Most credit institutions have strict conditions to grant a loan. This includes a secure income to ensure that the borrowers can also repay the agreed rates. Even with the start of a new employment relationship and an agreed probationary period, credit is in most cases not possible. The probationary period can be ended immediately by the employee, which is why credit institutions often reject their loan requests.
However, there are also numerous banks and lenders who also provide borrowers who are currently in the probationary period, a certain amount to make large purchases can afford.
The best chances are for workers in the probationary period with a disposition credit. In the first months of new employment, the borrower can thus apply for the discretionary credit. However, the borrower pays high interest rates for the disposition credit, but has the option of overdrawing his account. Many banks limit the amount of the disposition credit to a monthly salary.
Outside the probationary period, the repayment credit can, in normal cases, be extended to a multiple of the monthly net income. Disposition credit is the most common way to increase financial flexibility.
During the probationary period, the bank can assume that the repayment credit will always be balanced out with incoming salary. If only a higher amount is considered for the borrower then the borrower can improve his chances of getting a loan with the help of a guarantor.
This must be able to prove a regular income and are no longer in the probationary period. The guarantor is liable in the event of insolvency of the borrower with his salary and assets. The bank thus has collateral and the granting of the requested loan amount becomes more probable.
Car loan as an alternative
If you are in possession of a car, you also have the option to take a loan with your car as collateral. The advantage of this variant is that you are independent of a guarantor. The car is also in the probationary period as a sufficient security.
Originally, the car loan has been a possibility when purchasing a new vehicle. However, many borrowers have modified this loan for owners of a vehicle and so a loan can be taken if you are in possession of the vehicle registration. The credit limit may only be below the vehicle value.
However, the borrower should only choose this form of loan if he can actually repay the loan to the lender. By owning the vehicle registration document, the lender has the option to pay the vehicle if the borrower can no longer pay the agreed installment.
Assets as collateral
For all other types of loan further security for the bank or the lender. In doing so, various collateral can be offered to the lender. Particularly promising are life insurance, real estate, land or something else wealthy. The basic requirement for granting the loan is also the credit bureau information.
Therefore, if you do not have a negative credit bureau entry and deposit a security with the bank, no matter if it is an item or a guarantor, the chances are very high for a working relationship where you are still in probationary period promising. It is only important that you ensure the ability to pay to secure your own property or that of the guarantor.
5 tips on credit despite the probationary period
1. Make a guarantor
Getting a loan during the probationary period is extremely difficult. Therefore, it makes sense from the outset to have a solvent guarantor who signs the loan agreement in addition. However, this guarantor must have sufficient income to be able to bear the credit burden alone if necessary.
If it is someone who does not belong to family, under all circumstances a guarantee contract must be set up immediately in order to secure each other. This prevents disputes that could lead to the termination of the guarantee relationship.
2. Provide sufficient collateral
Those who are in the probationary period do not necessarily have to be without collateral. If the interested party can prove that he has material security covering the credit line, he usually does not object to the granting of a loan during the probationary period. The collateral should be recorded and proven. For example, it may be advisable to store smaller items such as jewelry or watches in a bank deposit box of the lending bank.
This not only confirms the existence of the collateral, but also gives the bank a direct right to seize attachments.
Read the contract carefully for such endeavors, because one should be asked before the locker is opened without consent.
3. Have the takeover guarantee prepared by the boss
A probationary period does not last forever and often an accurately working boss knows quickly whether he wants to employ a certain person permanently. If this is the case, the borrower can also have a certificate issued by the boss on the subsequent acquisition in the business.
This gives the bank the certainty that even after the end of the probationary period, an attachable income will be available. Thus, nothing stands in the way of lending.
Even if there is such a confirmation, it is not a legally binding guarantee that the employer will abide by it. Therefore, the banks can still refuse.
4. Submit agreement for alternative job
Another way to secure a loan during the probationary period is to create a second hedge. So you can get a commitment from another company for the hiring, if the trial period at the first does not go up to expectations. However, this usually causes great difficulties, because hardly any employer likes it when other companies hire potential employees.
Therefore, such an attempt should only be the last straw. Incidentally, there is no legal right here that the employer must comply with the promise. Therefore, one is also dependent on the goodwill of the bank in this case.
5. Required documents
A probationary credit usually requires a valid ID card or driver’s license. In addition, a copy of the employment contract must be submitted which shows exactly when the probationary period ends and whether at the end of a takeover in the company is promised.
Just by such a letter, the chances can be increased significantly. If you bring in a guarantor, you should take a copy of the bond with the bank and present it at the first meeting. In addition, there can be no harm in keeping a record of possible collateral.
The latter should be audited and certified by an independent body. The lawyer may also be consulted. In the case of a guarantee insurance, the policy must be presented to the bank as proof, so that it can access all the data.