Advantages and risks of requesting a couple loan
In the market you can find different loans and credits that allow you to include two holders. If you have a stable partner, applying for personal loans as a couple in the name of the two can bring you several advantages. The number of holders requesting the loan is valued, since two sources of demonstrable income offer a greater guarantee of payment than one. Then, it is not only easier for you to be granted the requested money, but it is also possible to achieve better financing conditions for your common project. However, it is necessary to mention that couple loans also carry risks. If a breakdown occurs in your relationship, putting together a separation process and resolving custody of existing couple loans can be complicated.
In this article we will discuss the advantages of loans with two holders and what you can do to distribute the loans and credits requested in common.
Advantages of loans with two holders
As for the requirements, they are the same as for the other personal credits. The two holders must be the minimum age, must be residents in Spain and have to demonstrate a sufficient and periodic income. Keep in mind that not all entities offer couple loans and accept two holders.
The main advantage of couple loans is that two people will be responsible for the repayment. This implies that two salaries are put as a guarantee of payment and the lender has more confidence towards the repayment of the credit. In short, with two salaries there is a greater guarantee of repayment and, therefore, couple loans are more likely to be granted.
In addition, by joining the income of the holders you can get cheaper loans, because you have a better economic profile as a whole than separately. And, in general, a better economic profile lowers interest and increases the amount of money available to request.
What to do with joint debts if you separate?
The separations occur and bring a series of changes that also affect your economic and financial situation. The first thing to keep in mind is that, even if you are separated, for the lender you are still responsible for the loans or credits that you have together. That is to say, a divorce does not affect in any way the responsibility that both have acquired with the lender.
In this situation, the simplest option would be to cancel the loan, repaying all the capital in advance. This way all the problems end. However, this option is not always realizable.
If it is not possible to cancel the loan, there are several other alternatives. One of them is to create a joint account for loan repayment. Each of you must enter monthly in this account the part of the quota that corresponds. However, a mutual trust is necessary that each one will fulfill his obligations.
Another alternative may be to make a change in the loan holder. That means that one of you will become the only person responsible for the refund. This option entails more procedures, as well as commissions to carry out the modification of the contract. Before making these changes, the bank must evaluate the solvency of the person who remains the sole holder so that he can face the repayment of the loan.
There are several options that you have when dealing with separation and sharing loans in common. A divorce is always a difficult situation, but if it happens you must solve it in the best way. The most important thing is that you are prepared and act intelligently so that your personal finances are not affected.