With good credit, it is usually not difficult to apply for a loan without a spouse. In principle, a second applicant is only necessary if the bank has doubts as to whether a potential customer can meet his payment obligations on his own.
Make a loan application
Anyone wishing to apply for a loan without a spouse must first provide extensive information about their financial circumstances. These include both income and monthly expenses for rent, possible maintenance, other loans and other expenses. Even if a car is present or not can play a role in the credit decision, as for the maintenance of additional costs. Another important aspect is whether the customer can have certain collateral, such as life insurance, real estate or other assets.
This information is used by the bank to assess the risk that it would incur when lending. In addition, the customer usually has to agree to a data query from credit bureau. In this case, the financial institution receives a credit score that provides information about the applicant’s creditworthiness. If the examination of all data leads to a positive decision by the bank, a loan without a spouse can be taken up. On the other hand, if there are doubts that the customer is capable of repayment, the bank may require a second applicant to sign the contract as well. However, this does not necessarily have to be the spouse; for example, one parent may also act as the second borrower.
Benefits of having loans with an applicant
Anyone who takes out a loan without a spouse is fully responsible for this alone. This is not only advantageous for couples working with separate accounts, but can also avoid disputes due to the money. If the loan can not be properly repaid due to financial difficulties, only one partner has to bear the consequences. Thus, the other remains fully competent, even if it comes to a negative credit bureau entry or the like. If, on the other hand, the loan is not concluded without a spouse but together with the spouse, then in principle both claimants are responsible for the debts, even if the spouse acts only as a guarantor, in order to allow borrowing at all.
Therefore, even if joint purchases are to be made from the amount received, it is better to take out the loan without a spouse and to clarify among each other how the repayment should be arranged. Finally, in order to collect the repayment installments, it is not necessary to register the partner officially as a borrower in the contract. This should only happen if the bank is otherwise unwilling to grant a loan.