In Germany it is no longer a matter of course that you have a permanent employment contract. But on the contrary. Many people have to be content with a permanent employment contract and therefore always look into an uncertain future. Because they usually never know how long they can stay with their current employer and also have no opportunity to take a look into the future.
Because whether the contract will be renewed after the expiration or not is also uncertain. The situation becomes even worse when the person concerned is employed by a loan agency. Here it may be that the workplace changes daily or weekly. You have a contract with the lending company, but the agency then sends its employees back and forth at will. Depending on how the companies are doing their best to help out. For the person concerned, this means that he cannot estimate how long the temporary employment agency has been employing him. Employment is only possible as long as the company has orders for the employee. Failure to do so will result in termination. That is why all employment contracts at temporary agencies are always limited and can be terminated at any time.
The credit in such a situation
If a loan has to be taken out in such a situation, this can be quite problematic. Because the banks are aware of the insecure situation of temporary agency workers and are therefore very reluctant to grant a loan in spite of the agency. Finally, the employment contract can be terminated at any time. And then the borrower usually has no money left to service the loan. The debt trap snaps shut and, in the worst case, the bank has to give up its money. A risk that no bank is happy to accept and therefore will always look closely at who it gives a loan to despite the loan company and who it does not approve this loan. Because there are certainly ways to take out a loan despite the loan company. But only if you can adapt to the conditions of the banks.
The fixed income decides on the loan despite the loan company
In order to be able to take out a loan in spite of a loan company, the bank must have a fixed income. As a contract worker you will not have this. Therefore you will not have to get around and involve a second person to borrow money. At best, this is a co-applicant who secures the loan through a fixed income, a good Credit Bureau and few other financial obligations. If you are married, the spouse could appear as a co-applicant. That would definitely be the wish of the banks. If the spouse is not suitable, another person can also take over this part. It is only important that the person is solvent and can support and secure the loan until the end.
The residual debt insurance
You can also get additional security through a residual debt insurance in the loan. The banks will recommend this to have additional security in the event of unemployment. A residual debt insurance does not have to be taken out with the lending bank. It can be taken up regardless of the loan. Since there can be quite large differences in price, it is worthwhile to compare a few offers in advance. Because residual debt insurance is not cheap and makes the loan more expensive. Anyone who compares and analyzes here in the end saves a lot of money.