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Cash loan – alone or with someone?


When applying for a cash loan, not everything always looks colorful. Many factors influence the receipt of a cash loan at the bank. Banks primarily analyze your creditworthiness .

They take into account, among others the amount of your stable income, your age, household maintenance costs or ongoing commitments.

If the creditworthiness is – in the bank’s assessment – too low, then you probably won’t get a loan at all, or you’ll get less than you need.

Seeing the irregularity in repayment of previous loans, past due installments or unpaid interest, the bank will definitely refuse to borrow you cash. And what can you do then? The easiest way to find a co-borrower.

Cash loan – who can become a co-borrower?

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In principle, we can take a cash loan with anyone – both with a related and complete stranger. It is best to find a trusted person whom we will be sure of. It is worth to bet on someone from the family with whom we will always be close.

Ask a potential co-borrower about his credit history, because the bank will certainly analyze it very carefully. Be honest. Your co-borrower should know that when you commit to a bank with you, your creditworthiness will decrease. If you are planning other loans, it may be more difficult to obtain them.

Also, when it comes to the number of people who co-own a loan, banks use different solutions. We can meet with the fact that a given institution will allow us to apply for a loan with more than one additional person, which will further affect the amount of funding.

Cash loan – co-borrowers obligations

Cash loan - co-borrowers obligations

A person who decides to help us will be subject to the same obligations as us. This means that she is jointly responsible for paying off the obligation incurred at the bank. If the installment is not received by the due date, the bank will not only collect you but also your co-borrower.

To sum up – the co-borrower will be especially useful for young people whose earnings are not very high, which means they have no chance of a good loan in the bank. By taking a loan together, you have a good chance of increasing your creditworthiness.

Cash loan – are both a borrower and co-borrower the same?

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A resident, also called a guarantor , by signing a loan agreement with us, agrees to repay all or part of our financial liability in a situation where, as the main borrower, you will not be able to repay your debt to a bank or other financial institution.

If, as a borrower or borrower, you are not able to repay the cash loan, the lender will definitely demand repayment from the guarantor.

What rights does the guarantor have?

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The guarantor has access to the current debt repayment. It may require information from the lender about the current repayment status. It should also be immediately informed by the bank about borrower’s problems with the borrower.

The difference between the co-borrower and the resident is therefore quite clear . A resident is not obliged to repay the liability jointly with the borrower.

He only guarantees that in the event of the borrower’s inability to repay the cash loan, he will repay the remaining debt. In the case of a co-borrower, the loan is divided into two persons, and the borrower and the co-borrower must regularly pay the liability.

If you want to learn about other methods to increase creditworthiness, read our article .

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