Credit for couples – why is it worth taking out a loan together?
Obtaining a loan as a couple is generally a good way to gain financial flexibility. Your chances of loan approval increase significantly if you mention your partner on the application. This improves your creditworthiness, allowing you to request a larger amount and avoid loan rejection. The prerequisite is that you both live in the same household.
Thanks to your shared income, you have more financial resources for loan repayment, as you can also share common expenses. Banks generally take your partner into account, even if you are not married, as long as you are in a registered partnership.
In short, this means that by mentioning your partner on the loan application, you significantly improve your creditworthiness and your chances of receiving a positive loan decision.
Solvency
Borrowers' creditworthiness plays a crucial role for banks when granting credit. Having an additional person involved often increases the bank's confidence that the loan will be repaid on time. Therefore, whether you're applying for a new personal loan or looking to increase an existing one, taking out a loan together can significantly boost your creditworthiness.
If both partners have a good credit history, this can lead to better loan terms. Banks often assess creditworthiness based on the combined income and financial obligations of both partners. This can allow you to obtain a larger loan amount or pay lower interest rates.
Responsibility
In principle, a joint loan also means joint responsibility. This means that both partners are responsible for the entire loan amount. This can have advantages, as the bank has greater security and may be able to offer better terms. On the other hand, both partners must be aware that they are equally responsible in the event of payment difficulties or default by the other partner.
However, it often happens that the loan agreement only names one of the two partners. Although your spouse is taken into account for the creditworthiness assessment, they assume no responsibility for the loan in this case. If the loan agreement is therefore concluded solely with you, you are solely responsible for repayment as the borrower.
An exception may exist for very large loan amounts, typically starting at €80,000. In such cases, a bank might require additional guarantees or consider a co-signature from the other partner to secure the loan.
Death of partner
When a spouse dies, the question often arises as to whether the surviving partner is responsible for the deceased partner's debts. In principle, both assets and debts are passed on to the estate. This means that loans also fall under this category – provided that both partners jointly signed the loan agreement and the surviving partner is considered a true borrower.
In such cases, the surviving partner bears a share of responsibility for the loan. This occurs because both partners had a genuine interest in the loan. This is an important point that couples should consider when deciding on a joint loan. Careful planning and, if necessary, appropriate insurance can be helpful in minimizing the financial burden.
Unmarried couples
Taking out a joint loan can also be an option for unmarried couples. Some banks offer this option, which is primarily used to optimize household budgets. The advantage lies in the fact that monthly expenses can be split between the two partners, potentially allowing them to borrow a larger amount.
If, in addition, the other partner has a strong financial situation, not only do the chances of receiving a positive loan decision increase, but it's also possible to obtain better rates and terms. With two incomes and shared expenses, the loan amount can be increased, which may lead to more favorable terms, depending on the bank.
Finally, you can claim the loan on your tax return to deduct the interest payments. For couples, therefore, borrowing together can be a very sensible option.
Joint loan for couples: how to obtain a joint loan?
If you wish to take out a joint loan with your partner, you must first obtain their consent. This consent can be given verbally, as your partner does not necessarily have to co-sign the loan agreement, since joint liability is not desired. Next, you can complete your online loan application with your partner's details so they can be considered during the creditworthiness assessment.
You must then verify your information and your partner's details with the relevant documents, such as a copy of your ID and a payslip. The rest of the loan process then proceeds as usual:
Submit the loan application online.
Sign the loan agreement.
Receive the requested loan amount in your (joint) account after the 14-day cooling-off period has expired.
