Although lending rates are currently at an all-time low, we know a trick on how to get your desired loan from the bank even cheaper now: Apply for the loan with a second borrower!
Who the second applicant is – so whether you take out the loan with your spouse, a friend or acquaintance is generally irrelevant to the bank. For the bank, it is only about the additional security that the second borrower represents in the event of possible loan default.
The second applicant increases credit security for the bank
In contrast to mortgage lending or car loans, installment loans are usually only covered by the so-called garnishment clause. If the borrower is no longer able to transfer the due repayment installments to the bank during the agreed term, the institution can pledge part of the borrower’s wages or salaries in order to settle the outstanding loan debt.
If two consumers apply for a loan together, the bank has the right to pledge both salaries in such a case. For this reason, the second borrower increases the security for the credit institution that it will not “sit” on the debt in the event of possible loan default. However, this is only the case if both applicants to the lending bank can demonstrate regular and sufficient income, as well as an impeccable lender file. However, an unemployed or low-earning second borrower does not increase security for the bank.
Higher security often leads to more favorable loan terms
Since the security of lending is often directly related to the terms of the loan, the second applicant often ensures that the bank grants the loan at lower interest rates. If you want to make a real bargain despite the current low-interest rates, the best way to apply for your dream loan is with a second borrower.
Why not put some more money in your account for your extra needs or as a financial buffer.
- Start your credit request now (this does not result in a contract).
- After checking your request, the money will be in your account after 4 days.
- All you have to do is accept our offer. If not, then not. No catch, no upfront costs.