In the economically uncertain times, many employers no longer have the option of issuing permanent contracts. The order offer in industries is often also dependent on the season. Construction workers know about this problem.
You only get a temporary employment contract until the next cold period. The problem is that this group of people in particular often need a small instant loan with a temporary employment contract to bridge the gap. The unstable work situation makes it very difficult to get a loan from a bank.
The problems of getting an instant loan with a temporary employment contract
Overall, there are two important aspects when evaluating an applicant. The first is a positive Credit bureau, which can also turn out to be positive even if you have a limited-term employment contract. It only contains information on solvency and payment reliability. If this point is given, you are already quite a bit closer to the desired instant loan.
The second critical aspect is the exclusion criterion for most applicants. Regular income often has to be proven. This can hardly be said about a temporary employment contract. This is why it is so difficult for most people to get an instant loan.
Possibilities nevertheless to get an instant loan with a limited employment contract. The most common variant is that the applicant must provide security. For example, it can be a valuable item. Cars, real estate or life insurance are often used. If there is no such thing, you can also rely on a guarantor. If you become insolvent yourself, this will repay the remaining debt.
No security and no guarantor?
Then the alternatives for a loan are slowly becoming scarce. For really short-term bridging you can use the overdraft facility. However, this has very high interest rates and is therefore very expensive. This alternative should only be used in extreme emergencies, since it is often the start of the debt trap.
If it is only about small amounts and you still have valuables at home that are not needed, you can also visit the pawnshop. Here you get the value of the given things in cash and can later redeem them for a small surcharge. You also remain absolutely anonymous.
The last option is often to ask friends or relatives for a loan. The advantage is that this is often granted without interest and the repayment modalities are very flexible. In any case, however, you should carefully record all modalities in a contract and keep a record of the repayments. Unfortunately, personal loans often lead to distortions in friendship.