Multi-person Loan – Check Alternatives Now

A multi-person credit can increase the creditworthiness of the borrower. There are several reasons that require multi-person credit. This may be the wish of a couple, but also emanating from the borrower. The bank sees a positive effect with two or more persons as the credit default risk is reduced.

Briefly survey the most important

  • Collecting credit together increases your credit rating and leads to cheaper interest rates
  • From a moral point of view, the credit for two persons is advisable only if it pursues a common goal
  • Check – without any obligation – whether the joint credit pays off for you
  • Simply submit a loan application for the comparison – without risk

Multi-Person Credit – Overview

Multi-Person Credit - Overview

Mostly a loan is taken out by the borrower and his partner. But even financing for joint projects of parents and siblings or, where appropriate, children of age is not uncommon. In general, it is always possible to take out a loan with several people without a relationship or a close bond. The practice shows the borrowing usually with two persons.

It does not necessarily mean that a loan has to be applied for together. Who now applies for a loan with two people, but only one person has a regular income, the credit can succeed if a second solvent applicant enters into the credit agreement. The bank will check the solvency of several persons. Often, however, it is also a high loan amount and a joint project where two or more people sign the loan agreement together.

Credit with several persons – consideration of the banks

Credit with several persons - consideration of the banks

Sometimes smaller loan amounts are not enough. Anyone who wants to buy a new car or has the dream of a home in mind, often requires a loan in five to six figures. However, problems can arise when the income is insufficient to justify lending. Not always the credit rating is crucial.

Basically, it’s the loan installment that needs to be paid month after month. Therefore, the revenue must be correct to the expenditure. The higher the excess that arises after deducting all costs, the higher the likelihood that a loan will be approved. Now, if the loan is taken, and there are several people work, the bill looks different.

Thus, more income per month, the credit rating can increase, so that a loan rate is no longer a major burden.

Credit with several people – prospects

Credit with several people - prospects

It makes perfect sense, if additional persons sign the loan application, that the default risk decreases. However, these people must have a high solvency. For example, unemployed or recipients of Hartz IV or other social benefits are not accepted as customers or as additional borrowers. With a multi-person loan, borrowers borrow the loan on an equal footing.

This means that they are only taken into account in an emergency. If a borrower can not pay, the other person must pay the loan. If this thing is too tricky, then maximum amounts can be contractually established. In any case, it is better if the money house is informed.

Multi-person credit – better a guarantee

Multi-person credit - better a guarantee

If you can not get a loan without additional collateral like several people, you can also try a solvent guarantor. The guarantor must have a sufficient income, a stable and secure employment and a clean Schufa. The bank will examine this comprehensively. The guarantor is not a second loan, but he gives a guarantee. In principle, however, it is the same process when it comes to an emergency, the guarantor is taken to the duty.

The bank must inform the guarantor but also several borrowers about the risks. For example, in the case of guarantors, the guarantee is entered in the Schufa, which can reduce its credit rating.

Multi-person credit – benefits

Multi-person credit - benefits

When borrowing with two or more persons, borrowers are jointly and severally liable in the event of a loan default. Banks believe that multiple salaries increase credit security.

The bank’s budgetary statement looks that the income available is sufficient to pay a loan installment. If a multi-person loan is chosen, a shorter term can be chosen, which reduces the overall cost of the loan. But not only the costs, also the interest rate can be cheaper. Banks often raise the interest rate when customers choose a longer term.

The credit-based interest charge will always be more favorable with another person. Even with credit offers that have a fixed interest rate, banks provide a discounted effective rate. Even if the second applicant has only a small salary, the joint application for credit can have a more favorable effect.

Multi-person credit – contract terms

Multi-person credit - contract terms

Anyone looking for a cheap provider with a credit comparison should know that the terms and conditions for a multiple person loan are the same as for a single borrower. The most important decision-making aid is always the annual percentage rate.

But not only the interest rate should be in focus, but also flexible repayment options. Thus, free special repayments should be allowed without prepayment interest being charged. Likewise, at least once or twice a year should be allowed a pause break. It is also important to choose the right duration.

Banks often raise the interest rate if a long term is chosen, but there are also banks that operate at a single interest rate. The credit comparison also shows the amount of credit. Should it appear too high to the customer, it can be lowered with a longer term.

Conclusion:

It may also happen that no credit with several people comes about. Either because people can not be found who sign the credit agreement, on the other hand, because you do not want to let strangers look into his finances. Then there is alternative such as the mention of a solvent guarantor. If there is no guarantor, so could with other collateral credit succeed.

Think of a property that could be used as collateral. Also lendable insurance or savings can be accepted. Banks insist on such collateral if their own creditworthiness is insufficient or if a larger financial project is sought.

Loan for Terrace – on Request Now Even with Promotion

A credit for terrace can be a modernization loan or a simple installment loan. If you own a property, you also want it to remain habitable and safe. In addition, the property should not lose any value. This often involves extensive modernization work. The renovation of a terrace is also associated with costs.

