The main aspects of obtaining a personal joint loan

Adding a co-borrower to your loan application can make it easier to get a loan: you will represent a lender with a more significant total income, assets, and a potentially more robust credit profile. When you take out a joint loan, you and your co-borrower are equally responsible for repaying the funds. While you can utilize a personal loan to pay for just about anything, it's essential to understand what repayment entails before taking out a loan. Before taking out a joint personal loan, make sure you know what is a joint loan application.

What is a joint loan?

A joint loan is when you and the other borrower share equal responsibility in paying off the loan. Each of you will assess your creditworthiness and sign the same loan documents. Since each of you will be equally responsible for the loan, you will generally share whatever was used to purchase the loan.

If you are jointly applying for a mortgage, this may help you get approved for a larger mortgage. It will also mean that you and the other borrower will have an equal share of the property.

If you have a low credit score for a personal loan, the lender can be more inclined to approve you for a personal loan if your co-applicant has a strong credit history. Likewise, your two-income joint loan application can make it more likely that a lender will give you a larger loan.

What can happen with a joint loan?

As with any partnership, business, or personal, co-applicant relationships can deteriorate or even end over time. If this happens, you must determine how best to split the debt over the remaining maturity.

A joint personal loan online can also be tricky regarding credit. One borrower's bad credit can mean higher interest rates for both of you, and a lender may deny you a joint loan because of your co-applicants lousy credit. Being behind on payments – or defaulting – can cause your credit scores to suffer.

On the other hand, adding a co-borrower with a good credit history can improve your chances of getting a loan when you can't qualify on your own. If both of your credit profiles are good, applying together can result in even better terms and higher loan amounts than either of you could get on your own.

Let's discuss the pros and cons of a loan joint.


  • Present lenders with higher qualifying total income

  • Compensate for the weaker history of the second borrower

  • Allow borrowers to make a larger down payment.


  • Can ruin relationships between applicants

  • It may reduce the likelihood of loan approval if one borrower has a bad credit history.

  • Lead to a drop in the credit rating for both borrowers if the loan payments are late or if the loan is not repaid.

Many people think is joint personal loans for married couples the same as cosigned loans. Not really. A loan guarantor is different from a co-applicant. The loan cosigner assumes responsibility for the loan without any claims of ownership of anything purchased. If you have weak credit, a cosigner with an excellent credit history can help you qualify for a loan you might not otherwise get. On the other hand, the cosigner is also responsible for ensuring that the loan is repaid, so in the event of a default, your cosigner's finances or credit will also suffer.

Where to look for a joint personal loan?

You can ask different companies for help. Most popular options:

  • LendingClub is a peer-to-peer lending company: it means that, unlike a bank, credit union, or online financial institution, your joint personal loan online will instead be funded by another person or institutional investor. LendingClub offers a wide range of annual interest rates.

  • LightStream is the online division of Truist Bank (formerly SunTrust Bank). It offers mortgages, auto loans, and personal loans for various needs. It also provides a wide range of personal loan repayment terms (from 24 to 144 months) and same-day financing after loan approval.

  • OneMain Financial offers personal and joint loans for smaller amounts than LightStream and LendingClub, and generally shorter loan terms. OneMain Financial also offers same-day financing options.

Apply for loans for joint applicants in one of the listed companies without any problems.

How can you apply for a joint personal loan?

You need to follow a few simple steps to apply for a loan:

  • Check your rate: open your lender's website to see if they allow co-applicants and, if possible, determine the rate you both can get based on your credit scores and shared personal details.

  • Fill out joint loan application bad credit: Check the «Joint application for personal loan» box so that you and your co-applicant can provide any required details.

  • Review your offers: if you get multiple loan offers, you and your co-borrower must review each one carefully and agree to the terms that suit your needs. Specifically, to obtain a loan from OneMain Financial, you will chat online, meet in person or speak on the phone with a loan officer to discuss options, review documents, and provide proof of any required collateral. After you get approved for a loan, your lender will run a rigorous credit check, lowering your credit score to drop temporarily.

  • Accept a joint loan agreement: after accepting a joint personal loan, you and your co-borrower will sign a loan agreement together. At this time, you will also need to set up your financing loan by selecting the bank account you will use for regular monthly payments.

If you're not worried about overdrawing your account, it might make sense to set up automatic payments so you never miss a bill. Learn more about how autopay can improve your credit score.

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