In many fixed partnerships or with married couples, it is normal for the necessary investments to be considered through a joint credit. Various banks and comparison portals advertise directly that favorable conditions beckons and there is a higher likelihood of a loan approval, if you make the application for two. Here are some pros and cons of borrowing together
Spouses do not have to apply for a loan together
According to statistics, around 20% of all loans are requested by 2 people together, most of whom are married couples. Banks often require a signature from both persons, ignoring the wish of the spouses. This is not officially required. This methodology of some banks creates the misconception of spouses that both persons have to conclude the loan agreement together. This is an advantage for the bank, as payment difficulties can be used by both debtors. As a couple, you should therefore weigh exactly what your pros and cons are.
Apply for two-way credit for lower interest rates
For most banks, interest is awarded according to the applicant’s situation. Often this is indicated by an interest rate frame, eg 3% – 11%. The better the creditworthiness of the applicant, the lower the interest. In the case of married couples usually increases the regular income and thus the credit rating. So usually waving a significantly lower interest rate for the online loan.
Loan with partner for higher loan amount
In case both spouses have a regular income, it makes sense to take out a loan together. When applying for the loan from both persons, the credit check is based on both salaries and adds up. Thus, the married couples increase their chances of obtaining credit approval and can additionally use a larger loan amount.
Worse overall credit rating with negative Bank entry
If one of the two spouses already has a negative Bankentry, that worsens its credit rating. Possibly. The person alone is not able to apply for a loan because they have a Bankscore worse than C. With Fanny Price, it is also possible with medium credit (BankScore C-M) to get a small loan, thanks to its own scoring system, normal banks are usually not willing to do so. Therefore, the joint borrowing should be reconsidered. Possibly. it is more advantageous if the spouse with a positive credit rating makes the loan application on his own to increase the chances of obtaining a license.
Both partners are liable for the credit for each other
In contrast to the marriage arrangement, where the financial gain of the community is only the gain during marriage, it is different when it comes to borrowing. In the case of joint borrowing, both spouses are jointly and severally liable to the bank, even after the divorce. Both partners are equally responsible for the loan. However, should a spouse apply for a loan for themselves during marriage, the other spouse will not automatically be liable for it.