It is harder to be allowed to borrow when you apply alone than when you apply the same with another because the bank runs a greater risk by borrowing an amount for one person.
It may seem unfair that two applicants with an income of DKK 20,000 each a month have easier access to loan offers than a person earning DKK 40,000 and applying alone. But this is because the bank takes into account the risk of you becoming unemployed. If one of the two applicants with an income of DKK 20,000 loses his job, they still have the other’s income to pay off the loan. If you as a loser lose your job, the possibilities of paying interest and repayment on the loan are worse.
Why is it harder?
Therefore, in several cases, the banks give loans to applicants with co-applicants, and in many cases the interest rate is also lower.
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Who can be a co-applicant?
In many cases, applicants choose to have their boyfriend, partner or spouse as co-applicant, but a co-applicant does not need to be your partner.
In fact, you and your co-applicant do not even have to share address, household or finances. What matters is that you agree to borrow a loan together and help each other pay off the loan.
As a single, you can therefore apply well with your sister, friend, brother, colleague or neighbor. Just talk the deal well and agree on what type of loan you want to take and how you want to share the money.
Lower interest rates and more offers
A co-applicant influences both your options for obtaining loans and partly the size of interest and fees. At Bunter, we see that applicants with co-applicants receive both more and cheaper loan offers. This means that several banks make offers and that interest and creation are typically cheaper.
Apply without co-applicant
That said, it is important to emphasize that you can, of course, apply alone and that many outstanding applicants receive good offers on loans. However, it may be a good idea to pay extra attention to other factors that affect your credit rating when you apply alone.
Overall, it strengthens your application to have a fixed income, have low fixed costs, have a thank you card, be a member of an unemployment fund and not stand in the RKI.
It is therefore a good idea to look through your finances and pay attention to sending clear signals that you are responsible for your finances.
You can read more about how to strengthen your credit rating here.
What about smaller loans?
The advantage of a co-applicant is greatest in the slightly larger loans – typically over DKK 40,000. If you apply for a small amount, the bank will not look at your co-applicant as much. Therefore, it is especially in the case of large loans that it pays to make an effort to find a co-applicant.
If you apply for a small amount, and if you generally have a healthy economy with room to take out a loan, you have very good opportunities to get good loan offers – even when you apply alone.