A loan with 2 borrowers can be requested at the house bank
Credit bureau information and credit ratings are an important decision criterion for banks when granting loans. With a limited credit rating and a negative Credit bureau often only small or no loans are possible. With a second borrower, the credit rating can be significantly improved. A loan with 2 borrowers is available at many banks.
As a rule, all payments are processed via the house bank. Therefore, it is also common that a loan request is often expressed first at the house bank. Among the principal banks, a large number of bank customers include the branches of the savings banks and new banks. Modern bank customers, which usually include young people, often choose direct banks on the Internet as a house bank. A loan can be requested very simply at the house bank. Online customers apply for the loan on the Internet. At a branch bank, the bank customer arranges an appointment with his responsible clerk.
As with any loan from a foreign bank, a Credit bureau statement is obtained first. Credit bureau stores all credit-related data of more than 66 million people. A positive Credit bureau certifies the bank customer’s creditworthiness. With the available account data from the computer, the clerk can calculate exactly whether and in what amount a loan is possible. The existing credit rating can be significantly improved by a second borrower. Often with an additional borrower at many banks also better credit conditions are possible.
If a loan with 2 borrowers is requested, a new appointment must be agreed. The second borrower is usually a spouse or a partner from a registered partnership. On that date, the applicant and the co-applicant will sign the requested loan. With the signatures, both applicants become jointly and severally liable. This means that the co-applicant has to pay for the loan installments if the applicant does not pay. This Agreement will remain in effect as enshrined in the Credit Agreement or until the loan has been paid. This part of the contract also remains valid if the marriage has been divorced or if the partnership has ended.
Also credit intermediaries on the Internet offer loans with two applicants
Credit agencies used to have a very bad reputation. The dubious companies in this industry have often brought many desperate loan seekers to the brink of ruin. However, today almost exclusively reputable companies are active in the market. Serious credit brokers, such as Maxda, Bon-Kredit or even Creditolo do not make false promises to their customers. Like a bank, credit seekers are rejected if they do not meet the required conditions. A loan with 2 borrowers is possible with many of these credit agencies. For some companies this is even desirable for security reasons.
A loan with two borrowers is usually requested from a credit intermediary online on the website. Home visits, as they used to be in credit agencies, are now rare. In order to include the second borrower in the desired loan, a checkmark will be placed on the loan application page. The personal data of both applicants are entered in the application. If it is not a Credit bureau-free loan, a Credit bureau statement will be obtained in any case. By scoring the Credit bureau the creditworthiness is determined.
Another criterion for a positive credit decision is the credit rating. Usually, the credit rating for a loan with 2 borrowers is improved. If the criteria for a loan are fulfilled, the requested amount of money will be paid out. The loan will be paid out to the specified checking account. As with the principal bank, both applicants are jointly and severally liable for the loan. Anyone deciding on a loan with 2 applicants from a credit intermediary must remember that these loans are always more expensive than loans from branch or direct banks. The banks usually require higher interest rates to cover the risk and must pay the brokerage commission of the credit intermediary.
On credit marketplaces, a second applicant is not common
A fairly new form of financial services are loans from credit marketplaces on the Internet. Private individuals in these marketplaces apply for a loan financed by various private investors. The idea for these Internet portals comes from the USA and Great Britain. As early as 2001, the first peer-to-peer networks were founded. For the protection of the private donors a Credit bureau information is obtained. Loan seekers with severe negative features will not be admitted.
A loan with 2 borrowers is not common on credit marketplaces. If there is a partnership or marriage, however, both income can be stated. The higher revenues can result in a loan being requested being financed more quickly by private investors. As with the loans of the credit intermediaries, credit markets are expected to incur higher costs. Credit market operators, private lenders and a bank that runs the lending business make a loan.
Many banks and financial services providers welcome a second applicant for a loan
A loan is always a risk business for a bank. Due to the high risk of a credit default many banks and financial service providers are interested in securing the loan well. A loan with 2 borrowers is therefore offered by many banks. A comparison of different offers is always profitable. A second borrower can negotiate better loan conditions if conditions are favorable.