How to build credit score Safe personal loans Low-interest personal loans with APR Starting As Low As 3.49%

Joint Personal Loans with Bad Credit

Despite the rise in rates, banks and other financial institutions still report a high number of borrowers. While there could be lots of explanations for this, one is key. The fact that even individuals with poor credit can borrow loans.


Yes – people with a poor credit profile can access joint and co-signed loans. These loan products can also unlock higher loan limits for people with good credit scores. Another person’s credit history and income information on your loan application can be a game-changer.


These loans are good, especially if you plan to use and repay them together. In this article, we explore everything about personal loans for bad credit. We’ll also point you to some of the best lenders in the market today.

  • Est APR
  • Amount
  • Min Credit Score
OneMain Financial
  • 18.00 - 35.99%
  • $1,500 - $20,000
  • None
  • 4.49 - 20.49%
  • $5,000 - $100,000
  • 660
  • 8.05 - 35.89%
  • $1,000 - $40,000
  • 600
  • APR range
  • Fees
  • Terms
  • Amounth
  • Unemployment protection
Bank 1
  • 6.95%–35.89%
  • Up to 5% transfer fee
  • 3–5 years
  • $1,000–$40,000
  • No
Bank 2
  • 6.95%–35.89%
  • Up to 5% transfer fee
  • 3–5 years
  • $1,000–$40,000
  • No
Bank 3
  • 6.95%–35.89%
  • Up to 5% transfer fee
  • 3–5 years
  • $1,000–$40,000
  • No

Note: Bank and financial institutions change their rates from time to time based on such factors as the state of the economy, provisions of the central banks, and more. For that reason, we do our best to update this information as regularly as possible. However, ensure you do your due diligence before borrowing.

Table of Contents

How do joint personal loans work?

Joint personal loan products allow borrowers (usually with bad credit scores) to apply for a loan jointly with another person. The other borrower usually has a higher credit score, excellent credit profile, and more stable income.


The principal borrowers usually can’t qualify for the loan on their own. Adding another person, therefore, not only guarantees the loan approval but also unlocks higher loan limits, too. It also unlocks lower rates and more flexible loan terms.


While most borrowers who go for joint personal loans use and repay them together, individual borrowers can also include another person while borrowing but use and repay the loan alone. 


Either way, both the borrower and co-borrower are tied to the hook. And, late repayment or total failure to repay the loan will affect the credit reports of both parties. 


Joint personal loans are also a good deal to lenders. They are considered less risky. Chances of repayment are high when more than one borrower is involved. That’s why joint personal loans are easy to qualify for and they come with lots of benefits. 


Credit unions are still the best shot for this loan product. They work with borrowers to ensure better loan terms.

Can I get a joint personal loan with a bad credit score?

Yes, borrowers with poor credit scores can qualify for personal loans. Together with a co-borrower with a stellar credit score, good credit history, and stable income, a borrower can go for joint personal loans for bad credit scores. 


Again, most personal loans are not secured. Borrowers, therefore, don’t need collateral for these loan products. They heavily rely on the credit profile of the borrowers, mostly the co-borrower.


Apart from joint personal loans for bad credits, most financial institutions have other personal loan products for people with bad credit. However, they are likely expensive. Most come with higher APR and the repayment terms may not be flexible. 


Such include secured loans – backed by collateral such as a vehicle, land, house, or any valuable asset. They also include unsecured loans.


The terms, and basis to categorize borrowers as weak credit varies from one lender to another.

Requirements to qualify

Different lenders have different set standards that borrowers must meet to qualify for joint personal loans for bad credit. 


But even before considering the lender requirements, it’s crucial that the borrower and the co-borrower fully understand their obligations. They both have equal rights to the funds or property financed by the funds. They are also both obligated to repay the loan. 


Once they have this settled, they can find a suitable lender with favorable terms. 


The most basic requirement among most lenders is that you must be aged 18 years and above. You must also be a legal resident of the United States. Lenders will need your National ID or valid driving Licence or passport to verify this.


You’ll also need to provide such personal details as your name, social security number, and address. The lender will also likely check on your employment status, account activities, and credit history.


Other financial institutions, mostly banks, might require that you must have operated a bank account with them for a certain period before applying for the loan. 


Remember, the credit profiles of both the borrower and co-borrower are considered. However, you stand a better chance, if one of you has a stellar profile. 


While you are free to choose anyone, related or not, to be your co-borrower, those who choose a relative or spouse stand a better chance.

Hot Tip:

You will need to provide such personal details as your name, social security number, and address.

Types of joint personal loans with bad credit

Joint personal loans are mostly unsecured. However, there are several personal loan products you can choose from. They include;


1. Secured joint personal loans

Here, you’ll need collateral to act as security for your loan. That can be your home, car, boat. Basically, any asset whose value exceeds the loan you’re looking to borrow.


The lender retains the right to seize and sell the property should you default on payment. You’ll be asked to repay the deficit if, after resale, the amount does not clear your loan. 