Credit for Terrace – Overview

Credit for Terrace - Overview

Anyone who owns a property is often unavailable for renovation work. The terrace which is used in the summer as a second living room, shows first traces of use. The floor tiles were not as unbreakable as announced, here and there they need to be repaired. But many real estate owners also want to rebuild a terrace.

The passage from the living room to a terrace would make the garden even more beautiful. However, these works are associated with costs. Costs not everyone can pay from reserves. Then we are looking for a loan.

But which is the right one. A modernization loan can help. In general, modernization loans are no different from consumer loans. For both types of loan, the bank provides certain loan amounts. The customer pays interest for this. When the loan amount is paid, it is paid with monthly loan installments.

The credit for terrace – the modernization loan

The credit for terrace - the modernization loan

The modernization loan has some special features. The credit for terrace is earmarked. This means that the approved loan amount may only be used for a specific purpose. This purpose was recorded in the loan agreement.

Although the exact work is an issue in lending, but are not enshrined in the loan agreement. As long as the loan amount for the modernization or the building of a terrace at the property use, can be freely disposes of this credit line. The earmarking has but a positive effect. The interest rate of this loan is far below that of a installment loan, for example.

However, this loan will only be given to real estate owners. Tenants are in any case not entitled, without the owner’s consent, to make structural changes to a property. Therefore, they are excluded from the banks in the lending. There are also banks that require the owner to own the property.

Credit for Terrace – Equity Necessary?

Credit for Terrace - Equity Necessary?

If you need a higher loan amount, you may have to prove equity. Thus, part of the estimated costs must be paid out of pocket, so that the rest can be financed with a loan.

As a rule, an equity interest of 20 to 30% is required. Now, if the terrace costs about, once assumed, 25,000 euros, the bank could ask for a share of 5,000 to 7,500 euros, so that a modernization loan can be included. A hedge is not necessary in most cases, however, with very high loan amounts, the bank may require a registration in the land register. This mortgage allows borrowers to receive a favorable interest rate.

This could cause many to voluntarily offer this security to the bank, even if it incurs additional costs.

Pros and Cons – Credit for Terrace

Pros and Cons - Credit for Terrace

The advantage of a modernization loan is the favorable interest rate through the earmarking. It can be provided a very flexible term and pay sums. By hedging with an entry in the land register in turn lowering interest rates. The disadvantage is that the loan amount can not be used freely, just by earmarking. Required equity lowers liquidity. The registration of a mortgage causes costs.

Credit for terrace – application, payment, calculation

Credit for terrace - application, payment, calculation

Before a modernization loan is requested from the bank, the costs must be calculated precisely. This is important on the one hand to determine the need for capital, on the other hand banks without recovery plan often did not provide credit.

Subsequently, a loan comparison, such as a loan calculator, should be used to search for loan offers. You simply enter the desired loan amount and the term. The intended purpose is “modernization / renovation”. Immediately, the loan seeker receives an overview of all offers, with the best ones leading the list. For modernization loans, banks provide between 10,000 and 50,000 euros, but there are banks that grant up to 80,000 euros as a modernization loan. Depending on the loan amount, the term can be 12 to 120 months.

Credit for Terrace – Interest Rate

Credit for Terrace - Interest Rate

The credit rate should be chosen to be affordable. This can happen with a change in the runtime. The interest rates vary widely. So there is an interest rate of 2.75% to 10.99% and often higher.

The longer the term, the higher the interest rate. Loan seekers should know that in 2014 no processing fees for a loan may be charged. As a rule, banks stick to the verdict. When comparing credit, not only the interest rate should be the focus, but there are other factors that are important.

Credit for terrace – terms of a loan

Credit for terrace - terms of a loan

For modernization loans but also for other types of loans, free special repayments should always be allowed. Special repayments are additional payments that borrowers can make within one year.

Just important for the employee who receives additional payments from the employer over the course of a year and would like to pay them on the loan. As the bank escapes interest, it can charge a prepayment penalty.

Usually about 10% of the loan amount per year is allowed as a special repayment. Thus, the loan can be paid faster without disadvantages arise.

Anyone who has found a provider with the credit comparison can apply for the credit directly via his website online. Often, a preliminary loan commitment comes within seconds, but it will only become final once the creditors have the credit records.

Credit for terrace – alternatives to the modernization loan

Credit for terrace - alternatives to the modernization loan

Although a modernization loan is aimed at the interests of a client, he wants to maintain his property. Nevertheless, it can often be better to look for another loan.

Since there is the installment loan, which makes do without earmarking. However, interest rates are higher in the installment loan than in the modernization loan, but borrowers can freely decide on the sum.

If you want to buy other things for the renovation or the construction of a terrace, such as new furniture, this can do with a installment loan together. There is then no need to take out another loan, as would be the case with a modernization loan.