Loan for couple
Taking out a loan together with your partner makes many things easier. For example, a joint loan can be a sensible option for married couples or life partners to finance joint goals and make financial decisions together as a couple. In addition, joint loans often offer the advantage that you can benefit from better credit conditions.
But what aspects should you consider if you want to take out a loan together? And how does lending work when there are two borrowers? You can find out all this and more in this article.
Loans for couples – why is it worth taking out a loan together?
Taking out a loan as a couple is generally a good way to achieve financial flexibility. For example, your chances of success for a loan increase considerably if you include your partner in the loan application. This improves your credit rating, which allows you to apply for a higher amount and avoid a loan rejection. The prerequisite for this is that you both live in the same household.
The joint income means you have more financial resources available to repay the loan, as you can also share joint costs. Banks will generally take your partner into account even if you are not married, as long as you are in a registered partnership.
In summary, this means Your credit rating and the chances of a positive credit decision will improve significantly if you include your partner in your loan application.
Creditworthiness
The creditworthiness of borrowers plays a decisive role for banks when it comes to granting loans. An additional person often increases the bank’s certainty that the loan will be repaid on time. So whether you are applying for a new personal loan or want to top up an existing loan, taking out a loan together can significantly increase your creditworthiness.
If both partners have a good credit rating, this can lead to better conditions. Banks often assess creditworthiness based on the total income and financial obligations of both partners. This can result in you receiving a higher loan amount or having to pay lower interest.
Liability
In principle, a joint loan also means joint liability. This means that both partners are responsible for the entire loan amount. This can have advantages, as the bank has more security and may be able to offer better conditions. On the other hand, both partners should be aware that they are also liable in the event of payment difficulties or a default by the other partner.
However, it is often the case that only one of the two partners is listed in the loan agreement. Although your spouse is taken into account for the credit check, in this case, they are not responsible for the loan. So if the loan agreement is concluded exclusively with you, you alone are liable for repayment as the borrower.
An exception can be made for very high loan amounts, typically from CHF 80,000. In such cases, a bank may require additional collateral or consider a co-signature by the partner to secure the loan.
Death of the partner
When a spouse dies, the question often arises as to whether the surviving partner is responsible for the deceased partner’s loan. In principle, both assets and debts pass to the estate. This means that loans also fall under this rule – provided that both partners have signed the loan agreement together and the surviving partner is considered the real borrower.
In such cases, the surviving partner bears joint responsibility for the loan. This happens because both partners have a genuine interest in the loan. This is an important point for couples to consider when deciding to take out a joint loan. Careful planning and possibly appropriate insurance can be useful here to minimize financial burdens.
Unmarried couples
Taking out a joint loan can also be an option for unmarried couples. Some banks offer this option, which is mainly used to optimize the household budget. The advantage is that the monthly expenses can be split between both partners, which can allow for a larger loan amount.
If the second partner’s financial situation is also strong, this not only increases the chances of a positive credit decision but also the possibility of obtaining better interest rates and conditions. With two incomes and shared costs, the loan amount can be increased, which can lead to more advantageous conditions depending on the bank.
Last but not least, you have the option of claiming the loan on your tax return to deduct the interest costs from your tax bill. Taking out a joint loan can therefore make perfect sense for couples.
Couple loan: How to get a joint loan?
If you would like to take out a joint loan with your partner, you first need the consent of your spouse or partner. Consent can be given verbally, as your partner does not necessarily have to co-sign the loan agreement unless joint liability is desired. You can then add your partner’s details to your online loan application so that they can be taken into account in the credit check.
Now you need to prove your details and those of your partner with the relevant documents such as a copy of your ID and payslip. The rest of the credit procedure will then proceed as usual:
- Submit the online loan application.
- Sign the loan agreement.
- Receive the loan amount you have requested in your (joint) account after the 14-day withdrawal period has expired.
How can couples increase their chances of getting a loan?
A loan for couples offers some decisive advantages: If both partners have an income, this improves their credit rating and allows banks to offer a more favorable interest rate. Applying for a loan together therefore not only increases the likelihood of approval from the bank but also reduces costs.
To further improve their chances of obtaining a loan, couples should therefore strengthen their credit rating. This includes repaying existing loans on time, paying off outstanding bills, and avoiding excessive debt. A solid work record and stable income can also have a positive effect.
FAQ
Conclusion
Taking out a loan together not only offers couples financial benefits through improved creditworthiness and lower interest rates but also greater flexibility when it comes to repayment. Whether married or not, the decision to apply for a loan together can make financial planning and the realization of joint goals much easier. Apply for your couple loan with Miro Kredit AG now.
Private loan calculation example:
Loan amount: CHF 10,000 without insurance. Repayment period: 12 months
Interest (including costs) amounts between CHF 240.50 and CHF 574.25. Effective interest rate 4.5% – 11.95%. Possible loan repayment period from 12 to 120 months
Processing fees: CHF 0.-. Granting a loan is prohibited if it leads to over-indebtedness (§ 3 Unfair Competition Law – UWG)