Loan for married couples – Who is liable and how a joint application affects the credit decision

Whether you take out a loan alone or with your partner has an impact on the credit decision.

It also makes a difference whether you are married, divorced or living in a non-marital partnership.

The decision to buy new furniture or a new car is usually not taken alone. For that reason the decision to take out a loan should also be discussed with your partner. A joint loan application can bring both advantages and disadvantages. What they are, and how you can make the most of the advantages of a loan for married couples, is explained in this article.

Married couples

If you want to take out a loan and you meet the bank’s budget criteria, in theory no information from the spouse is required. The budget calculation makes it possible to set the loan amount, so that you know from the outset whether the spouse’s situation should be taken into account or not.

Even so, information about the spouse is requested when the loan application is completed. Why is that?

Taking the partner into account in the event of insolvency: Many banks require information on the spouse’s financial situation in order to review the applicant’s creditworthiness. If the bank finds that the spouse is not creditworthy, it can reject the application even if the applicant meets the budget criteria.

Taking into account a partner with a sound financial situation

If the spouse has a regular income and a solid financial situation, the applicant benefits from several advantages when the partner is included in the budget calculation:

• The chances of a positive credit decision increase

• It may be possible to increase the loan amount

• Scoring can improve and there is a chance to negotiate a better interest rate

A joint application can therefore improve the terms of the loan considerably.

Discretion towards the spouse: The spouse’s information only serves to give the bank a comprehensive and realistic view of the couple’s financial situation. The spouse is by no means contacted or included in the loan application.

In the event of a separation: Divorced people are treated like single people. That means that no information on the ex-partner’s financial situation is required.

Unmarried partners

Life partners are in principle treated like single people. However, including the partner’s payslip in the budget calculation is helpful, because rent, for example, can then be shared.

Who is liable in a joint loan application?

If you take out a loan, your partner is not jointly liable for the instalments. There is one exception, however: if your partner co-signs, they are jointly liable. If they do not sign, you alone are liable for the loan.

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