Obtaining a loan by a single can be more difficult in some cases. On the other hand, with loans for singles, you do not have to worry about getting a spouse’s consent. However, obtaining a loan by a single is more difficult, first of all, from the point of view of creditworthiness. Financial companies primarily take into account the income of borrowers.
Marriage, in which both people work, usually have much higher income compared to singles. It allows, therefore, to obtain much higher sums of loans. When granting a loan, the higher the income, the higher the creditworthiness.
At the same time, higher creditworthiness also translates into the possibility of obtaining much larger financial resources. Individuals who are singles can have a bit harder when applying for a mortgage.
Many loan companies require loan insurance to secure themselves against the eventuality of non-repayment. Insurance of loans, of course, increases the cost of obtaining a loan.
This should be taken into account when you want to obtain a loan, especially for a longer period of time. At the same time, loan insurance is much more often required when borrowing singles.
This is due to the fact that in the loss of work on the part of a person who is single, the bank is not able to collect a financial liability from the income of another person, when the loan is not secured on real estate or through the prisoners. When a loan is granted to spouses, the bank may draw a financial liability from the other person’s income.
A mortgage loan for singles
The most difficult for singles is to obtain long-term loans, especially mortgage loans. It is necessary for such loans to find companies that are ready to provide loans for the purchase of a house or flat.
At the same time, it should be taken into account that being a single has much lower income and is also a higher risk as a borrower for a financial company. For this reason, you must properly estimate your own financial capabilities in the context of applying for loans regarding the amount of borrowed funds.
The most important thing for singles is finding financial companies that are able to provide a specific type of loan. When such financial products are selected in the form of loans that can be used, it is necessary to look for those that allow to provide the most favorable financial conditions.
Of course, this applies to the lowest loan costs. With short-term loans, it is very important to opt for loans that do not require insurance. Insurance is not beneficial in the short-term repayment of loans, the most since the loans for a few months the risk of job losses is very low.
It is also important to look for loans that can be obtained in the simplest way, which concerns minimum formalities. Singles will be asked more often in financial companies to present collateral or livestock.