For taking out a loan, the banks and savings banks demand very specific conditions. As a borrower, you must have a good credit rating to ensure that the default risk during the repayment phase is as small as possible.
But not always this good credit rating is given, which can be influenced by a variety of factors. In that case, it is important to create optimal conditions for borrowing in order to be able to hold the loan of your choice in the end.
When a loan with multiple borrowers makes sense
The question of the meaning or nonsense of a loan with multiple borrowers is answered quite quickly and quite understandable. Since a negative private credit or a lack of employment, which is usually the factor for an unfavorable credit rating, do not generate creditworthiness, any bank will reject the application for a loan. Because nobody takes the risk to end up without a repayment of the borrowed money. For the banking companies, this means that they are losing millions of euros in losses through precisely those borrowers who can not pay.
If, on the other hand, a loan with multiple borrowers is sought, the bank has additional collateral that puts the acceptance of a loan in a completely different light. Even if a borrower does not have an optimal credit rating, another borrower may be able to show it and be worthy of a loan. For the bank, this results in an interesting package, which has several contacts and thus several guarantors. Because every borrower, no matter how many this will be in the end, is liable for the loan. This means that in the event of payment defaults, the bank can ask several people to pay, which reduces the risk of default because the chance that no one can pay is very low.
How to borrow from multiple borrowers
In order to be able to take out a loan with several borrowers, it is important that the participating borrowers all sign the loan agreement together. Therefore, it should be decided in advance who should be involved in the loan and where it will be included. Each borrower also requires extensive documentation. This includes an identity card or passport that confirms the identity and records of income and monthly expenses.
In addition, every borrower has a permanent residence in Germany and must be of legal age. If all this is given, a loan can be taken in any amount. Most consumers are interested in such a constellation for an installment loan, which is at leisure and whose money can be used individually. Some, however, also rely on a real estate loan and want to hedge this because of the long term with many borrowers.
If it is a question of borrowers who are barely able to find a common point of intersection, the loan should be taken over the internet. The documents can then be filled in peace at home without the pressure arises to have enough time for a joint appointment with the bank. Only the legitimacy for the credit, which must be made in an online offer by PostIdent, should be carried out together. However, since the opening hours of the post office are quite generous, this should be quite possible.
It is important to know that all borrowers receive a corresponding entry in the private credit, which indicates the borrowing. If the credit rating is not so good, this entry may mean that no further loans can be taken during the term of the loan with multiple borrowers.