Best Joint Personal Loans Of August 2024 (2024)

Compare Personal Loan Rates

Summary: Best Joint Personal Loans of 2024

Company	Company - Logo	Forbes Advisor Rating	Forbes Advisor Rating - Image	Minimum credit score	APR Range	Loan amounts	Learn More CTA text	Learn more CTA below text	Learn MORE
SoFi®		5.0		650	8.99% to 29.99%	$5,000 to $100,000	Compare Rates	Via Credible.com’s Website
Upgrade		4.8		580	8.49% to 35.99%	$1,000 to $50,000	Compare Rates	Via Credible.com’s Website
LightStream		4.7		660	6.99% to 25.49%	$5,000 to $100,000	Compare Rates	Via Credible.com’s Website
LendingClub		4.1		600	8.98% to 35.99%	$1,000 to $40,000	Compare Rates	Via Credible.com’s Website
PenFed		4.1		Does not disclose	As low as 8.99%	$600 to $50,000	Learn More	Via Fiona.com's Website
U.S. Bank		4.1		Does not disclose	8.74% to 24.99%	$1,000 to 50,000 to existing U.S. Bank customers (up to $25,000 for noncustomers)	Compare Rates	Via Fiona.com’s Website

Best Joint Personal Loans Of 2024

Complete Guide to Joint Personal Loans

• What Is a Joint Personal Loan?
• Tips for Comparing Joint Personal Loans
• Methodology
• How To Apply for Joint Personal Loans
• Alternatives to Joint Loans
• Can You Get a Joint Personal Loan With Bad Credit?
• Joint Loan Vs. Individual Personal Loan
• Pros and Cons of Joint Personal Loans

What Is a Joint Personal Loan?

A joint personal loan is any loan applied for with a co-signer or co-borrower. When you add a co-signer or co-borrower to a loan application, lenders consider the creditworthiness of both applicants. Adding a co-signer or co-borrower with good credit can improve your chances of approval if you have poor or limited credit.

Although they function similarly, co-signers and co-borrowers are different. Co-borrowers—also known as co-applicants before the loan is approved—have access to the loan funds and are equally responsible for repaying the loan. On the other hand, co-signers don’t have access to the loan funds and only become responsible for the loan once the primary applicant stops repayment.

Tips for Comparing Joint Personal Loans

Consider these tips when comparing jointpersonal loans:

• Both borrowers must be able to qualify.Because lenders consider both applicants’ information, both borrowers must meet that lender’s minimum credit score requirement. If you do have a qualifying score, adding a second borrower with a strong credit and income history could help you receive more favorable terms, like lower interest rates.
• You can’t use a co-signer.Whileco-signerscan help you qualify for a loan if you have damaged credit, the lenders on this list that offer unsecured personal loans won’t let you apply with a co-signer. Co-signers are typically eligible onsecured loans,including auto loans, mortgages or home equity lines of credit.
• If possible, prequalify.Several lenders offer the opportunity to prequalify you for a personal loan. This means you can submit details like your income information, desired loan use, housing situation and other information. Prequalification also only requires asoft credit check,which doesn’t hurt your credit score, so you can safely find the best rates.
• Check for additional fees.Some personal loan providers charge no origination fees, late payment fees or prepayment penalties. However, there are some that may charge all or some of these fees. When comparing personal loans, be sure to look at the fee structure beyond the potential interest rate you can receive.
• Evaluate the lender’s customer support options.If you’ve found a lender, there’s one more thing to consider before signing the loan agreement. While customer support may not seem like a big deal, it can make a huge difference if you encounter issues with payments or face a financial hardship during your repayment period. Review the lender’s customer service resources and read reviews to make sure it’s a good fit.

Related:Compare Personal Loan Rates

How To Apply for Joint Personal Loans

While the process may vary depending on your specific lender, here are the general steps you can follow toget a joint personal loan:

• Check both borrowers’ credit scores. Start bychecking both borrowers’ credit scoresthrough each person’s credit card provider or another credit-providing website. This will help you understand which lenders you can or can’t qualify for, since lenders consider both applicants’ credit histories.
• If necessary, improve either of the borrowers’ scores. If either of the borrowers’ scores is below 610 or you want to boost both of your scores to receive the most favorable terms, take time toimprove your scoresbefore applying. You can do so by taking various actions like lowering your credit usage or paying off unpaid debts.
• Evaluate your budget. Before finding the right lender, evaluate your budget and understand how much loan you can afford. Only borrow what you need because you’ll owe interest on the entire balance. Apersonal loan calculatorcan help you estimate your monthly payments.
• Prequalify with multiple lenders. Some lenders offer aprequalificationprocess, which lets you see what terms you may receive once approved without ahard credit check. Utilize this as a way to find the best offer for your situation.
• Submit your application. Once you’ve found your preferred lender, submit an application online or in person. There will typically be an option to apply for a joint loan or add a co-borrower. Both borrowers should be prepared to provide their personal information, such as their Social Security numbers (SSNs), address and income information.

