Loans with a guarantee are often the way out of a credit crunch. A credit gap can be closed and a loan becomes eligible. Nevertheless, it is not always easy to find a solvent guarantor. In addition, the guarantee implies additional moral responsibility for the borrower. Therefore, possible alternatives should not be frivolously excluded.
Loans with guarantee – use possible alternatives
Loans with a guarantee are basically not a bad option. Nevertheless, it is uncomfortable to burden others with their own financial problems. In addition, any guarantee involves an unmanageable risk to the guarantor. Hardly anyone, apart from civil servants, can be sure of his job. In addition, nobody knows their own health future. Each loan is therefore always at risk of becoming distressed.
In many cases, the bank only proposes a guarantee, as it represents the easiest credit protection for them. Similarly, in many cases, collateral would be possible to secure the loan. For example, a car letter or pension plan could be used as security. It would also be conceivable, of course, the assignment of a landlord or the land register.
Even a slightly higher interest rate should make the collateral security worth the borrower. Loans with a guarantee, which only benefit the borrower, should therefore also be secured by a residual debt insurance. Alternative forms of credit are also worth considering.
Compare alternative providers – avoid the guarantee
Alternative providers, without a bank, may be helpful. The private loan is often possible with lower hedging obligations. Contacting private investors is easy to make via one of the major portals. Private investors are looking for safe investments, but they are more risk-averse than banks. Almost every loan request can be realized on its own.
If the credit is a consumer desire to be satisfied, then often enough a small loan from the Internet to do so. Small loans are convenient to apply for and only undergo a simplified credit check. Even without collateral, loan amounts of up to € 5,000 can be approved without difficulty. The payroll and the clean Schufa are enough.
Investments requiring a guarantee
For example, if you want to buy a house, you can seldom afford it at your own expense. For large loan amounts, every interest-saving option is important. The big investment guarantor is therefore an important instrument for significantly improving creditworthiness. The steadily increasing property value of the property limits the liability risk for the guarantor. If the loan becomes distressed, then there is a good chance that the sale amount will cover the loan.
Loans with a guarantee for smaller sums should be reserved for cases where there is no other way. Nice examples would be the credit for the junior driver’s license in training or the credit for pensioners. On their own, both groups manage to pay the loan, but the grant is tied to a guarantee.