Fixed-term contracts (CDD) are more and more numerous in France. They allow employers to temporarily hire an employee, as part of a replacement for example or for a one-off assignment. A person can be hired on a fixed-term contract for a maximum of 3 consecutive years . A CDD can be renewed only twice. People on CDD cannot therefore project themselves financially into the future, and encounter problems in applying for personal credit from banks and other organisations.

Obtain a personal loan in CDD

Considered as a sign of a precarious situation, the fixed-term contract is not very well perceived by banking establishments. However, today, banks have to adapt to this type of contract, which has been on the rise for a few years. CDDs also represent a majority of young and dynamic workers, as well as future people on permanent contracts. An interesting target therefore for banks which are more and more favorable to granting them a personal loan than a few years ago.

The terms of the contracts for a fixed-term personal loan are more flexible and flexible. The monthly repayments are in particular adapted to the duration of the limited-term contract so as not to put the person who takes out a personal loan in financial difficulty. It is also possible to take out a CDD car loan more easily than in the past.

To finance his projects, a fixed-term employee can also turn to online platforms that offer the crowdfunding system. The financial organization Fastt (Social action fund for temporary work) also offers people on fixed-term contracts suitable personal loans , but also advice and support .

Personal loan insurance is not mandatory but strongly recommended. It protects you, your loved ones but also the lender, in the event of an accident in life that would affect the repayment of your credit: loss of employment, loss of autonomy, death.

What are the conditions to be met for a loan when you are on fixed-term contract?

Financial institutions that offer personal loan offers for fixed-term contracts are more demanding in terms of granting conditions. The main objective is obviously to eliminate all risks of repayment difficulties on the part of the borrower. They therefore require greater guarantees than for people on permanent contracts, for example. As with any loan, the institutions will analyze your file in detail, including your income and expenses. But they will be particularly attentive:

the number of loans you already have in progress  : if you have a mortgage and/or a car loan that weighs on your budget, it will be complicated or even very risky to add a new loan.

to your savings  : if you are regularly overdrawn, this will be badly perceived by the bank. On the contrary, if you save regularly, you will send a positive signal that will work in your favor.

the amount of your monthly payments , which must not exceed one third of that of your income. Beyond 33%, you risk placing yourself in a situation of over-indebtedness.

the length and frequency of your work periods . On this point, lending institutions generally match your CDD with the repayment period of personal credit. If you have a contract for several months (18 to 36 months), you will have a better chance of obtaining financing.

What to do in case of refusal of a CDD loan?

Have you been faced with several personal loan refusals because you are on fixed-term contract? Rest assured: alternatives are possible. First of all, it is important to identify precisely the reasons why it was refused to you. Know that you have the right to ask the financial institution the reason for the refusal and that it is obliged to communicate it to you. Depending on the reason mentioned, it’s up to you to adapt your approach.

solicit establishments that offer specific loans to people on fixed-term contracts . Organizations, especially online, have designed financing offers adapted to the needs and constraints of this target group.

appeal to a broker : with his knowledge of bank policy and the credit market, he will be able to build a quality file, which will value you in the eyes of advisers.

borrow with a co-borrower : if your spouse is on a permanent contract, this will undeniably facilitate your access to credit.

have a personal contribution : if you plan to take out an assigned credit, such as a fixed-term car loan, providing a contribution will reassure the lender.

wait and reapply later : if the reason for refusal is related to poor management of your accounts, take the time to restore your financial health and try your luck again later.

What are the differences between a CDD loan and a temporary loan?

Temporary employees, like fixed-term employees, have a limited-term contract. An irregular situation that often makes access to credit difficult because it is considered too unstable. To obtain an interim personal loan (car loan, work loan, etc.), you should therefore put the odds on your side by adopting the same advice as for a person on fixed-term contract:

Another point of attention and not the least: your experience in interim. Indeed, to be able to apply for a personal loan, the majority of banks require an acting experience of at least 18 months without interruption, which proves a certain professional stability. Whether you carry out regular assignments in several companies or in just one, the important thing is to prove to the bank your work frequency and your motivation.