A credit guarantee is always based on the interests of the banks. Because they are always pleased when a guarantor accompanies the borrowing.
But even for the borrower, a guarantee brings various advantages.
Credit with surety – benefits
A guarantee brings various advantages. So this will ensure that the cost of the loan decline. A guarantee always provides additional security for the loan. It reduces the risk of default, which the banks reward with a low interest rate. Several hundred or even a thousand USD can be saved in the end. On top of that, a guarantee in many cases allows you to borrow large amounts of credit. This is very important, especially for real estate purchases. Long maturities are often only possible if a guarantor secures the loan.
Credit with guarantee – Disadvantages
The disadvantages of a loan with a guarantee relate mainly to the guarantor. This has to take a lot of responsibility. He is fully liable for the credit. If the actual borrower can not repay the loan, the bank will always turn to the guarantor. He then has to stand up for the debt of the borrower. If he can not, he is just as much a debtor as the real borrower. This puts a lot of responsibility on the guarantor, which many consumers are not aware of in advance. A guarantee should therefore only be envisaged if the guarantor knows exactly what he is getting into. In addition, a very good contact with the borrower should exist, so that possible difficulties can be discussed in a timely manner.
When does a loan with a guarantee make sense?
A loan with a guarantee is always meaningful if borrowing is made possible by this step. Many consumers have a weak credit rating and wonder if they get a credit rejection. With the help of a guarantor, such a rejection can be circumvented. In addition, a guarantor is worthwhile if it can improve the conditions surrounding the loan.
Low interest rates and flexible repayment terms are only possible if the creditworthiness of the borrower is appropriate. With the help of a guarantor, the creditworthiness of the entire loan can be significantly improved.
Banks also want big loans always backed by a guarantee. Big loans have long terms. Many years nobody can survey in advance. With a guarantee, security comes into the loan and the repayment, which in turn will also affect the cost of the loan.
The taking of a loan with surety
To take out such a loan, you need a guarantor in the first step. So a person who you trust the responsible task of a guarantee.
Choose your guarantor wisely. He has a great responsibility and should be aware of it. Since the guarantor must sign the loan application and the loan agreement, it is important that he is involved from the outset in the recording. He must provide all credit-related documents and make them available for the loan application. In the case of an online loan, he must also go through the identification of his person. This means that the guarantor must also take part in the PostIdent procedure. If all this can be ensured, it is about finding a suitable loan offer.
Since, in principle, all banks are happy when a guarantor supports the borrowing, it should not be a problem to find suitable offers.
Cheap loans with guarantors
The banks and savings banks like to reward their borrowers once they apply for a loan with a guarantee. Because such loans have a low default risk. The credit quality of the loan is high, which is then rewarded in the form of favorable interest rates. For this to be the case, it must be stated from the outset that it is a loan with a guarantee.
With the help of our comparison calculator you can search for suitable offers. If you have found an offer that interests you, then click on the link to the provider and complete the loan application.
Note on this that you want to take the loan together with a guarantor. The lender will then take this into account when calculating the conditions.