A loan despite negative private credit with guarantors is a sensible alternative to a debt-free loan from Switzerland, especially as such is available only in the amount of 3500 or 5000 euros and the federal financial institutions for the lending significantly higher income than the domestic banks.
In the case of a single soft negative feature, it is not essential to evade a debt-free loan or to provide a guarantor, as few banks will lend a normal loan in such a case. This is increasingly the case if the negative credit entry is already marked as completed and for the German credit security itself – unlike most banks – is considered a neutral feature.
Who qualifies as a guarantor?
Loan seekers are often surprised that not every bank lends a loan despite negative private credit with a guarantor. In some cases, financial institutions even explicitly propose to replace loans secured by a loan guarantee with a loan from a second applicant. This behavior of the financial institutions can be explained by court decisions that have declared a loan guarantee by inexperienced individuals in part as invalid. The bank can prevent this danger by informing the guarantor comprehensively about the obligations of the guarantee and checking its economic strength even more strictly than with a loan applicant. A comparable obligation to inform a co-applicant does not exist.
The guarantee from a close relative, such as the spouse or a parent or the partner, is appropriate from the point of view of the borrower. It is basically possible, but legal doubts about the effectiveness of a loan guarantee increase with the emotional connection between the borrower and the guarantor. The fact that the employer acts as guarantor for a loan despite a negative private credit is the optimal solution for the bank. In this case, there is no emotional connection and the guarantor has sufficient economic experience. In practice, the employer’s guarantee is unlikely, so the financial institutions also accept private individuals as credit bureaux.
The guarantee by a Bürgschaftsbank is theoretically possible, but has no practical significance for the loan despite bad private credit with a guarantor. The simple reason is that a commercial guarantor, if he does not fully specialize in commercial credit guarantees, can guarantee a private loan only if the creditor is sufficiently creditworthy.
If the direct borrowing proves to be difficult for a bank, the appointment of a credit intermediary with the search for a suitable loan despite negative private credit and with a guarantor is a sensible alternative. Prerequisite for placing the order is that the service provider no pre-costs, but exclusively requires a reasonable success fee. As an additional service, the credit intermediary compares the terms of different loan providers so that he proposes a favorable loan to the client.
What does the guarantee for borrowing mean?
Contrary to what is provided for by the legislator, the single-currency guarantee instead of the default guarantee is the normal form of a credit guarantee. The difference is that the bank can already rely on the guarantor in the event of clear defaults and not only after futile penalties.
As soon as the borrower does not properly service the loan despite a negative guilty with a guarantor, the financial institution demands repayment and interest from the loan guarantor. The latter acquires a repayment claim against the original borrower, which is, however, unenforceable due to a lack of income or a personal bankruptcy with a residual debt waiver. For this reason, the loan poses a high risk for the guarantor despite negative private credit, so that predominantly (spouse) partners, parents or children take over the guarantee.
A flexible loan repayment is of particular importance for a loan despite negative private credit and with a guarantor, since the right to an occasional installment suspension prevents the delay in the loan repayment. More and more banks are granting such a possibility in the credit agreement once a year or once within two years. Equally important is the decision to have as long a term as possible because it reduces the monthly loan installments.
The personal loan with bad private credit with a guarantor
In addition to classic banks, a loan can be taken up with a guarantor via a platform for private credit brokerage despite negative private credit. The guaranty on the credit exchanges is basically not required with only one soft negative entry, so that the private loan application with a guarantor comes predominantly in the case of a hard negative feature or if there are several negative private credit entries.
The fact that the platform operator permits the submission of a loan request despite strong negative private credit due to the guarantor, is not sufficient for the actual personal loan allocation alone. For this, however, the drawing of the specific request by one or more private lenders is required to the most accurate description of the intended use contributes. On some of the private credit exchanges, it is possible to not display the contents of the private credit information for potential lenders. However, complete data are advantageous for a quick loan note and, in addition, the provision of a loan guarantee indicates that there is more than one soft negative feature.