Alternatives to Joint Loans

Joint loans may not work for everyone, and there are other options to consider if you need financing, including:

• Bad credit loans. If you don’t have someone willing to be a co-borrower on your loan application, you may need to look for lenders where you can qualify on your own. Many lenders offer bad credit personal loans but keep in mind that interest rates and fees can make these loans very costly.
• Secured loans. Secured loans can have lower qualification requirements than unsecured loans since you’re required to secure the loan with collateral—something of value like a car or jewelry. If you default on a secured personal loan, lenders can repossess your collateral to cover the cost of the loan.
• Cash advance apps. If you only need a small loan, cash advance apps can be a good option if you can repay the loan by the end of the term. While these loans can be easy to access, interest and late fees can make them costly.

• Loans from family or friends. If a friend or family member is willing to lend you money, this can be a good option to cover a temporary cash shortfall. Before accepting any loan, be sure to write a promissory note so there’s an understanding of how and when the loan will be repaid.

Can You Get a Joint Personal Loan With Bad Credit?

Whether you can qualify for a joint personal loan with bad credit depends on the lender. Both borrowers need to meet minimum credit requirements to get approved, and having a credit score above 620 gives you the best shot at qualifying for a joint personal loan.

However, some lenders on the list above may accept scores of 580 to 620, which falls into the “fair” FICO Score range. If you have bad credit, improving your credit can increase your approval odds and help you qualify for better rates.

Joint Loan Vs. Individual Personal Loan

A joint personal loan is a loan that involves two borrowers—a primary borrower and a co-borrower—applying on one application. In the case of a joint application, the lender will consider both applicants’ credit scores, income and overall credit history for qualifying purposes. Both borrowers are equally responsible for the debt obligations and repayment.

An individual loan, on the other hand, involves only one borrower. However, on an individual loan, the borrower can add a co-signer—a secondary person who agrees to pay back the loan if you fail to do so—to receive more favorable terms if they don’t meet minimum qualification requirements.

Co-borrower vs. Co-signer

Aco-borroweris typically utilized when two parties want to receive a direct benefit from the loan. This means while a co-borrower has equal rights to use the assets purchased with the loan, they also share responsibility for repaying the loan. Co-borrowers are most commonly your spouse, and the primary borrower and co-borrower’s credit scores are equally considered during the application process.

Aco-signeris typically a friend or family member who helps an applicant—usually someone with poor credit or no credit—qualify for a loan by agreeing to repay the loan if the borrower does not. Further, co-signers don’t have any ownership rights to the assets purchased with the loan and are not responsible for making payments unless the primary borrower defaults. Lenders typically rely more heavily on the co-signer’s credit score during the application process.

Related:Co-Borrower Vs. Co-Signer: Which Should You Use On Your Loan?

Pros and Cons of Joint Personal Loans

If you’re thinking about taking out a joint personal loan, consider the pros and cons before accepting a loan.

Pros of Joint Personal Loans

• May improve your interest rate. If your co-borrower has better credit than you, you may qualify for a lower interest rate.
• Could increase your loan amount. Lenders consider all income when reviewing an application for multiple borrowers, which can help you qualify for a larger loan amount.
• Lets borrowers share a debt burden. If multiple people will benefit from the loan funds, applying together as co-borrowers makes it possible to jointly repay the debt.

Cons of Joint Personal Loans

• A co-borrower with bad credit can drive up your rate. Both borrowers must meet minimum credit requirements to get a joint loan. If one borrower has bad credit, rates may be higher, or your application could get denied altogether.
• Missing payments can affect your credit. Payment history for joint personal loans shows up on the credit reports for each co-borrower. If you make late payments or miss payments altogether, that’ll damage both of your scores.
• You’re both responsible for debt. If your co-borrower stops paying back their share of the loan, you’ll still be held liable for the debt. Defaulting on the loan can also come with severe repercussions, like the debt going to collections or court.

Methodology

We reviewed 18 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose lenders that allow for co-borrowers and ranked them based on the weighting assigned to each category:

• Loan cost.35%
• Loan details.20%
• Eligibility and accessibility.20%
• Customer experience.15%
• Application process.10%

Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our.

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