When one is married, loans are often given to the married couple, speaking to both persons. Thus, both spouses commit to contribute to the repayment of the loan. However, it is quite possible to apply for a loan and get it approved without obliging the spouse.
Apply for a loan without a spouse and get approved
In particular, the creditworthiness and the credit bureau information of the applying person play a role in the approval. If you have a good income as an individual, little or no debts and fixed costs that allow a regular and reliable repayment of the loan in small installments, it is very likely that the loan will be approved by the bank.
Since spouses often have a higher credit rating than a partner alone, care should be taken to have a good credit rating if you do not want to burden your spouse with the loan.
When can the co-responsibility of the spouse be waived?
If the spouse has a bad credit rating and possibly many debts, he is usually not a hedge for the bank, but an obstacle, which is why in these cases often only one spouse can finance them. Other prerequisites for receiving a loan with a spouse are things such as financing a gift that the other spouse is not supposed to know, or that the applicant’s personal hobby should be paid for with the loan.
As a rule, smaller loans, which in each case have to be repaid in small installments, are approved more than large loans with high installment payments and high interest rates. With dummies of up to 5000 euros, it is usually no problem to waive the complicity of the spouse.
Which one should not do under any circumstances
What should be done under no circumstances is to impersonate the application as an individual who is not married. At the latest when examining the application by the bank, this notes that this is not true.
Not only does this mean that the loan will not be approved, but also that you may be notified because the counterfeit data is criminal.
The compensation for the non-burden of the spouse
If the spouse is not to be burdened with borrowing, then this is a greater risk for the bank. Therefore, it is usually the case that the bank requires different security from the individual. Either another person, together with the applicant, can sign the application and become complicit, or another security with the bank is agreed.
Since the spouse’s second signature serves as a guaranty and means additional security for the bank, another form of hedge is identified with the claimant.
For example, this can be done with a higher interest rate, which is why you have to expect to only get the loan if you are prepared to pay a higher interest rate than originally suggested.
When is not a single loan possible?
Even if there is the possibility of another hedge, there are cases in which the bank usually does not waive the complicity of the spouse. Specifically, these are things that should be co-financed with the loan. Thus, in a real estate purchase or a car purchase, which takes place through a loan, usually the spouse is involved and the loan can not be taken alone by a spouse.
5 tips on credit without a spouse
1. Sufficient collateral
If you want to keep your spouse out of a credit business, you must have sufficient collateral. For this purpose, various items can be considered. For example, a car can be used as a hedge for the loan. Even jewelery, artwork and expensive pieces of furniture can be used in this case. It is a matter of elementary importance.
There must be a separation of property, because all things belong to the couple in common, regardless of the borrower and parties responsible for the repayment. Ideally, a separation of property can be agreed in advance, but this should then be secured by a lawyer accordingly.
2. Agreement on the community
Similarly, a contract that Einstehgemeinschaft can be completed when the spouse is to be kept out of the contract. In this it is important that it is narrowed down which kind of business is responsible for and for which partners. Therefore, in such a document loans should be excluded, but with reservation.
In such a case, banks will lend money faster if it has been agreed that, for example, after the death of the spouse, the second party will intervene. In some cases, a marriage contract may also be helpful if the modalities have already been agreed upon in this case.
3. Open a separate account
To take out a loan without a spouse, a separate account should be set up. If the installments are debited from a checking account to which both persons have access, then both are responsible for the repayment of the money. This also applies to possible wage seizures, because the money in the account is seized up to the free allowance, regardless of the person from whom the revenue.
Thus, separate accounts can provide a high level of security, even if the payment is in default. In the same breath, the salary of a person should be redirected to the respective account, so that even this amount may possibly fall to a garnishment.
4. Tips for the self-employed
For self-employed persons, it is often appropriate for both spouses to sign a contract, as this creates a double hedge for the bank. If you still want to keep your partner out of the contract, you have to be more creative. Thus, company property and private property should be separated cleanly, which is especially important when the work is done from the home office.
The loan should then only be privately exempted, with the company’s capital acting as collateral. If both spouses are not employed in the company and one person pursues a regulated activity, only the part of the income attributable to the respective borrower can be seized. This means that either the company’s capital or the income from work is affected. This creates a hedge for bad times.
Depending on who signs the contract, the following documents must be available:
- business license
- Tax assessments of the last three years
- Income surplus bill (preferably from the tax office)
- Sales overview of the last three months (bank statements as evidence of receipt of money)
- ID card or passport
- Possibly documents about the admission in the respective field of activity
- Employment contract (unlimited)
- Salary statement or account statement
- ID card or passport
If contracts exist, such as a marriage contract or settlement agreement, they must also be presented to the bank, even if only one spouse signs the contract.