The payday loan with an indefinite employment contract represents the simplest form of borrowing. The fixed income serves as a security for the consumer credit lender. For some types of payday loans, such as car payday loan, there are other collateral backed by a reduction in the effective annual interest rate.
Even if the regular income from work provides a high level of security for a payday loan with a fixed employment contract, few banks have individual exclusion reasons for lending. For example, individual banks expressly point out that they exclude certain professional groups, such as temporary agency employees, from lending. This is hardly comprehensible given the legal provisions for temporary workers, but must be taken into account by those involved in the application for credit.
Is a minimum income required for a payday loan?
Depending on the bank, a permanent employment contract may be paid on the basis of an indefinite employment contract or an income above the exemption limit. A partially attachable monthly income increases the collateral, but is only relevant if the borrower does not properly meet his repayment obligation. The claims they make on the income of an applicant are only partially indicated by the domestic financial institutions directly on their website.
There are also differences in the assessment of the income relevant for a payday loan with an indefinite term employment contract. These concern not only the consideration of possible additional income, but also the income calculation of wage earners. The most common is the consideration of the average income of the past three months and the assessment of the minimum amount.
If a financial institution refuses the first application for a payday loan with a permanent employment contract due to a negative budget, it is recommended to submit a new payday loan application with a longer term. The payday loan bill does not refer to the total amount of the payday loan but to the monthly repayment installment. This decreases with an extended payday loan term, so extending the term increases the chance of making a positive decision.
What do employees with a fixed employment contract look for in a payday loan comparison?
Using a credit comparison for the payday loan with an indefinite term employment contract find the cheapest offer by paying attention to a low effective annual interest rate. This contains all the additional costs associated with borrowing. In addition, the credit providers indicate the total credit costs for the entire term.
A reduced repayment term reduces the total cost of an indefinite term payday loan. Too short a contract period, however, leads to high monthly installments, which are difficult to pay in the case of special issues or by using the disposition credit. The agreement of a longer term together with the associated lower mandatory rate is more advantageous than the renunciation of financial reserves. Ideally, the payday loan agreement allows the borrower to make early repayments on an indefinite term basis, without any deduction of prepayment interest. The corresponding contract clause allows additional repayments if the employee has free funds.
Just as useful as early repayment approval is the right to an occasional installment suspension or the commitment contained in the payday loan agreement to modify the repayment plan at the request of the borrower. Since a fixed employment relationship does not guarantee a permanently secure income, the conclusion of a rate protection insurance for the payday loan with a fixed employment contract is generally recommended. Such is unnecessary if there is already a risk life insurance and a disability insurance. Although the credit insurance basically pays even if the unemployed are not responsible, in this case it offers only temporary protection.
The offer comparison shows not only offers with fixed interest rates for all customers, but also payday loans with credit-dependent interest rates for the payday loan with a permanent employment contract. In this case, the interested person only learns the personal effective interest rate after a specific request. With rare exceptions, payday loans with credit-based interest rates are available for applicants with outstanding credit ratings. To determine this, most banks use a combination of the private credit score and their own credit rating.
The payday loan with permanent employment contract and weak credit rating
In addition to a secure income, the lenders require a private credit information without negative entries for the lending. Even with consumers with permanent contracts there is sometimes a private credit negative feature. This severely restricts the possibility of borrowing, even if individual banks do not generally reject the payday loan payment in the case of just one soft negative feature.
The easiest way to apply for an existing negative entry a private credit-free payday loan with a fixed employment contract, the amount amounts to 3500 euros or 5000 euros. The Swiss Federal Financial Institution pays the amount in euros, so that no foreign currency risk arises. The Swiss bank has no access to the private credit data, but reports the payday loan payment to the domestic credit protection, so that no employee can simultaneously apply for multiple private credit-free payday loans from different banks.
Other options for a successful application for a payday loan with a permanent contract but weak credit rating due to an existing private credit-Negativeintrages represent the appointment of a credit intermediary and the borrowing through a personal payday loan platform. An intermediary will also find for prospective payday loaners in general with bad private credit a suitable offer.
On the personal payday loan exchanges, applying for a payday loan, even with a fixed employment contract, is as helpful as possible in describing the intended use, as many private lenders largely decide whether they want to support the specified use of funds and pay less attention to traditional creditworthiness than commercial banks.