In everyday life, there are always situations in which financial expenses have to be managed that were not actually planned. Purchases such as a new car, a new washing machine or other unplanned purchases must then be done as quickly as possible.
Often it is not possible to manage these expenses from the available financial resources. A loan with two borrowers can be a good alternative to raise the financial expense.
Preparing for the loan application
First, your own financial situation should be carefully analyzed. It helps to create a statement of income and costs. In this, all income and current expenses are compared in detail. If both parties live together, this analysis covers the situation of both parties. In this way, it can be determined in advance what amount of credit with 2 borrowers is necessary and what additional monthly debit, in the form of installment payments, can be applied over the intended term.
Submit the loan application
A credit application can finally be made with the prepared list. The available figures also convey to the lender that the applicants are aware of their situation, which creates a basis of trust in the first interview. It is highly recommended to obtain several offers in order to find the best possible one for your own situation. Comparative elements should be the term, the monthly installments, the effective interest rate and any applicable processing fees.
Advantages and requirements for 2 borrowers
The loan with two borrowers offers the lender additional security. The risk is reduced so that lenders often offer special conditions. This means that this form of loan often has more favorable terms than a loan with only one borrower.
However, both borrowers should be able to meet some requirements. The age of eighteen must be over. In addition, regular income is expected from both borrowers. The employment contracts should have existed for at least six months and should be outside the trial period.
During the credit check, which usually also includes a Credit Bureau query, there should be no negative entry. If there is a negative entry, this can jeopardize the loan approval and worsen the credit terms through a risk premium. If these elements can be met, the borrowers are usually accepted and a loan with 2 borrowers can be granted.