Are you interested in a car loan with guarantors ? Would you like to start right now, because time is burning under your nails? Use the credit comparison. Enter the dealership as a cash payer. Save a lot of money
Not decided yet? Consider whether a guarantor may be avoidable? Use the text as a guide. With a little luck, it works with the car loan, without naming a guarantor.
Car loan with guarantors – why actually?
After car loan with guarantors people search, if the personal credit rating for independent borrowing is not sufficient. This happens more and more often in Germany, because banks must meet requirements. All “systemically important” lenders, including all banks, are only allowed to grant secure credit. Unlike in the past, the legislator talks a little bit, “what is certain.”
The focus of the legislative changes – after 2005 – was on the globalization of the lending business. Loans are traded. So it came that lazy loans from the US initiated the euro crisis. Multinational rules are now intended to prevent lenders from taking a risk and then passing it on to others. The father of the thought is good, but a car loan with guarantors is rather annoying.
Loan with guarantor – who is allowed to vouch?
Basically everyone is allowed to vouch. However, in order for the guarantee to be accepted for the desired loan, the guarantor must be solvent. In plain language, in case of difficulties, he must be able to bear the debts. As a result, many people are in fact excluded from the responsibility of a credit guarantee. Their financial capacity is not enough to take the blame in an emergency.
This rule has not been that long, but it makes sense. Because, it is contrary to the fact that someone vouches, who is in fact not up to the guarantee risk. The bottom line would be in surety two people facing the financial abyss. The lender would not get any money anyway. In order to avoid suffering and misery for “penniless” guarantors, the “safeguard clause” was drafted.
Credit with two applicants – difference to the guarantee
A car loan with guarantors is basically a loan with two applicants. But a special form of it. The guarantor is not automatically equated to the principal debtor. Only when the lender has exhausted his funds against the principal debtor, he may turn to the guarantor. This causes additional costs and time.
As a result, most banks today no longer like to rely on a straight credit guarantee. They only allow applications with two “equivalent” principal debtors. Thus, the modern car loan with guarantors is basically a loan with 2 equal debtors. The bottom line is that this results in enforcement benefits.
Guarantee Loan – not without reason
When banks demand a second liability, this rarely happens without good reason. The guarantor is required if the creditworthiness of the borrower is insufficient. In other words, the professional assessment regards the solvency of the applicant as being at risk. Not only capital is protected. Because, at the same time it is a serious warning shot.
If the car loan is demanded with guarantors of banks, it can be assumed that the borrower can not afford his loan. Good advice can only be to reconsider the credit. Banks like to sell money. If you give up a business, then there is a real risk in the room. Forcing a loan with a guarantor relocates the risk only to the guarantor.
Take over guarantee – car loan
The admonishing words are addressed to borrowers and guarantors alike. Nevertheless, a car loan is difficult to avoid. After all, the ready-to-use vehicle is largely indispensable for both job and family. Of course, this situation also sees the guarantor. He wants to help. His risk is quite manageable when car loan with guarantors.
By buying a car, a real asset is purchased. If the negative forecast of the bank is confirmed, not all money is lost. After all, the material value can become money again. By selling the vehicle, at least part of the guarantee sum can be reinsured. However, an additional written agreement should be concluded for the guarantee case.
Namely, that the guarantor gets the rights to the vehicle if the debtor does not pay. It’s just a “little piece of paper” that hopefully never needs to be used. A reinsurance, which at the same time significantly reduces the guarantee risk.
Car loan without guarantor – find offers
The car loan with guarantors is not absolutely necessary. Each bank sets its own standards for the credit check. Thus, even a simple change of provider can prevent the guarantee credit. It can be seen that credit offers with higher credit risk are relatively easy on lending rates. The 2/3 example is compared to PAngV.
Increased interest rates indicate a “risk-taking” provider. In particular, the vehicle loan with guarantors could be prevented by bank credit of Von Eifel Bank. The bank is considered a problem solver in difficult cases. The extra loan can be conveniently applied for via the credit comparison. However, the interest rate level has left its mark on the cost balance.
A car loan with guarantor would be much cheaper. Instead of paying for 3.59 percent APR, as at carcredit, for example, 9.12 percent would be used to pay effective interest pa. (Compared to PAngV).
Alternative – credit from private
Credit portals such as Creditend or Trucredit offer serious ways to get credit from private investors. The portals do not offer a car loan with guarantors. But still, the vehicle can help to get a loan. In the amount of the mortgage lending value, the portals identify the loan as secured. This minimizes the risk for investors.
More bidders are the result. However, this way works only if the Credit Bureau is not completely ruined. With an unpaid negative Credit Bureau entry, the credit opportunities are limited. Either the credit comes from the private circle of friends or a foreign credit would be conceivable. The car loan with guarantors from abroad is guaranteed to be avoidable.
Credit Bureau-free car loan – without guarantor
As far as known, only one bank grants Credit Bureaufreien credit to Germans. It is the Octa Kreditbank from Liechtenstein. Credit Bureau-free loans granted for security are used exclusively for earned income. The bank does not accept guarantor or collateral.
The application may be made through intermediaries, such as credit or directly. However, a downside remains when the car loan with guarantor is replaced by a Credit Bureau-free loan. The loan amount is very limited. The bank offers either 3,500 USD, 5,000 USD or 7,500 USD.