There are many types of guarantees, from CDI to mortgage and insurance. Let’s take stock of the guarantees for a loan.
Parents are the first guarantors of their children.
When you make a loan, whether with a bank or with an individual, the lender wants to be sure that he will get his money back. There are two ways to present collateral to our money lender. The first is to have a ” guarantor “, a person who is willing to pay in the debtor’s place if he can no longer pay. The second solution: to provide a ” guarantee “, a sum of money or a good which will enable the creditor to pay himself back if his debts can no longer be met.
The guarantees given to the lender, the bank, therefore make it easier to obtain credit. Everyone knows the expression “we only lend to the rich” but we can find ways to no longer have credit refused, even if at the beginning, we have no guarantees to give…
ANIL calculator, a page of the National Agency for Housing Information, where we can calculate the cost of a mortgage guarantee, then compare with the results obtained with the Housing Credit Calculator. AERAS convention, allowing people with “aggravated health risk” to obtain insurance.
The mortgage insurance remains quite expensive,
The rates of about 0.4% in 2014, but remains necessary: if for example we make a loan to two (husband and wife for example), and that the husband came to die during the repayment period, the woman will be very happy to be insured! The insurance is flexible: we can decide which of the two borrowers will be the most insured. For example, the husband can be insured on 70% and the woman on 30%. If the husband dies, he will only have 30% to pay. One can very well consider a 100% for the husband and 0% for the housewife. If the husband dies, the woman will have nothing to pay, the insurance reimbursing 100% of the loan. If it is the woman who dies, the husband will always have to repay the loan in the same way.
There is also insurance for conventional consumer credit. If we take as an example the offers of Yoabank or Bankil for a car loan, it will cost between 30 and 40 euros per month for the duration of the loan to be insured.
Our article on the “debts of the ex” is emblematic: a cohabitant who vouches for his companion (or companion) will always pay the credit, even after their separation.
Joint and several guarantor in credit
The ” surety bond ” (or “guarantor”) is the person who will pay a debt in place of the borrower. If the person who has made a loan does not pay their monthly payments, the bank will be able to claim the money directly from the guarantor. The guarantor is therefore responsible for the loan, as a co-borrower.
The ” simple bond ” is less protective of creditors. It is only once after using all available remedies to recover the money from the debtor that the creditor can turn against the guarantor. The surety bond, we can see why, is widely preferred by creditors when guaranteeing credit.
In our article on warranties for rent, we saw how difficult it could be to bring all the right things to the homeowners so that they could finally rent their apartment. In credit, none of this, we will especially ask to have sufficient income, three times higher monthly payments of credits to pay, and a CDI.
The guarantor, the joint surety in credit is something quite unusual, but still possible to do, if the guarantors themselves are in conditions to have a credit: needless to think about his mother of 90 to guarantee a ready! Pawnshop is undoubtedly one of the best solutions. As a reminder, we ask for a loan, and we give in exchange a property “corporeal furniture” which covers the value of the loan. This good must have a physical reality: an object for example. If this credit is not repaid, the creditor keeps the property in question to pay for it. If we repay it, we recover our valuable good. This is a guarantee of family jewels, a work of art, valuable furniture. Guarantee a loan with life insurance.
Often, we hear about “collateral” in a car loan, where the car purchased is the property put in “pledge”. It is an abuse of language, this is a pledge.
The different ways to guarantee a loan: mortgage, insurance, deposit…
To make a credit, it will always be necessary to present guarantees to the financial institutions. We can present a CDI for example, with sufficient income to pay the credit and have a remainder to live worthy of the name.
But one can also, on large loans, have to supplement this guarantee by insurance and a mortgage. All this is relatively simple, credit criteria remain much more objective than those of a rental, often arbitrary and demanding.