Everyone has to make bigger purchases once in a lifetime. Unfortunately, it is often not easy to pay the costs out of your own pocket. Nowadays there are different types of loans so that a family loan can also be taken out. Spouses with children and those who live in a cohabitation are very happy to use this loan because it offers many advantages. Before you sign a contract, there are a few things to consider.
Loan Admission – How Possible?
Basically, the family loan can be taken out at any bank, provided both partners have sufficient credit. Banks like it very much when two people sign a loan, because that way the loan is doubly secured. As a result, the risk of default is very low, which will always convince the bank to approve a loan application. Both have to submit the application and sign it. The house bank is not always the best choice. To find out, a comparison on the Internet should help.
Requirements that must be met
With a family loan, at least one of the borrowers must have a fixed income. The other salary should best be able to cover the fixed costs so that it does not have to be attachable. A high salary is often enough, but there must be no negative entries in the Credit bureau.
This has a negative impact on creditworthiness and may lead to a rejection. However, should the creditworthiness be given, different types of loans can be taken out. This offer ranges from small loans to normal installment loans with several thousand USD. Child benefit is not counted as income, which many think.
What should you pay attention to?
Even if a loan sounds tempting to families, it should always be borne in mind that both borrowers are also entered in the Credit bureau. In addition, both take on debts at the same time, which is not inconsiderable. If the partnership no longer exists and the loan is still running, then both borrowers are responsible for the loan even after the separation.
If one borrower stops paying, the second borrower must automatically step in for the installment payments. This can often lead to arguments and a lot of trouble.