Nowadays, loans are offered on a wide variety of terms. Not only that the loan amount, term and type of loan can be very variable. The question of whether a loan should be taken out without a co-applicant or rather with a co-applicant can also be answered individually. This always depends on the requirements that the borrower brings with it and the type of loan that is to be taken out.
Most consumers prefer a co-applicant loan. In contrast to the lending banks. You like to see it again when the loan is secured by a co-applicant so that the risk of default drops to the lowest possible level. Especially when a married borrower requests a loan, it is urged that it be taken up together with the spouse. However, the banks have no chance of enforcing their desire to borrow together. However, you can refuse the loan if you believe that it is not sufficiently secured without the partner.
When can a loan be taken out without a co-applicant?
Many loans can be taken out without a second co-applicant. Small loans of all kinds and consumer loans would be a very good example of this. And even if the applicant’s creditworthiness is particularly good, there is hardly any reason for the banks to only grant the loan with a co-applicant. However, the decision is ultimately always up to the banks. If this does not work in the borrower’s favor, the borrower must see how he can improve it. Because the banks and savings banks will not deviate from their course and will not reconsider their decision.
If spouses should apply for a loan together, the banks and savings banks will refer to this in advance. Each borrower can then decide whether they want it or not. If he decides to do so, both partners sign the loan. If he decides against this, he must look for loan offers that do not include this clause. Since the selection of loans is very large, it should not pose any problems to find loan offers that can be taken up completely independently and without support.
When will it be difficult to take out a loan without a co-applicant?
It looks a little different if the creditworthiness is not sufficient to take out a loan without a co-applicant. Then you will bite the bullet and have to accept the additional support. Otherwise, without this, there will be no loan agreement.
The same applies to large loan amounts and loans with very long terms. The banks traditionally only award these if there are two applicants, since the risk of default would be too high for one applicant.
By the way: If you want to take out the loan on your own under all circumstances, you have to ensure that other collateral is available. Material collateral such as real estate, valuable jewelry or antiques could be helpful. On top of that, the credit request can be adjusted so that it is accepted even if there is only one applicant. Such as, for example, for small loan amounts or consumer loans that consider the consumer goods acquired as security.