Contract and work contract loans – where to get them?

Contract and work contract loans – where to get them?

A common problem faced by applicants for a bank loan is refusal due to employment not based on the employment contract. Although such people work and it happens that they achieve higher incomes than if they worked full-time, the bank recognizes that they have no guaranteed employment and are not credible borrowers. The need for permanent employment can be a barrier that fortunately is not set by loan companies.

Income more important than the type of contract

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What is more important for loan companies is the amount of income obtained by the persons applying for the loan. Therefore, the most important criterion for granting a loan is creditworthiness and good scoring in TLV, and it does not matter how the income is generated. This means that the borrower must be able to repay the loan in any way. It is worth noting that the list of allowed incomes is often extended and goes even further to even more uncertain areas - even such income as allowance or scholarship is allowed, which is, after all, granted for a specific, short period of time. For this reason, people who practice freelance jobs, so-called freelancers, students or very young people.

Loans without certificates

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Loans without certificates and loans on evidence were once synonymous with non-bank loans. Although customer requirements have become more stringent, many companies still practice this type of activity. This does not mean that the loan will be given to anyone without any conditions. Usually, an applicant's written declaration of the type and amount of income received is sufficient. However, this does not mean that you can enter anything in the application. A lie always has short legs, and the borrower can be sure that the information he provides will be checked, all the more so because sometimes it is required to provide contact details to the employer. If a loan is obtained through a lie and the company finds out "after the fact", it has the right to terminate the contract and report to the police suspected of attempted fraud. Therefore, you should always provide true information, especially since the lack of an employment contract is not an obstacle to getting a loan.

The companies will check the customer's income themselves

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It would be a lie to say that regularity of income does not count. It matters, but often it is only checked backwards. It happens that a particular loan company will require a history of inflows to the client's bank account from the three preceding loan months, in which case it will be unnecessary to present any documents confirming employment. Some companies will deal with this problem themselves and will automatically download a customer statement when they verify their identity through an instant application. By providing your bank details to such a program, you agree to the loan company's insight into the transaction history. However, this data will not be stored anywhere and will be used only once - to analyze the loan application and issue a decision.