Loan with guarantor: Online top rates + tips


Important for the loan with guarantors

  • Credit rating the guarantor decisively
    With a guarantee you can get a credit even with bad credit. But the guarantor himself must have a very good credit rating.
  • Trust should exist
    Guarantors and borrowers should talk in detail before signing the loan. A good relationship of trust is important.
  • Do not rely on surety
    You should also be able to pay the loan installments independently, despite guarantor.


Different living conditions can mean that your own credit rating is insufficient for a loan. If you are in urgent need of a loan then it will be difficult. In this case, a guarantor can help out and provide the necessary security. To find the right loan for you, a credit comparison is advisable.

However, a loan with a guarantee is not to be taken lightly, neither for the borrower nor for the guarantor. In this guide you will learn everything important about the guarantee loan and what you have to pay attention as a borrower and guarantor.

How to find a loan with guarantors

 How to find a loan with guarantors

When a bank issues a loan to customers, it checks the credit default risk in advance. In some cases, banks require additional collateral to hedge the loan amount.

In the case of a car loan, for example, a so-called security transfer often takes place. In this case, the bank then receives the financed car as collateral.

For larger loans, such as real estate loans, insurances such as life insurance or disability insurance are used as collateral. For example, in the worst case, these insurances are intended to cover the residual debt in the case of mortgage lending.

In conventional consumer loans, the bank checks the creditworthiness of the borrower in advance. For this purpose, the income of the applicant is taken into account. On the other hand, the Private credit score is queried or a query is made to other credit bureaus. If the credit check leads to a negative result, the loan application is usually rejected. In order to prevent such a case, a guarantee loan can be used.

What is a guarantee loan?


A guarantor uses a guarantor to secure the loan debt. The guarantor will then be liable with his own fortune for the debts of the borrower. If the borrower fails, depending on the contract, the bank can seize the outstanding amounts directly from the salary of the guarantor. This is the case, for example, in the case of a direct guarantee.


Requirements for guarantors

Not every consumer is suitable as a guarantor. Basic requirements are:

  • majority
  • Good credit
  • Own income
  • Permanent resident of Germany

As a rule, borrowers choose only guarantors who know them very well. They are relatives or very good friends. Subcontracting with foreign guarantors should be avoided at all costs.

Banks check the creditworthiness of the guarantor as well as the creditworthiness of the borrower. For this reason, guarantors must have a regular income. For salaried employees, these are payroll statements or account statements. Self-employed persons are required by the bank to receive income tax assessments or a BWA (business evaluation). Even with guarantors, a Private credit query is performed.

So the credit is cheap

A guarantor loan is always cheap if the annual percentage rate of charge is low compared to other products. That’s why you should never take a single loan offer immediately, but always compare different guarantee loans.

In this case, also check how the repayment modalities are designed. So the right to free special repayments makes a lot of sense. If, for example, you have more capital during the term, you can repay a part of the remaining debt beforehand. This either reduces the repayment term or you can reduce the installment amount. Your guarantor will then also be liable for a lesser amount of money.

When a guarantee loan can be useful

A guarantee loan is initially recommended for borrowers who can not borrow without additional collateral and depend on the loan. These cases usually arise when children ask their parents for a loan guarantee because they want to finance their own housing equipment or a car.

The advantage over traditional loans is that creditworthy consumers or consumers with negative Private credit can also get credit.

Consequences for guarantors


The guarantor does not have a direct advantage by his task. Thus, he receives neither interest nor other benefits through the guarantee. He can only help a friend or relative to get a loan.

The disadvantage arises when it actually has to pay for the loan debt of the borrower. When this point is reached, he is liable for all his debts and, like the debtor himself, is liable for payment.


Step by step to the guarantee credit

 Step by step to the guarantee credit

The way to a guarantee loan does not differ significantly from conventional financing.

