Co-borrower credit is a loan signed with another person, most often their spouse. Borrowing for two helps consolidate a request for credit, reassuring the lender. Credit with a co-borrower effectively commits the signatories to repay the loan amount: they become liable for the debt. Let’s go over everything you need to know about the conditions for obtaining your two-person credit.
Credit with co-borrower: in which cases?
Credit with a co-borrower allows you to add a person to your loan request, while giving them equivalent responsibility to theirs. This is to ensure the proper repayment of the credit. Several credit formulas allow you to add a borrower to your request:
- Personal loan
- Revolving credit
- A car loan or work loan
- The repurchase of credits
- A home loan
Credit organizations (see: which credit organization to choose?) All provide consumer credit with a co-borrower. However, you must approach a bank for any mortgage request.
Who can become a co-borrower?
Most large credit organizations only accept spouses as co-borrowers, as evidenced by our survey. All couples have access to credit with a co-borrower, whether they are married, civil partnership or in a simple cohabitation.
The advantages of co-borrower credit
Adding a co-borrower to your consumer credit application is reassuring for the lender. The sum of the income is indeed calculated at the time of the request, in many cases facilitating a positive opinion. Knowing how much to borrow for two can also provide cheap credit at the best rate.
Credit with co-borrower also allows borrower a larger sum. It is common for a loan that has been refused alone to receive a positive opinion from a co-borrower.
Married or PACS couples: the specifics
The law indicates that the spouses are always in solidarity with current debts (rent, food, conventional bills, education of children), whatever the matrimonial regime. However, contracting a credit without a spouse that is not necessary for the couple’s daily life does not commit the spouse.
Article 220 of the Civil Code : “Each of the spouses has the power to enter into contracts alone which have as their object the maintenance of the household or the education of the children. Any debt thus contracted by one obliges the other jointly and severally. Solidarity does not take place, if they have not been concluded with the consent of the two spouses, for installment purchases or for loans, unless the latter relate to modest sums necessary for the needs of everyday life. “
The law therefore explains that debt solidarity does not apply to purchases made on credit not motivated by an essential need of the household. When the marriage was declared without contract, as in 90% of the cases, it is the regime of the community reduced to acquests which applies. The debts of the commons are then common. Concerning the debts specific to the property of each spouse, they remain the responsibility of the spouse concerned. The husband contracting only a reckless credit without the agreement of his partner is solely responsible for the debt. A PACS implies, like marriage, a solidarity of debts associated with the needs of everyday life.
Credit with co-borrower in cohabitation makes the spouses joint in debt. This implies that if the borrower is no longer able to repay (job loss, illness, poor budget management, etc.), the lender may claim the amounts due to the co-signer.
Common-law spouses do not have any common financial responsibility. Income is always personal, just like property or debts. Only the presence of a child makes the couple financially responsible in some way. Parents in single cohabitation are required to contribute financially to the good education of their child (ren). It is therefore necessary to think carefully before taking out a loan with co-borrower in common-law.
Consumer credit with co-borrower
All conventional loan formulas (car credit, work loan, personal loan, revolving credit, etc.) are subject to consumer loan laws. With the exception of the mortgage, online credit is the easiest way to obtain consumer credit with a co-borrower. Our credit form with immediate response integrates the co-borrower. It is enough to indicate a spouse (married, civil union, cohabitation) on the first screen, before having the possibility of associating it or not with the request for credit. Do not forget to indicate whether he is a co-borrower or not, as in the example below.
Borrow with a FICP = mission impossible?
It is impossible to obtain a consumer credit for two if one of the borrowers is registered with the FICP (national file of repayment incidents). Bank of France files will be automatically rejected, forcing the other borrower to apply for credit alone. A spouse registered on the FICP must therefore take steps to cancel the file in order to have the possibility of borrowing again. Redeeming the outstanding debt by opting for a loan repurchase is undoubtedly the simplest solution. Once the redemption file has been accepted, the organization will inform the Banque de France that the situation has been rectified, leading in the short term to removal from the list.
Mortgage with co-borrower
It is common for a couple to decide to co-borrow to buy property. Borrowing for two allows you to bring serious weight to your request for real estate credit, especially when the two applicants have a job. As in the case of a consumer credit, the two signatures then agree to reimburse the credit jointly.
How to cancel a loan with co-borrower?
It happens that certain couple projects do not succeed, especially during a separation. Two solutions are then available to borrowers to quickly end their current credit:
- Repay the loan in advance, for example by selling the property acquired before repaying the lending institution in full.
- Transfer the credit to a single borrower. This requires getting closer to the lender. However, the latter is not obliged to accept the request. Opting for a credit consolidation can in this case make it possible to calculate monthly payments more suited to the financial situation of the single borrower.