If you have ever tried to obtain a loan, you will know that the banks will only grant it if you, as the borrower, can provide various collateral. The higher the quality and crisis-proof collateral, the higher the chance that you will get a loan.
Banks have also considered the way in which collateral should be available. In Germany, they rely on a good credit rating, which is based, among other things, on information provided by Credit Bureau and the income and expenses of the borrower. If the creditworthiness is high enough, the loan can be taken out. If it sticks somewhere, it needs to be touched up.
Especially with large loans, many borrowers have a problem with creating a good credit rating on their own. Even if there is a solid income and Credit Bureau only has positive things to report about the borrower, it may not be enough for the banking houses. You see the default risk, which is particularly high for large loans, and would therefore like to have this additionally hedged.
The desire for a second person
If you feel the same way and the banks have always rejected your loan application because of poor creditworthiness, then you should take out the loan with a partner. So with a second borrower or a guarantor who signs the loan agreement with you and is therefore liable for the loan.
When taking out a loan with a partner, it does not primarily matter whether you have the second borrower or “only” a surety. In principle, this is the same for banks. Because both people secure the loan and are liable if the actual borrower does not service the loan regularly.
Who pays off as a loan partner?
If you are now considering who you could use to take out the loan with a partner, then in the first step you should consider who could help you particularly well with your own credit rating. If you are married, the bank will always ask whether your spouse cannot be the second person. In many cases, this is the most common method of taking out a loan with a partner. However, you are not required to include your spouse in the loan. You can also take any other person.
All those who work as civil servants or in the public service are particularly well suited. The job must be permanent and should generate a decent income. Negative entries in the Credit Bureau are not desirable. In addition, the second person should have no other financial obligations.
You should also be aware that a great responsibility when taking out a loan with a partner rests with the second person. She is responsible for the loan and must end up ironing out the mistakes you may have made. In addition, just like you, the second person receives an entry in the Credit Bureau that indicates that a loan agreement exists.
Which loans work best with partners?
If you want to take out a loan with a partner, you usually do this for loans with a large volume. So with loans that have a long term and a large loan amount. This usually applies to real estate loans, car loans or large installment loans. Consumer loans or small loans of all kinds are rather not intended to be taken up by two borrowers. So if you only take out a consumer loan to finance the new television, you don’t need a guarantor or a second borrower.
Therefore, before taking out a loan, check whether you need or can take out a loan with or without a partner using a simple loan comparison. If a second credit partner is not necessary, you should not offer this either. There is no point in borrowing another person if it does not benefit.