Credit for fixed-term and temporary contracts
As much as it is easier to apply for and obtain a loan when you can justify a salary or regular income related to its activity in CDI, as it can be complicated to find a creditor who brings you a loan as a temporary or when you are on a fixed-term contract or CDD. Even if you are not unemployed, finding a loan is an obstacle course.
According to INSEE, 87% of new hires in 2016 were on fixed-term contracts. This contract often demotivates financial institutions who use solvency risk as an excuse to increase counterparties and guarantees in exchange for money. However, there are lenders who offer credit for CDD and intermediaries as a solution to this clientele.
Credit for fixed-term and temporary contracts is an initiative of the public authorities in collaboration with specialized finance companies and certain loan organizations. This financing tool makes it possible to access personal credit and aid intended for temporary workers and CDDs in the credit market in United States. To benefit from it, you must know the channels, formulas and functionalities of these devices in order to choose the right loan for you. Use the CDD and temporary credit simulators online so that you have a broad overview of the proposals that are presented to you.
How to define the credit for temporary or CDD?
Credit for fixed-term and temporary contracts is a credit offer dedicated to financing the needs of individuals on fixed-term or temporary contracts. This credit is qualified as social and can finance the purchase of a vehicle, real estate or work in your home. It can take the form of a micro-credit , a consumer credit or a loan between individuals. There are several players who offer this type of loan on the market. The advantage is that it is:
- Flexible and adapted to the needs of people in precarious employment
- Fast depending on the nature of the loan requested, the lender and the amount of the loan
- In good company. The lender benefits from a personalized follow-up according to the evolution of his financial situation.
There are several loan formulas for temporary CDD provided by associations such as traditional credit institutions.
CDD and interim credit players
The players in CDD and interim credit are relatively numerous and well-known. Among the so-called associative actors, we have:
- The Fastt or Social Action Fund for Temporary Work. This association was created in 1992 by the main social partners of France and is financed by companies that hire on an interim basis.
- The family allowance fund or CAF also offers loan products intended for workers without CDI
Beyond the social actors, there are several banks and even start-ups that offer CDD and intermediary credit offers of all types.
Interim associative loans
- Fastt credit
The fixed-term and temporary loan services on the market depend on the various associations. The Fastt provides facilities for access to housing, mobility and employment by securing the beneficiary's access to the money he needs. In partnership with the public authorities and other commercial banks, it offers loans for vacations, housing repairs, children's education, etc. the credit granted can be a usual consumer credit, a mortgage or a microcredit.
The Fastt can offer up to $ 5,000 over 36 months provided the applicant proves their acting status. For a car loan for example, the applicant must be on an interim mission when the application is submitted. He must also total 600 hours of mission over the past 12 months.
In terms of real estate credit, in addition to current CDD and intermediary loans, Fastt has Credicil which allows first-time buyers (those who are accessing housing for the first time) to finance their main residence. It is in reality a complementary loan which does not exceed $ 10,000 but is issued at a very attractive rate of 1% over 10 years. To subscribe, you must provide proof that you have worked more than 1600 hours during the last two years. It is also necessary to be on mission for 30 days and not to have a main residence.
In addition, the repurchase of interim credit is also a solution offered by the Fastt to reduce monthly payments and restructure your credit. To file a credit redemption file, you must:
- be on mission when requested or do so within 1 month after a mission
- Justify more than 3 years of temporary work.
- The CDD and interim CAF credit
The family allowance fund can offer you, in the event of a fixed-term contract, interim or precariousness, the zero-rate loan, the loan of household equipment, the emergency loan payment invoice etc. The applicant must submit a complete application for assistance with the support of a social worker. The supporting documents requested must prove his precarious situation and his financial conditions. The amount of the CDD loan granted will depend on its repayment capacity and its family quotient. The family quotient should be well simulated on the CAF online site.
CDD and interim banking credit
It has been a long time since certain banking establishments created credit products intended for the financing of people in CDD or in interim. The number of large financial institutions with subsidiaries that provide CDD and interim credit offers increased significantly following the 2008 crisis. Some creditors offer a service accompanied by a free service to help find creditors. 'A permanent position. Others in partnership with specialized social funds offer shared risk loans. Regarding the type of credit, we have:
- consumer loans with the same characteristics as a personal loan, that is to say without supporting documents for expenses, but with good processing speed of the loan application. However, the auto consumer credit, CDD and temporary work takes into account the particularities of the precarious employment contract to adjust to any changes in your situation. When you have work, you pay more.
In times of unemployment, repayment breaks are provided. We can thus change the duration as well as the monthly payments in agreement with the lender. Prepayments are free and the annual percentage rate of charge (APR) is fixed. The purchase of additional insurance is however required.
- mortgage loans, more easily granted by banks or credit intermediaries when a spouse has a permanent contract (the calculations will be made on the basis of the spouse's income). In addition, if you manage to prove that the CDD or the interim is a choice of career, which is easier to do for intermittent entertainment, the appreciation of the bank may change. In addition, if you are able to easily rent out the accommodation you have acquired and if you have a personal contribution, the bank can agree to provide you with additional credit of up to $ 80,000.
For all of these loan products, you can also use the services of a credit broker to help you find the right CDD and interim credit plan.
Interim credit with interim agencies
It is possible to work for an interim agency and to benefit from a consumer loan, real estate or work according to your request provided that you are not prohibited from banking, have a low level of debt and demonstrate your ability to cope with different repayment deadlines. Thanks to the partnership that these agencies forge with the banks, the latter can lend you up to $ 21,500 for consumption. To obtain it, you must, in addition to the conditions already mentioned, be an interim when applying for the loan and open an account in the agency's partner bank. The documents to be provided for the credit are:
- the borrower's identity card and proof of address
- the current assignment contract
- the latest payslips.
It is also granted to applicants in good financial health, mortgage loans at preferential rates with low application fees.
CDD and interim credit and union loan
The union loan is a loan between individuals, organized through collaborative platforms with the same collateral requirements as a bank loan. These platforms are able to provide you with credit in the event of CDD and temporary work. However, it is advisable to check the reliability of the site which offers a loan before entrusting it. Take, as in all cases of credit, the precaution of obtaining a signed loan agreement, including all the conditions of the loan. For more security, you can hire the services of a notary.
Today despite everything, collaborative lending is increasingly invested by innovative start-ups which, for example, offer to appeal to the entourage close to the borrower. The participation of the entourage can take the form of a contribution which guarantees to a height, the financing of the credit. This guarantee is returned to the beneficiaries at the end of the repayment of the loan.
The CDD and temporary credit is an innovation that allows workers in precarious situations to finance their important personal projects or unforeseen events. If necessary, remember to assess your financial situation and the usefulness of the desired credit. Be careful with promotional rates which in most cases only apply to repayments of less than 2 years. If your monthly payments become difficult to bear, consider restructuring your CDD and interim credit.