Bank offers loan with guarantor.

A loan with a guarantor or co-applicant noticeably helps personal creditworthiness. Common wishes can be fulfilled without risking the loan refusal.

We want you to get your desired loan easily and at low interest. Find out the benefits of joint loan liability. Nevertheless, we don’t want to sweep the risks under the carpet. A loan guarantee or partnership loan should not be thoughtlessly concluded.

If a lack of creditworthiness is the reason for looking for a loan with a guarantor, we call offers that can be approved without a guarantor despite the lack of creditworthiness.

Loan with guarantors – stand for each other, finance together

Loan with guarantors - stand for each other, finance together

Standing up for each other is the promise that couples make when they get married. Parents often give it to their children at the cradle. A loan with a guarantor or a joint application for a loan has the same meaning as the family promise. Commonality when pursuing large goals is often the basic prerequisite for achieving goals.

Building a house would be a typical example of a couple’s common desire to build the community future. Very few could afford their own house without a loan. Neither would each partner be sufficiently creditworthy to receive the funding. To achieve the goals together, it is necessary to combine creditworthiness as a resource for loan approval.

Common desire – shared liability

Common desire - shared liability

Those who read carefully note the emphasis on  the commonality of the objective. Unfortunately, credit institutions and borrowers are increasingly taking loans with guarantors or co-applicants for granted. A glaring example would be the Cream Bank installment loan. Married borrowers will only receive an installment loan above USD 5,000 if the partner also signs.

Of course, every credit institution has the right to set its own credit terms. Each borrower has the right to turn around on the sales and get the loan from another provider. Everyone should exercise this right for themselves when making unreasonable demands. A bank sensibly requires a co-signer if the credit risk is too high.

Why a housewife, without her own income, should sign a loan together with her husband, a senior official with the best credit rating from 5,000 USD, is pointless. At any other bank, this borrower would literally roll out a red carpet without a guarantor. Cream Bank’s credit terms have nothing to do with the independence in the marriage contract that the legislator advocates.

Big wish and small credit rating – loan guarantee

Big wish and small credit rating - loan guarantee

Arbitrariness is unfortunately not the only reason when a bank proposes a loan with a guarantor. It is much more likely that a credit institution has checked the credit request seriously and has doubts about the security of the loan. If the applicant lacks the personal credit rating for the loan approval, the loan request is rejected without a co-owner or any other additional security.

Of course, the loan rejection primarily serves the credit institution. Credit security has been a top priority since the start of the USD crisis. The clerk protects his bank from a credit default that is at least not improbable. The borrower should only see the decision negatively. The demand for a surety should rather provide the impetus to rethink the loan request.

The bank’s offer to accept a loan with guarantor shows the willingness to lend, but it is also a warning. If a professional calculation reveals risks, then the loan guarantee is a serious risk for the co-owner. It can make more sense to opt for an alternative offer. Perhaps it is enough to pay a higher interest rate. This is still better than exposing the guarantor to a discernible liability risk.

Offers for loan without guarantor – regular loan

Offers for loan without guarantor - regular loan

It doesn’t take long to look for regular loan offers without guarantor, even with a slightly increased credit risk. The same credit comparison, which shows the cheapest interest, also leads to loan offers at the credit-dependent interest with a higher interest level. Due to the low advertising interest rate, the providers show that they would be willing to accept credit risks for a reasonable interest premium.

If the guarantor is left out, it may be a little more expensive, but personal responsibility is preserved. Another option would be to offer property security instead of a credit guarantee. For example, a capital-building life insurance policy can always guarantee the repurchase value for the desired loan. Another advantage of security is that personal over-indebtedness through the loan is almost impossible.

If the borrower stumbles, the poorly interest-bearing life insurance may be gone. But at the same time a large part of the loan has been repaid. This solution is better than forcing a friend or relative to pay with a guarantor or co-applicant.

Loan without guarantor with negative Credit Bureau

Loan without guarantor with negative Schufa

It is often claimed that a loan with a guarantor or co-applicant is only possible if the Credit Bureau has a negative entry. The well-known international loan without Credit Bureau proves the exact opposite. The credit process even explicitly excludes a guarantor for credit protection.

An example of how a loan with guarantors can be avoided with a larger loan amount would be private lending. With Good Finance or Best Lender, you can get serious, low-interest financing even without a surety with a negative Credit Bureau.