Credit with 2 applicants

There are several reasons why the bank insists on a second applicant for lending. In most cases, the creditworthiness is insufficient and should be covered by the second applicant. However, it can also be the loan amount that is so high that the repayment of the loan cannot be carried out by just one person. The bank checks the creditworthiness of the customer with every credit request.

This is how the Credit Bureau query is carried out, the income checked and also the permanent employment determined. The income includes all income such as child benefit, maintenance, income from leases or rentals or other regular income. This income is compared to the customer’s expenses. These tests are also carried out for a second applicant. The bank calculates a flat rate from the documents that are available to it, which should be applied to the cost of living. If there is still a remaining amount, this can be used as an installment for the loan with 2 applicants.

2 applicant credit

2 applicant credit

A loan with two applicants not only increases the credit opportunities, but for the bank, the second applicant means additional security, which goes hand in hand with a low interest rate and favorable conditions. The second applicant does not have to come from his own family, but can also come from a circle of friends or acquaintances. It is only important that he has a good credit rating, has a regular income that is above the attachment limit. The dependence of both borrowers on one another could be seen as a disadvantage.

If the two borrowers are mutually liable, it can happen that one of them stops paying and withdraws from the loan agreement. In this case, the bank takes the second borrower into recourse. A loan with two applicants should therefore be clarified in advance whether a close credit connection can work in the long run, how long it will last and, above all, how trustworthy the other borrower is. Only then is the 2 applicant loan a good option.

The outlook

The outlook

Banks can also request a second applicant if their creditworthiness is insufficient, if their income is too low to guarantee permanent installment payments. If there is a negative entry in the Credit Bureau, the loan application cannot be approved. But with a second borrower, the banks can put aside the financial concerns. The bank also draws up a household bill for a second applicant who is required due to the lack of creditworthiness. This can be used to calculate the cost of living and the plus for the installments. A second applicant is always required if the bank considers the credit default risk to be high. In order for the chances of a loan to exist, a second applicant is included in the loan agreement. The bank does not determine who is listed as a second person in the credit agreement.

If a couple takes out a loan, it is two people. The same also applies to younger applicants, which can be the parent. The second applicant can be viewed as a guarantor or co-applicant. Therefore, it is important who you ask for borrowing.


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