Unmarried borrowers can stand alone as well as live in a relationship. In an existing love relationship, they live with their partner or in separate apartments. While banks often insist on joint borrowing from married couples, unmarried couples can basically decide for themselves whether they want to borrow from two or not. Both variants have advantages as well as disadvantages.
Borrowing together can make sense
Ideally, unmarried couples take out a loan together if the loan serves their common life. This often concerns the purchase of furnishings for a shared apartment, but also the loan for a vacation trip. Banks lend a single loan to unmarried couples regardless of whether they live together. With two borrowers, two incomes are available to repay the loan. In addition, the partners in a partnership without marriage certificates are not liable for each other’s obligations, so that joint liability only arises from joint borrowing.
Married couples, on the other hand, are fundamentally liable for the financial transactions that help them to live together. If only one of the two partners has a job, borrowing from a contractual partner of the bank makes sense. In this case, the bank usually only takes into account the income of the borrower and the costs incurred for one person in the household account. In the case of joint borrowing, on the other hand, the household calculation is carried out with the income of both partners and the corresponding costs.
Make clear rules
In the case of a loan for unmarried couples, the loan agreement with the bank only applies to the borrower who actually signed the contract. If both partners act as borrowers, the bank can either contact both or a credit customer in the event of irregularities in repayment. Usually, she addresses the person from whom she most likely hopes to settle the account. Many couples feel uncomfortable thinking about a written loan repayment agreement.
Nevertheless, this is indispensable both when borrowing jointly and when the loan application is made by only one partner. In the repayment agreement, the partners determine who is involved in the repayment with what amount. In the case of a loan for unmarried couples, this agreement is of course not relevant to the bank, but only in the internal relationship of the partners.
An occasional rumor goes that banks are reluctant to lend to unmarried people without a partner, who are less reliable than spouses or people living in relationships. This rumor does not apply to bank lending, as banks only pay attention to their borrowers’ ability to repay. When it comes to lending via private loan brokerage websites, lenders actually often make decisions based on personal criteria. However, these do not have an unfavorable effect on singles, especially since private lenders are willing to grant loans for unmarried mothers at above-average rates and on favorable terms.