When you are young you are full of plans and dreams. In practice, however, it is not always easy to realize these plans and dreams. Often you simply do not have the financial resources for it. Borrowing money is then a possibility that you can consider, but here too you can sometimes come home from a cold fair.
A possibility that you can still use is borrowing money with the guarantee from parents because there is then an extra security available for the lender.
Borrow money with guarantee from parents
In recent years there has been a lot to do around the financial sector, you must have noticed. The consequences of all these developments are that the standards and requirements in the field of borrowing have been tightened considerably. Because of this, you may not be able to borrow the amounts you need to make your plans and dreams come true.
Is nothing possible at all?
Fortunately, there are more roads that lead to Rome and there are opportunities to borrow money when you are young. This is called a “loan with a guarantee from parents”.
The guarantee from parents gives the bank or financial service provider more security. And here it is ultimately all up to them to make sure that the loan granted is also repaid. In the event that you cannot meet the payment obligation of the loan, the lender will turn to your parents. The advantage of a loan with a guarantee from parents is not only that you can borrow a higher amount, in many cases you also get an interest discount.
For which type of loans
The loan with a guarantee from parents is possible for various forms of loan. It is possible to use this guarantee for both a revolving credit and a personal loan. You choose a revolving credit if you need more flexibility in terms of borrowing and you choose the personal loan if you opt for certainty with regard to the interest and monthly installments to be paid.
Also for mortgage
In addition to these two forms of consumer credit, you can also use your parents’ guarantee to take out a mortgage. This may make it possible for you to buy together or only the house / apartment that you have set your sights on. Discuss this possibility of borrowing money with your parents.
When they want and can help, your dreams may come within reach. The mortgage interest rate is historically low, so be well informed so that you can make a good decision, since a mortgage will be tied to you for a long time.