Nowadays, it is hard to find a stable and well-paid job. Fixed-term contracts, commission contracts or contracts for specific work are the daily bread.
In turn, the need to obtain additional financing in the bank, sooner or later probably everyone will. Does this mean that we don’t have a chance for a loan when working on a commission or a specific work contract? How do you approach a loan to get it?
What exactly is a contract loan?
The loan under the mandate contract is not separate in terms of the purpose of the loan. In this case, the type of financing, which is a loan under a mandate contract, was highlighted due to the loan collateral. In this case, it is about any liability at the bank, which will be secured by documenting employment and income, a mandate contract or a work contract.
For whom credit on a commission contract
The group of clients to whom this offer is addressed is, of course, all persons who can confirm their employment and the amount of remuneration by means of a mandate contract or a specific work contract. The loan can be granted to persons whose commission contract is continuous from min. 3 months.
What about creditworthiness?
At present, probably every bank customer is aware that in order to receive a loan, one needs to prove their creditworthiness, that is, among others, to document stable employment and stable income. In turn, the mandate contract is characterized by a short period and irregular payments. Therefore, there are often fears whether working on the basis of a mandate contract or a specific task contract, we have a chance to obtain financing in the bank? Does one not exclude the other?
The answer is simple in this case. Working on a commission or a specific work contract, we can apply for a bank loan. How is this possible?
Not only the type of contract matters. Stable employment and high income do not always go hand in hand with a permanent employment contract. Not just a work contract or a mandate contract. Freelancers are becoming more and more popular and it is not difficult to find a freelancer who earns a lot more than full time.
The borrower’s credibility and credit history are also significant. Scoring Credit Checker has often determined the bank’s final decision regarding financing. It is only the combination of all these aspects that gives us a real picture of a potential borrower.
Seeing market demand, banks must regularly change and shape their offer in line with the needs of society. Hence, a much richer offer than just a few years ago and an increasingly popular loan contract.
What will the bank consider when assessing our credit standing?
1) Employment experience with the current employer – JUST 3 months of employment so that you can get a loan.
2) The period for which the mandate contract or contract for specific work is concluded – the longer the better, however, it is possible to obtain a positive decision even if the contract ends in a month
3) Amount of remuneration – it can be documented with extracts or bills from the mandate contract
4) Credit history – the Credit Checker report needed to analyze the situation can be downloaded independently.
4) Borrower’s credibility, i.e. scoring in Credit Checker – many factors decide here. An experienced credit expert knows how to increase scoring and increase the chances of a positive bank decision.
5) Fixed expenses and liabilities – loan installments, limits on credit cards or alimonies, etc.
How much credit on a commission contract can I apply for?
When verifying the customer’s creditworthiness, the bank pays attention to the form of employment, but this does not prejudge the final decision. As we have already pointed out, creditworthiness consists of a number of factors. In turn, the amount of funding that we can receive will mainly determine the amount of our income confronted with expenses and other liabilities.
Even very high incomes will not help if our expenses and obligations are even higher. According to the bank, we have to have free funds in our home budget every month that could be used to pay the installment.