Installment Loans

Is an installment loan possible despite a trial period?

Posted by Gordon Buchanan

Yes, an installment loan is possible in principle during the trial period. However, you have to meet certain requirements and the number of eligible banks may be lower.

That is what is special about a loan during the trial period

That is what is special about a loan during the trial period

The trial period with a new employer is usually six months. During this time, you and the employer can test how they fit together. Most of the time during the trial period there is a notice period of only two weeks. Banks look above all at your financial situation when granting. At the top of the importance scale is a regular and sufficient income. Because of their salary, employees in the eyes of the bank are safe customers. In contrast, the bank does not expect regular income for the self-employed. Therefore, they are considered a security risk. Even during the trial period, the job is not as safe as someone who has already worked in a company for three years. There is a risk during the trial period that one of the two parties will terminate the employment relationship within two weeks.

For this reason, some banks classify the creditworthiness of employees during the probationary period as lower than for permanent employees. They may even categorically exclude an installment loan during the trial period.

But not all banks. There are credit institutions that grant you an installment loan despite a trial period. It doesn’t even have to be small sums.

If your salary and creditworthiness are sufficient for this, high sums of several tens of thousands of dollars are quite possible. They may just not have the wide range of providers that permanent employees have.

Credit despite trial period: banks like to see that

Credit despite trial period: banks like to see that

The trial period is far from being an obstacle or even an exclusion criterion for an installment loan. However, it is important that your financial situation is solid. It is an advantage if you have just changed your employer seamlessly – in the meantime you have not had a long period of unemployment. Banks often rate this positively. The credit rating score, and thus your handling of previous liabilities, is also an important criterion for bank lending.

In addition, loan collateral is well received by banks. In addition to the sufficiently high salary already mentioned, a second borrower, such as your spouse, or a vehicle registration document also serves as security for the bank. The bank knows that you have, for example, material assets in the form of a car that you could sell if necessary to pay the loan. However, collateral is not a 100% guarantee that you will get a loan despite the trial period. Ultimately, an individual review by the bank is always required.

The most important thing is that you can afford the installments for your loan despite the trial period. Then basically nothing stands in the way of an installment loan. Our installment loan specialists will be happy to advise you on this topic and help you find a suitable financing partner.