A plus for a lending is besides the income and the fixed employment the presentation of attachable valuables. The granting criterion prevailing at German banks is the regular and sufficient income in addition to a positive entry.
If a loan seeker can not demonstrate this, then usually no loan commitment is made. But if attachable valuables are presented, they can be used as collateral for a loan. In addition, there is also the option to apply for a loan with a guarantor despite a negative entry. This guarantee is intended for those persons who can not prove any of the other assets.
Loan with guarantor despite negative entry and its conditions
If you need a loan in Germany, you usually ask at your house bank. However, certain conditions have to be met at these credit institutions. For example, if there is a negative entry in entry, that is a rejection criterion for the loan. Who now no regular income that is above the seizure limit and otherwise has no attachable valuables, can apply for a loan with guarantor despite negative entry.
The position of a solvent guarantor thus secures the loan and guarantees the repayment of the same. The guarantor is practically liable with his assets with the signature he has placed under the loan contract of the loan seeker. If there are defaults on payment, the guarantor must pay the installment payments or the loan immediately. Conditions are also attached to the guarantors. He must be creditworthy, can prove a regular income and of course he must not have a negative entry entry.
In addition, a guarantor should be informed about his guarantee. Many who put their signature under a credit agreement think it is a favor. But with a guarantee, the guarantor can reduce his or her own creditworthiness, and taking out a loan can be detrimental to him, so he may need a guarantor for a loan himself.
Surety variations in a loan with guarantors despite negative entry
A guarantor can come from the circle of relatives or acquaintances, but there is also the possibility to include the borrower’s house bank in the guarantee. The house bank will then charge a so-called guarantee fee for the risk, which is calculated from the amount of the guarantee.
The usual costs of the loan are then added to the guarantee costs, which could mean a greater financial burden. In this regard, however, there are some rules to be observed for private guarantees. Thus, the case law of the Federal Constitutional Court states that private guarantees can be declared invalid if a guarantor is totally overburdened with the guarantee.
The loan with guarantors despite negative entry
A loan despite negative entry is a foreign loan granted by banks. The loan amount is limited and is at the level of 3,500 euros. Anyone who now needs a higher amount of credit, for example to buy a car, can positively influence the loan application by mentioning a guarantor. As already mentioned, the guarantor should be informed of his guarantee obligations.