Would you like to apply for a loan but a loan without a 2nd borrower is denied by the provider of your choice? How does the bank justify the rejection? With internal regulations? Lack of creditworthiness or was a co-owner demanded without comment?
We want you to get the self-financed loan that you can actually afford. The bank’s request for a second borrower can have very different reasons. Possible solutions to problems would be correspondingly diverse.
Loan without second borrower – reasons for rejection
If a loan is rejected without a second borrower, it is initially an emotional low for those interested in the loan. The questions, “What did I do wrong, why am I not creditworthy?” Concern self-esteem. At the same time, a long-cherished wish or inevitable loan requirement bursts like a soap bubble. The reason for the rejection offers a first starting point to find a serious problem solution without guarantor or co-applicant.
If the loan was rejected in the preliminary meeting, the clerk orally presents his motives. In the written credit process, it is not always easy to get a reasonably clear justification. Some credit institutions are content with a two-liner. Unfortunately, there is often little that can be used. Usually, the credit institution only sees an opportunity to lend if a second borrower or the spouse signs.
The rejection of credit without a second borrower is mostly based on two scenarios. Possibility one, a credit institution was chosen that requires married couples to apply for a loan together. However, the second reason is more common. The credit check showed that the personal creditworthiness, mostly shown by the Credit bureau score, is not sufficient for lending without solvent co-owners.
Problem Solving – Spouse’s Liability
Married couples are there for each other and stand in line for each other. Nevertheless, this emotional promise of loyalty does not automatically lead to the status of unlimited mutual liability. The legislator has taken great care to ensure that the economic freedom to make decisions regarding relevant payment obligations remains unaffected. Spouses (with or without a marriage contract) only have to be jointly liable for things of everyday life.
This affects the loan from the baker for the common rolls. But the situation changes with the lease for the conjugal apartment that is shared. Only the landlord who has concluded the contract is liable to the landlord. But not the spouse who is not the lessor’s contractual partner. Now it is the case that credit institutions earn little from installment loans.
Any possible credit risk should be excluded for lending. Loan without a second borrower is a problem for enforcement enforcement in married couples and married couples. Ownership of valuable items could be shifted back and forth at will. In the case of a garnishment, the bailiff leaves the house without sticking the cuckoo.
In order to exclude this real risk from the outset, both partners should sign. The countermeasure is very simple. A change of provider is made easy by free loan comparisons. Numerous other credit institutions offer low-interest loans without a co-applicant if the borrower has sufficient personal creditworthiness. A solution would be more difficult if there were real credit risks.
Liability for risky credit alone – problem solving
If the creditworthiness is limited, whether due to the Credit bureau score or a low income, credit institutions rightly demand collateral. Nevertheless, a second person does not necessarily have to be exposed to the recognizable credit risk. But on the contrary. Especially with real credit risk, credit without a second borrower should remain the only loan option for ethical reasons.
If valuable property collateral is available, these values could be liable for the loan if necessary. – For example, a well-paid savings contract or a property. Material things can be replaced. It is impossible to make up for a loved one to fall into disaster with a “forced” loan. Another option is to offer loans with higher interest rates. Many credit institutions only rate so sharply because they do not earn anything from the “cheap loan”.
Installment loans at higher interest rates, on the other hand, allow the lender to set up provisions for potential loan defaults. These provisions from higher interest income are available for loan loss provisions without reducing the company’s profit. The loan without a second borrower is more expensive in this case, but the additional costs correspond to the actual credit risk.
Find loan offers with poor credit ratings
The majority of loan offers published in free loan comparisons are aimed at borrowers with good or excellent credit ratings. Credit comparison calculators are interesting for the vast majority of all interested parties, since the credit costs are calculated as low as possible. Only rarely, not necessarily recognizable at first glance, do loan offers appear there that are issued despite the higher credit risk.
It would make sense to use Best Lender to find your way around without a second borrower. Best Lender enjoys an immaculate reputation as a loan brokerage portal. Credit offers from banks, including those that accept increased credit risks, could be found using the free credit comparison. (Identifiable by the delayed credit check). If bank credit doesn’t work, private investors could alternatively be approached.
Small investors are looking for fairly interest-bearing investment opportunities within the credit portal. Private lenders not only rate their credit decisions based on key figures such as banks, but also according to their own criteria. Basically, most investors are willing to take a manageable credit risk. This would make a loan possible even without a second borrower if banks already rejected the loan request.