Two borrowers often have better opportunities than one alone.
This simple truth can benefit couples and apply for loans together.
A second applicant for a loan request has three main advantages:
- Higher credit sums are possible.
- Because of the lower risk, the banks offer better terms.
- The loan approval often comes much faster.
Co-applicant lowers the risk of the lending bank
Before forgiving a loan, the bank checks the risk. The Schufa score often plays a role, but income and regular expenses are also very important. The core is one question: is the fixed income less the fixed expenses enough to pay the installments for the loan you want?
The more convinced the bank is that the loan is repaid on a regular basis, the lower the loan interest rates are. On the other hand, the bank considers it to be more risky to pay with higher lending rates.
Apply for Credit Together: Two Income as Security
When it comes to real estate financing, then the house or the condominium is the most important security. In installment loans, however, there is no real security in this form. For example, the money can go into the renovation of the apartment, be used for a holiday or to settle open bills. Here, the bank has no collateral, which they can use in case of doubt.
The only “security” is the income of the borrower. And if there is not only one income from a co-applicant, but two – then that means “double security” for the bank.
If you have been looking for a loan in vain, you should try a co-applicant. Even though banks have only offered comparatively expensive loans or small loan amounts so far, a second applicant makes sense.
Try it right out: Here it goes directly to the loan application – your co-applicant, you can enter with. As always, the request is 100% free.