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

Joint Personal Loans

If you face difficulties getting your personal loans approved because of poor credit, you might want to consider bringing in a trusted third party. You’ll then share the financial benefits and loan responsibilities equally. 


Joint personal loans allow you to borrow with someone with a better credit score for larger loans and reduced interest rates. We’ve compiled everything to get you started. But first, take a look at the top lenders

  • Representative APR
  • Amount
  • Credit Score
OneMain Financial
  • 18.00 - 35.99%
  • $1,500 - $20,000
  • None
  • 4.49 - 20.49%
  • $5,000 - $100,000
  • 660
  • 10.68 - 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

Table of Contents

How do Joint Personal Loans Work?

A joint loan, also called a shared loan, is given to two or more borrowers. 


You’ll first search for suitable lenders. Joint personal loans are common with automotive and mortgage loans.


Once you find your preferred lender, you’ll then submit a formal application. The lender will likely ask for such personal information as the borrowers’ names and identification.


The lender will also look at the borrowers’ credit reports.


Once approved, all the borrowers have equal rights to the business financed by or asset bought from the proceeds of the loan. Similarly, the borrowers also have equal responsibility for repaying the loan.


Please note that joint personal loans will affect both your credit profiles, either positively or negatively. 

Requirements to Qualify

Like in other loans, lenders will look at both borrowers’ credit reports. A credit score of above 600 for at least one of the borrowers will get you a loan with most lenders.


Lenders will also check the debt-to-income ratio and the stability of income of both borrowers. The lender will also ascertain the employment history of both borrowers.


While lender requirements are crucial, knowing what to look for in a co-borrower is equally important. Here are some things you should consider;


  • Relationship: ensure you pick someone you personally know and relate well with. Picking a stranger you hardly know anything about could prove disastrous
  • Income-to-debt ratio: Ensure their earnings are higher than their present loans, and they are capable of servicing them
  • Credit score: Since lenders check this, it’s crucial that your co-borrower has a higher credit score, especially if yours is low
  • Stability of income: Understand your co-borrower’s sources of income and ascertain if they’ll be able to service the loan.

What do you need to know about?

Here’s a summary of the basics of joint personal loans;


  • Interest rates: joint personal loans generally carry lower interest rates. Our top lenders above offer an APR of between 4.49 and 35.99%. LightStream has the lowest interest rates. They also offer a 0.5% reduction on interest should you register for autopay.
  • Versatility: the decision on how to use the proceeds from the loan lies in the hands of the borrowers. You can use the money to purchase an asset, finance a business, or any projects
  • Credit score: Credit scores above 600 for the borrowers are desirable to most lenders. A higher credit score will have your loan approved fast. You’ll also have access to higher loan limits and lower interest rates. OneMain Financial, however, is willing to offer you a loan with no credit score limits
  • How long it takes to receive the funds: Most lenders will disburse your loan within 24 hours of approval
  • Repayment terms; Repayment terms differ depending on the lender, the amount in question, and the credit profiles of the borrowers. Most lenders will grant you a repayment period of up to 7 years
  • Security: You don’t need security to apply for joint personal loans. However, you’ll need a co-borrower with whom you’ll share the benefits and the responsibility of your loan. Relatives and close friends are the most preferred. They should have an excellent credit score, stable income, and good employment history so you have access to larger loans and better terms. 

Difference between a co-signed loan and a joint loan

Co-signed and joints loans often appear similar. In both instances, third parties are involved. However, they’re different loan products.


For cosigned loans, the loan responsibility isn’t shared. The co-signer only acts as security and agrees to repay your loan should you be unable to. Basically, the co-signer stands in for you without actually receiving any benefits.


Co-signers, therefore, have no right over the loan funds, or the property bought with proceeds from the loan. They’ll, therefore, also not make decisions regarding the same.


Co-signed loans are considered mostly by borrowers with poor credit profiles who wish to apply for larger loans.


For joint personal loans, however, borrowers share both the benefits and loan responsibility.


Since they have no right to the money, the co-signer also won’t have access to the loan information. Therefore, they can’t see such details as how much you’ve repaid and whether or not you missed your repayment.


For co-signed loans, borrowers with poor credit scores can be saved by their co-signer. However, for joint personal loans, most lenders will require that borrowers meet the minimum credit score requirement to borrow a loan.


However, you should note that both the co-signer and co-borrower face some level of risk. They’ll both have their credit profiles negatively affected should you miss out on the repayment.

Hot Tip:

For cosigned loans, the loan responsibility isn’t shared. The co-signer only acts as security and agrees to repay your loan should you be unable to. Basically, the co-signer stands in for you without actually receiving any benefits.

How much can you borrow?

You can borrow from $1000 to $100,000 with joint personal loans. LightStream and Sofi – online lenders, offer the highest amounts of up to $100,000.

How much you can borrow depends, first, on the lender. Go for ones with a wider range of the amount they’re willing to lend borrowers.


Your credit score is also an important determinant of how much you can borrow. Borrowers with an excellent credit score of 700 and above can access larger loan limits with almost any lender. They’ll also have more flexible repayment terms and lower interest rates. 


A credit score of above 640 will also grant you a loan with most lenders. Strive to maintain it at that. If you can’t, your co-borrower should.


You can build a better credit profile by repaying your existing loans. You should also be prompt with your monthly repayment of the joint personal loan so the lender can update both your credit profile and your co-borrower’s.

Cons and Pros of Joint Personal Loans

Higher chances of qualifying for a loan. Having a good co-borrower improves your chances of qualifying for a loan
Credit risk: Missing out on repayment could negatively affect your credit profile.
Loans for borrowers with poor credit score: Borrowers with poor credit profiles can access loans if they have co-borrowers with stellar credit profiles.
Should the co-borrower be unable to make a repayment, the lender will still hold you liable to pay the whole loan amount. Such are mostly seen with marriage partners who after taking a joint personal loan, separate or divorce. In such a case, only one borrower will be held culpable.
Better credit profile: Making prompt monthly repayment will have the lender regularly updating your credit profile. This way, you can build a good credit profile.
May reduce your chances of qualifying for other loans. Anytime you take a loan, your debt-to-income ratio increases. This can have other lenders denying you loans.

Co-borrower Loans

You may not need a co-borrower loan if you or the other party involved can qualify for a loan individually. One of you can still borrow, then you all chip in during repayments. You can still make it official by adding the other involved parties to the ownership deed.


This way, you’ll be making bigger repayments which come with such benefits as reduced loan interest rates and an increased loan-to-value ratio.


Adding a co-borrower will also give you access to larger loans. A single borrower’s income may not be enough for the lender in the case of more substantial loans such as home loans. Adding a co-borrower can help you crack the lender’s debt-to-income ratio.

Frequently Asked Questions (FAQ)

If you have a poor credit profile, including a co-borrower can help you reach the lender’s debt-to-income ratio. And that’s where joint personal loans come in.

Yes. Most lenders will readily offer you a loan if your co-borrower has a stellar credit profile.

A credit score above 640 will get you a loan with most lenders. A score of 750 and above – an excellent credit score – will see you access even larger loans and reduced interest rates.

Joint personal loans affect the credit scores of all the borrowers involved. Failure for one party repay will be reflected on the other borrowers’ credit profiles. Similarly, prompt monthly repayments by all the parties involved will reflect positively on all the borrowers’ credit scores.

For co-signed loans, the co-signer doesn’t share the benefits or the property financed by the proceeds of the loan. While in joint loans, the borrowers share the benefits and the responsibilities of the loan.

Fundzer for Funds
Enable registration in settings - general
Compare items
  • Total (0)