On the one hand, lending rates for many types of loans have been at a very low level for quite some time. Thus, consumers can not only get construction loans at low interest rates, for example, 1.5 percent, but also installment loans have generally become significantly cheaper in comparison in recent years. However, on the other hand, there are still quite a few credit seekers who have bad cards with an ordinary bank when it comes to taking out a loan. In the vast majority of cases, it is the lender’s lack of creditworthiness that makes borrowing from the bank impossible. Above all, the money cash information can significantly deteriorate the creditworthiness of a customer, if there is a negative entry to find.
Improve opportunities through second borrower
As before, it is the vast majority of German credit institutions that use the money cash information to assess the creditworthiness of the customer. In addition, it is first and foremost the income that is the second characteristic that determines the overall rating of the creditworthiness. If one of these two credit criteria is deficient, for example in the form of a negative money cash entry or a low income, the desired borrowing is often difficult.
However, there are some ways in which a credit rating that is still inadequate.
The basis of money cash and income can be improved to such an extent that the bank is finally ready to lend. One of these options is to provide collateral so that the credit default risk does not fall, but the bank could compensate for any later open claims through its existing collateral. The second method, how the credit rating can be influenced to a sufficient extent, is a second borrower. Recent research has shown that joint borrowers can often benefit in two ways at once.
First, banks are more willing to lend if there is not one borrower but two borrowers.
In addition, the research also found that in this context, joint borrowers are offered even more favorable terms. This is quite consistent, because from the perspective of the bank, the second borrower reduces the credit default risk, so that the interest conditions can turn out to be customer-friendly. Most banks handle it so that they make the amount of the loan interest to be assessed depends primarily on the creditworthiness of the customer. In this respect, it can also be financially worthwhile to think of a possible borrowing of a second borrower. Mostly it will be the spouse or a business partner if it is a commercial loan.