Instant loan with guarantor.
Credit needs can arise quickly. An urgently needed major car repair, the purchase of a new household appliance or the use of a really cheap offer in the trade quickly brings money requirements with it.
Borrowing in German financial institutions has become fairly straightforward today – provided that the creditworthiness is in order and there are no entries at Credit bureau either. If this is the case, you do not have to refrain from borrowing, because despite negative conditions you can get the desired loan.
The instant loan with guarantor
A good way to get a loan even if you have a bad credit rating or negative Credit bureau entries is with an instant loan with guarantors. In this case, the guarantor enters into the loan agreement. This means that the loan agreement between the bank, the borrower and the guarantor is concluded. If the borrower defaults on payment, the guarantor is used by the bank as a further contractual partner.
What are the requirements for this loan?
In order for the loan to be implemented with the guarantor, it is first of all important that the guarantor has a good credit rating and an impeccable Credit bureau. In addition, the loan amount is determined based on the guarantor’s creditworthiness. For the borrower, this can mean that the loan amount can also be higher than if the loan is granted depending on one’s own credit rating.
For the loan processing, the borrower does not have to provide proof of income to the guarantor alone, but also has to accept a Credit bureau query. After this check procedure, the further processing is carried out as with the classic loan and the payment of the installments is debited from the borrower’s account.
Important for the guarantor: protection!
In the case of an instant loan with a guarantor, the guarantor and the borrower are both liable for the loan. Therefore, the borrower should be aware of his responsibility towards the guarantor and should only implement a shoulderable amount. It can also make sense to take out mutual contractual protection for the instant loan with guarantors, as far as the further procedure is concerned, if the guarantor has to support the repayment of the loan.