Taking out a loan for or with a partner is two different kinds of shoes. Couples promise to stand up for each other at the wedding ceremony. – But even in legal marital status, the independence of contracting remains protected for a good reason.
There is no good reason or bad reason for credit. In a partnership, whether married or without a marriage license, people stand up for one another and pursue common goals.
Our credit guide for partnership loans would like to show you the advantages of joint borrowing, but also the disadvantages. How you decide in the end is up to you, only blue-eyed you will not make your decision.
Take out a loan with your partner – achieve common goals
Few people have such a good credit rating that financing big wishes, for example building a home, works without any problems. It is easier for couples to take the big step and to fulfill their family dream of a small house in the countryside. Taking out a loan with a partner means combining personal creditworthiness in order to achieve a common goal.
If both borrowers work, the large loan for building a house is also a manageable risk. Money for secure payment by installments comes from two sources of income. Home ownership represents substantial property. In the event of a separation, it can be sold. Both partners are expected to get back at least most of their money and are likely to be debt free.
Although they were financed jointly, not only do both bear the risk together, but each is a beneficiary. The joint borrowing in such a case is neither reprehensible nor blue-eyed, it corresponds to the desire for a common future. Taking out a loan for the partner, on the other hand, leads to a completely different situation.
Misunderstood charity – getting into debt for the partner
Credit institutions are increasingly demanding that a guarantor or co-applicant stand up for someone else’s loan. The self-employed are particularly often not given credit by their bank unless the partner signs with income that is subject to social security contributions. It is often even cheaper when the partner takes out the loan alone and then lends the money.
It is humanly understandable not to leave the partner in the rain and to apply for the required loan in your own name. Human understandable, but not reasonable. On the one hand, it can violate credit regulations that only allow borrowing to meet one’s own goals. In the worst case, besides the financial damage, there is also the risk of being notified of credit fraud.
The typical argument in forums, the partner is not to blame in a financial problem, that does not pull. Responsible management automatically excludes “no fault of your own”. Responsibility for a company means considering every conceivable risk in advance and excluding the shipwreck. Of course, there are always problems with self-employment, which is exactly why the bank does not give a loan.
Liability for someone else – there is little reason to believe it
Taking out a loan for your partner, there are very few plausible explanations for this. Only someone who cannot maneuver himself into an emergency can really help someone else. Protection of personal financial security is therefore always a top priority. Small risks are justifiable. For example, one of the children is in training and needs a car.
Of course, no new car is financed, but a purpose-oriented, inexpensive vehicle that the trainee can afford from his salary. If he puts it in the trench, a few USD are gone, but his own financial security has never been risked. If a loan of 1,500 USD was taken out for the student vehicle with a term of 24 months, the household budget must raise 63.79 USD per month.
Thinking in a similarly compassionate way would be appropriate for a funeral loan for one of the partner’s parents. The survivor receives no credit with the pension. He is also unlikely to be able to pay the installments. Humanity for real family blows of fate has never led to ruin. But taking out a loan for your partner just because you are self-employed can cost your head and neck.
Help for self-help – support for loan search without a partner
Borrowing together when the credit risk is not actually intolerable can be avoidable. If regular credit providers request that the partner take out the loan, there is an alternative solution for almost every creditworthiness situation. Seriously working banks for real risk loans even reject the guarantee or the co-applicant in the loan terms.
The most obvious example of this is the foreign credit without Credit Bureau, which is only granted to people who are creditworthy on their own, despite the lack of Credit Bureau creditworthiness. Taking out a loan for the partner because he is self-employed would be avoidable through private investors or banks willing to take risks. Seriously working credit portals, such as Good Finance or Good Lender, open up fair credit opportunities for the self-employed.
If you do not take out a loan for your partner because they have problems with self-employment, you will remain financially efficient. With no financial risk, you can help by telling who can lend to the self-employed without guarantors or co-applicants. Support the partner with your workforce, but remain financially independent so that your life together does not get out of joint.