This creditworthiness presupposes a sufficiently high income, an unencumbered Credit Bureau and permanent employment. If a customer can meet these conditions of the bank, there is nothing standing in the way of a loan for 2 people. However, there are also loan seekers who have a poor credit rating due to an income that is too small. Here, a guarantor or a second applicant can secure the loan. No matter for what reasons the loan is taken out and secured, the loan seeker must be able to pay the loan with two people.
Credit with 2 people – the location
But it is not just the small income, a second person may also be necessary if the loan is high and the term is long. Banks are happy to see a loan secured with a second person. They have two incomes that reduce the risk of default.
Banks have a duty of care towards their customers that ensures that a loan is not approved if the customer’s creditworthiness does not allow it. Because of the low income or maybe other loans and installments are due. If the latter is the case, debt restructuring could be considered.
All liabilities are combined into one loan, the customer then only has one creditor. This reduces the risk of a loan default. In addition, savings can also be made in this campaign.
In addition, the 2nd applicant brings better conditions for a loan for 2 people. However, he must be solvent and have a clean Credit Bureau before his signature under the loan agreement is valid.
The conditions to be predestined for a loan
In order to be predestined for a loan, there must be a sufficiently high income that is above the garnishment exemption limit and must have a garnishable portion of at least 100 USD. An example: A single person must earn a net 1,160 USD to get a loan. A four-person household must be able to prove 2,500 USD net. Everything below is not considered income by the bank.
The second applicant or a guarantor could fill this shortcoming. The more people take in a household, the more the garnishment-free limit shifts upwards. The bank can then assume that it will not be able to attach anything in the event of a loan default and will remain on its loan. Garnishments are generally only carried out when the borrower can no longer pay.
The permanent position may not be temporary and may not include a trial period. The customer’s unencumbered Credit Bureau is very important for a loan for two people. If negative entries are found, the bank can reject the loan.
In general, a self-assessment should be obtained from Credit Bureau before applying for a loan. From this, the customer can see whether he has negative entries or whether they have long been completed. These could then be deleted, which would increase the customer’s creditworthiness.
The loan for two people means that both borrowers are jointly and severally liable for the loan. If the worst comes to the worst, the bank can claim the money from both people. If, for example, one account is not covered in order to be able to pay the installments, the bank can debit its installment payment from the other account.
The bad Credit Bureau loan
If only one borrower has a bad Credit Bureau and the Credit Bureau is unencumbered for a second applicant, the loan is nevertheless approved because the security is available with the second applicant. If both borrowers have negative entries in the Credit Bureau, the situation is such that the loan is probably not approved.
The requirements for a loan from abroad are roughly the same as for a normal loan from German banks. The income must be sufficiently high and with this form of credit the permanent employment contract is very important, it must not include a trial period. The Credit Bureau does not matter because the bank does not take any insights. The credit is also not entered in the Credit Bureau.
Anyone who thinks that serious features such as bankruptcy, garnishment, or an affidavit are in the Credit Bureau will not see the bank because they do not query the Credit Bureau, they are wrong. The bank inspects the public debt register and there it sees the hard features and will refuse the loan.