At first, one might think creditworthiness means that a borrower can borrow and repay. This is not the case, this fact falls under the concept of creditworthiness. On the contrary, creditworthiness means that the legal requirements are to take out a loan.
Creditworthiness of individuals
For individuals, this is not difficult to verify for a bank. You must be of legal age and moreover fully capable of acting. The law prohibits in this country that minors may borrow.
The age of majority of the applicant is assumed by each bank in our private credit comparison. For those who are under the age of 18, the formal requirements for lending are generally not met. Incidentally, this is no different with a loan from private to private via so-called P2P credit marketplaces. Even there you will not get a loan as a minor.
Minors may not own a traditional credit card or a MasterCard, which allows for possible overdrafts. The age of majority is a prerequisite for the use of all forms of a loan:
- installment loan
- line of credit
- Classic credit card
- Credit card for checking account
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However, there is a limitation. A loan can be awarded to minors if, on the one hand, the parent subscribes to the loan agreement or, on the other hand, a corresponding permit has been issued by the family court (BGB, §1822, 8).
If the borrower is not eligible for credit within the meaning of the law, the loan agreement is void from the beginning. Therefore, it is in the interest of a bank to check whether the potential borrower meets the appropriate conditions before lending.
He must only be liable for the obligations under the loan agreement if he is eligible for credit. If the loan is paid out and the customer does not pay back, the bank has a problem.
It can only act against the borrower if the contract is legally binding, a circumstance that is not given in the absence of creditworthiness. The bank would have to write off the loan as it has no authority against the signer or a third party if creditworthiness is not met.
Creditworthiness in companies
For a company or other legal entity, the credit check is more complex. The Bank must use the available documentation to verify that the Company’s representatives are authorized to borrow money from the Company.
The legality arises on the one hand from the relevant legal texts, on the other hand from shareholder contracts, commercial register or association register extracts and the respective statutes.
Surf tip: Compare now the current loan offers for self-employed and freelancers According to the German Commercial Code (HGB, §49), it is generally the case that, in addition to the board of directors of a company, authorized signatories are allowed to borrow money for the company as long as they do not have to charge any land. For authorized representatives this authorization does not automatically apply, but must be issued individually by the management.
A special feature is the borrowing by a public body. This requires, depending on the state, the approval of the municipal supervision.
Creditworthiness of unincorporated communities
First of all, it has to be clarified what an unincorporated community of persons is. This generic term includes BGB companies, unincorporated associations and heirs.
These three groups involve a merger of several persons without a legally defined representative body to the outside and without representation authority.
If one of these communities wishes to take out a loan, all members of the community must sign the contract. In addition, the credit agreement must specify joint and several liability.
Creditworthiness of married couples
With married couples, the matrimonial property regime also plays a role within the framework of creditworthiness. Of course, couples who are under guardianship are fully eligible for credit. For the bank, however, the question of collateral is crucial and this is where the matrimonial property comes into play.
The property community requires the consent of the spouse.
separation of property
In the framework of the separation of property, no consent is required because the spouse can not be held liable for the loan.