Because they are less risky to the lender, you can easily qualify for them. And, they also attract low-interest rates and flexible terms.


Other common secured personal loans include mortgages with your home as security and car loans whose security is the car title. 


2. Unsecured personal loans

These are not backed by collateral. They are, therefore, less risky to borrowers. 


However, that makes them risky to lenders. They, therefore, attract slightly higher interests than their secured counterparts would. 


Normally, that’s supposed to make their approval stricter. However, unsecured joint personal loans are different. Their approval relies heavily on the credit score and the stability of the income of the co-borrower. 


The idea is to find someone who meets requirements you’d otherwise not.


3. Fixed-rate joint personal loans

These loan products, as the name suggests, come with fixed rates. You, therefore, pay the same rates, or otherwise called installments throughout the loan term. 


At the same time, makes you immune to changes in interest rates. Hence, you’ll be paying consistent rates all through. That also makes it easier for you to budget and eliminate the chances of late repayments or complete loan defaulting.

How much can you borrow?

Different lenders have different limits with which borrowers can borrow. Our selected lenders above offer between $1000 and $100,000. 


The lender will determine how much you can borrow after thoroughly assessing your income, credit score, and credit reports. The lender will also assess your co-borrower’s credit reports and income.


Most have tools on their website that will help you calculate your expected repayments based on how much you’d like to borrow, the expected loan term, and interest rates.


To increase your chances of qualifying for higher loan limits with bad credit, choose a co-borrower with a stellar credit score and stable income.


Remember, the loan is the responsibility of you and the co-borrower. You, therefore want to properly brief them before committing. Ensure you properly explain everybody’s role in the arrangement.


You should also take steps to repair your credit score for higher limits in the future. Such include repaying existing loans. We’ll explore more steps later in the post.

Hot Tip:

The loan is the responsibility of you and the co-borrower. You, therefore want to properly brief them before committing.

Joint personal loans with bad credit score for self-employed

Yes- self-employed people can also access personal loans. However, they tend to have limited options than those who are employed, especially if they have bad credit scores. 


They have to prove to the lender that their income is sufficient and regular, and they’ll be able to repay the loan. You do so by presenting your financial documents to the lender for verification. That includes bank statements showing regular deposits and withdrawals. 


Some lenders may also request some years’ (mostly 2 years) tax return transcripts. Proof of rental income may also bail you out with some lenders. This is mostly shown mortgage documents and bank statements.


You may also go for unsecured personal loans. They are easier to qualify for. You only have to attach an asset whose value equals or exceeds the loan you wish to borrow. Remember, the lender won’t repossess the asset before the loan term expires. And, even when it expires, they’ll only do so if you fail to fully repay the loan. 


Alternatively, you can get a co-borrower with a stellar credit score. As long as they can meet the minimum requirements of the loan, you’re good to go.


Remember, you’re all responsible for deciding how you’ll use the funds, as well as how to repay them.

Boost your credit score NOW

A bad credit score will have you missing out on many cheap and flexible loan products. Boosting your score is possible, and though it might take longer, you’ll eventually crack it if you’re determined to. Here are a few steps you can take to boost your score;


  1. Repay your loans – this is the first and among the most basic steps. Paying off your existing loans will see lenders updating your credit reports positively. This will significantly boost your scores. While at it, resist the urge to borrow more loans. This can make it harder for you to recover. Also, remember to repay your credit cards on time. A single late repayment can drag your score down by up to 50 points. 
  2. Go through your credit reports – regularly request your credit reports from any of the three common credit agencies – Experian, TransUnion, and Equifax. Be careful to spot any errors or inconsistencies. When you do so, notify the agency immediately and file a dispute. 
  3. Leave your credit accounts open – Don’t close your credit accounts, even ones you no longer use. This will help you increase your credit utilization ratio, which ultimately boosts your score.
  4. Pay your bills on time – the whole point of lenders requesting your credit reports is to see how prompt and reliable you are with paying your bills. They use this to predict if you’ll repay your loan should they offer you one. Ensure your student loans, rent, utility bills, auto loans, even phone bills are paid on time for higher scores. 
  5. Keep your credit card balances low – Don’t over-utilize your credit cards. Ensure your usage doesn’t exceed the maximum. You’re advised to keep it at 30% or lower. This is an indicator to lenders that you can accommodate ore loans and manage the repayments well.

Frequently Asked Questions (FAQ)

Yes. Lenders will willingly offer you a loan as long as your co-borrower meets all the minimum requirements of the loan. They mostly look at the credit score and stability of income.

Credit Unions are your best shot. They work towards affordable loans and flexible repayment terms. However, banks are good, too. The table above shows our best lenders for joint loans with bad credit.

Joint personal loans can be used for pretty any purpose. You can use them for debt consolidation, to pay rent, pay for medical bills or sponsor a vacation.

Anyone looking to borrow a loan but doesn’t meet the minimum requirements. Joint personal loans are also good for borrowers looking to hit a higher loan limit, lower interests, and more flexible terms.

You can borrow from $1000 to $100,000 with our top lenders above.

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