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Co-applicant it is a person called signer of the credit application, it corresponds to the same extent as the applicant, at the same time taking advantage of the benefits arising from the responsibility and the credit[1].


Very often the applicant does not have sufficient creditworthiness, in which case it is necessary to use the methods of raising it. Namely, it is necessary to try to get someone who would like to join applicant with his own income, of course, with full awareness that the person will become responsible for the credit. A co-applicant can be anyone, not just a family member. It can also be a third party, completely unrelated to any degree of relationship with the applicant. Provided that co-applicant earns enough income and are of an age within the range set by the banks. Such a person must have their own creditworthiness, i.e. obtain regular income. From now on, the bank will investigate the total creditworthiness of both the lender and the applicant. It will be determined by the costs of maintaining the co-applicant, his family and his possible liabilities.


In a situation where a person with a relatively low income would join a credit, it would not make the slightest sense. In this situation, it may turn out that through its low earnings, not only will it not increase the creditworthiness of the applicant, but may even significantly reduce it. It is important to remember that the impact on the assessment of the ability is not only the income and obligations of the person with whom applicant are seeking a credit, but also its entire credit history, it has so far regulated its obligations to banks. If it turns out that in the past or now it has any problems with the timely repayment of the debt, the bank will not give credit. In addition, a person must be aware that after taking out such a credit, they will reduce their own credit opportunities. The installment due to the new commitment will be its additional burden.

Legal responsibility

The co-applicant and the applicant are jointly and severally liable for the entire credit obligation. They have a joint commitment to pay from the moment they sign the credit agreement. From now on, the bank will require payment of the same obligation from each of them. The mutual relations between co-applicants will be irrelevant for the bank. Most often, the bank undertakes the same debt collection activities for all applicants. If in the future something would go wrong between the applicant and the co-applicant - in the case of a case being brought to court and then enforcement proceedings, the claim will be satisfied from the co-applicant's income, which the bailiff will reach most quickly and most effectively.


The fact that in a credit agreement a third party is listed as a co-applicant does not mean that it is also a co-owner of, for example, real estate. The legal owner can freely dispose of the property, he can sell it without the consent and knowledge of the co-applicant.

Problems with repayment

If financial problems arise during the repayment of a credit taken with a co-applicant, a decision can be made to connect an additional applicant. From the moment of joining the loan agreement, he becomes equally liable with the other applicants for the credit obligation. He has the same rights and obligations as other applicants. And of course, it does not have to be a co-owner of the property[2].

Entities that can become co-applicants

Here's what the bank will take into consideration when considering the co-application indicated[3]:

  • monthly net earnings
  • internship and employment contract
  • maintenance costs (including costs of other dependents)
  • credit history and current financial liabilities
  • age


  1. (C. Foster,(2008), p. 27-29)
  2. (M. Bien, (2011), p. 75-84)
  3. (A. Zahl, (2018), p. 50-55)


Author: Kristina Tyshchenko