The recommendation of financial institutions is clear, especially for small loans: If possible, one should not make the loan application alone but with a co-applicant. But what does that mean and what if you want to have a loan without a co-applicant? Is such a wish then excluded?
The credit without a co-applicant: What is waived?
In the case of a loan without a co-applicant, the bank refrains from offering the bank a particularly good interest rate offer and it approves the application much faster than usual. For the co-applicant or co-applicant plays a very important role in the whole process of lending: it is something of a guarantor. This means for the bank, it has not one but two people to which it may comply when it comes to the repayment of the loan. The likelihood that the repayment of the loan bursts, thus clearly in the knee and as the granting of the loan is less risky, the bank can also pay better interest rates.
The credit without a co-applicant: how does it work?
But for a loan without a co-applicant you want to just do without these benefits. This is mostly because you do not know a suitable co-applicant or would like to burden anyone who would do so with this role. Obviously a loan will not be possible. In the case of a loan without a co-applicant, the typical laws governing lending apply: the alpha and the o is the creditworthiness, and the scoring (the entry) in the protection group for general credit protection should not be negative.
The credit rating depends essentially on a fixed and secured income. Creditworthiness is the foreign word for “loan repayment ability”. This means the fixed income minus the cost of living. The credit bureau, however, suffers from old loans, but especially under unpaid bills or other credit installments. If the credit bureau is negative, then the credit rating must be very good. Especially people with bad credit bureau should think twice about whether they really want a loan without a co-applicant or if they do not know a suitable person.