  1. Check your financial framework
    First determine the financing requirement. How much money do you need? Then check which amount is available monthly for debt repayment. Using these two key figures, you can estimate what runtime is possible.
  2. Check your income
    Check if you can really count on regular income. After all, a guarantor should only serve as security and not actually be used.
  3. Use a credit comparison calculator
    Start a credit comparison calculator. The free loan calculator from Financedel shows serious and discount deals with a few clicks. In this way, you can be sure that you will only receive reputable offers. This is how you avoid offers from companies that are not subject to German banking supervision.
  4. Compare different offers
    The loan calculator allows you to compare different offers in a neutral manner. Select the lowest-interest offer and contact the bank. It is best to ask in advance if a guarantee loan is possible.
  5. Make the loan application
    If you have found the best possible offer and a loan with a guarantee is possible, you can also submit your loan application online. The application will then require not only information about your income, the current account and your person, but also information about the creditworthiness, the account and the person of the guarantor. In addition, both you and the guarantor must sign the loan application. For guarantee loans, however, be sure to ask the bank if additional forms are needed for the application.
  6. paying out
    If your loan application has been approved, the loan will be transferred to your account within a few business days.

questions and answers

What are the advantages and risks of a guarantee loan?


The advantage of a guarantee loan is that you can get a loan even with a bad or low credit rating. As a guarantor, however, you have the risk that the borrower may actually no longer be able to meet his installment payments and that you will then be fully liable for them. As a guarantor, you can therefore also find yourself in financial distress with high loan sums.


Can the guarantee risk be excluded by a contract?


The guarantee law does not provide for the exclusion of the risk for the guarantor. Thus, if a guarantee loan is taken out, the guarantor is liable in any case and must fully pay the creditor’s debts to the bank. However, in the private sphere contractual arrangements can be made with which the debtor undertakes to repay the capital provided by the guarantor. However, these regulations are not taken into account for the lending business with the bank.


For whom is a loan with guarantors recommended and for whom not?


We recommend a loan with guarantors for consumers whose creditworthiness is insufficient for borrowing, but who can expect a regular income. Such a case exists, for example, when children of full age want to finance their first car, but do not yet have a corresponding credit rating due to a training salary. Then, for example, the parents can enter as a loan guarantor.

The guarantee credit is not recommendable if the guarantor and the debtor hardly know each other and there is no basis of trust. After all, it should not happen that the guarantor has to step in.

As a guarantor, you should only enter if you know the creditor very well and trust him.

As a borrower you should only take out a guarantee loan if you are sure that you will be able to pay the loan installments at all. It would not be fair to use a guarantor knowing that you can not serve the loan anyway.


Can I spontaneously take out a loan with a guarantor?


A guarantee loan should never be taken up spontaneously. After all, the guarantor must be given enough time to think carefully about whether he would like to step in if payment fails. As a general rule, loans should never be taken spontaneously except in very urgent emergencies.


Can I replace a loan with a guarantor early? If yes how?


You can replace a guarantee loan early like any other loan, if you have the necessary capital for it. In this case, ask the bank about how much of the remaining debt is currently in effect and, in addition, check whether a prepayment penalty must be paid in the event of early loan repayment. Once you have completely repaid the loan, the guarantor is also exempt from liability.


Will the period of repayment be determined in advance?


A loan with a guarantor does not differ in the repayment modalities from a conventional loan. Accordingly, the installment levels in the loan agreement are already determined in advance. You will also receive an installment plan listing the monthly payments until the end of the term. Already with the selection of the credit you have the possibility to co-determine the running time within a certain framework. This is also important because it allows you to adjust the installment rate to your financial circumstances. Finally, the guarantor is only used as collateral, but in the best case should never be prosecuted because, for example, you can not service the due installments.


Is a rescheduling of the guarantee credit possible?


Like other loans, you can also repatriate a guarantee loan. If your financial situation improves over the course of the loan and you see a way to redeem yourself for a cheaper loan, you can seize the opportunity. However, check in advance whether your credit rating for a debt repayment loan is actually sufficient. For example, Private credit entries may result in another bank not issuing a loan without a guarantee.