Including a co-applicant in your loan application is a great way to apply for loans since it increases the chances of that loan being granted. This is an ideal way for individuals whose loans have been rejected a number of times when they are looking for them alone. Anyone can be included in the loan application, provided they form a part of it willingly. In simple terms, having a co-applicant in a loan application means that both the applicants stand equally responsible for the repayment of the loan.
Loan with a co-applicant-Pros and Cons
There are several instances when an individual is completely denied a loan or is approved of a loan amount that is considerably lower than the required amount. Some of the common reasons for these are the borrower might be too young or there can be a case of fault of missing a payment for a completely simple reason or an innocent reason. To overcome such difficult situations, there is a simple, safe and easy way and that is to share the responsibility of payment of the loan amount and credit worthiness through a co-applicant. A co-applicant can be anybody from among family or friends who are willing to as well as capable of helping you to realize your dreams.
- With a co-applicant, the amount borrowed can be easily increased and the rate of interest can be reduced.
- If the borrower is too young to get a loan, he can have a co-applicant elder to him and get his desired loan.
- However, there is always a risk associated with an unsecured consumer loan with a co-applicant. The co-applicant is partly responsible for the repayment of the loan amount, failing which you are also held responsible for the default and the penalty. It is therefore, extremely important to have a co-applicant who is responsible, trustworthy and aware of all the possible risks associated with the non-payment of loan amount.
All in all, having a trustworthy co-applicant is worth having all the risks associated with the procedures of loan but if you do not have somebody you can trust, it is not worth the plunge.
If you are interested in any further information on the subject of applying for a loan with a co-applicant and check out the list of unsecured consumer loans in Norway where it is possible to apply for a loan with a co-applicant, check: www.lånmedmedsøker.no