Share equal responsibility for payments and get your application over the line.
Whether you’re looking to finance a car, home renovations or a vacation, there isn’t only one way to secure that financing. Applying for a personal loan as part of a joint application could help you tick more eligibility boxes than you could on your own. It’s also a way for you and your partner to assume equal financial responsibility for a large purchase.
Find out which lenders offer joint applications and how they work.
LendingClub Personal Loan
As an alternative to bank loans, LendingClub offers loans of up to $40,000 to use for a variety of purposes. Rates from 5.99 to 35.89 APR, based on your credit score.
- Recommended Credit Score. 660 or higher
- Minimum Loan Amount. $1,000
- Maximum Loan Amount. $40,000
- Loan Term. 3 to 5 years
- Turnaround Time. Up to 7 days
- Total Costs. Depends on your credit score
Which lenders offer joint applicant personal loans, and are there any conditions?
|Lender||Joint applications accepted?||Eligible loan types||What conditions are there?|
|Bank of America||Auto refinance||Required documentation includes: W-2s (for the last 2 years); recent pay stubs (two most recent consecutive); bank statements for all financial accounts, including investments (for the last 2 months, all pages); signed personal and business tax returns (all pages and relevant schedules); a copy of most recent quarterly or year-to-date profit/loss statement (if self-employed); most recent monthly statement for any mortgage, home equity loan or line of credit (if you own a home)|
|Chase Bank||Auto loans||You’ll need to provide personal information (including name, Social Security number, date of birth), contact information and current employment and income information for each person applying.|
|LendingClub||All borrowing reasons||The lender will consider both of your qualifications, including but not limited to, credit scores, income, debt-to-income (DTI) ratio and credit history. You and the joint applicant will be equally responsible for repaying the loan and the lender will consider both of your qualifications in the application process.|
|OneMain Financial||Secured and unsecured personal loans||When the income or assets of a person other than the main applicant is being used as a basis for the loan qualifications, co-applicant information must also be provided. Co-applicant information is also required if the property being used for security on a secured loan is jointly owned.|
|Wells Fargo Bank||Auto loans, Home equity finance||A co-applicant can be a spouse, partner, relative, family friend, or another who shares the loan responsibility with you.|
How do you apply for a joint personal loan?
You and the person you’re applying with will provide personal, employment and financial details as part of the application. This may be done in one application or in separate sections. The lender will consider the application details as a whole when considering both your eligibilities for the loan.
Important things to remember about joint application personal loans
Before you start your application, there are a few things to consider:
- If you are approved, you will assume equal responsibility for the loan with the person you are applying with. This means if either one of you becomes unable to repay, the other is still responsible for the entire repayments.
- Both applicants will need to meet the criteria for the personal loan.
- You may be eligible for a higher loan amount when submitting a joint personal loan application. It’s important not to take on more of a loan than you need or can afford, even if you are approved for it.
- Joint personal loans are a serious responsibility. Consider the relationship you have with the person you’re applying with and their financial situation. Is their job stable? What is their credit history like? Are they likely to default? These are the things you may need to think about when taking on the responsibility of a loan.
What are the benefits of applying with another person?
Joint application loans can be a viable option for several reasons:
- Increase your chances of approval. If you are on a lower income, self-employed or just want to bolster your application, a joint personal loan can be a way to do it. The details of both applicants will considered by the lender.
- Share an asset. If you’re planning to share the asset you’re purchasing, such as buying a car with your partner, a joint application could make more sense than one of you applying by yourself. Consider your own personal situation to decide what will work best for you.
- Be eligible for a larger loan. You may be eligible for a larger loan if you apply with a partner. As you both agree to manage the repayments, the lender will consider the income and financial situation of both applicants when deciding how much to lend you.
- Consolidate large debts. If you and your partner have large debts separately, you can both save by applying for a joint debt consolidation personal loan. You can split the monthly repayment according to how much debt you contributed to the loan and benefit from the reduced interest and fees.
Joint personal loans can be a convenient option for people who want to share equal responsibility in a large purchase. It can also help bolster your application and chance of approval if you have a lower income or otherwise don’t meet all of the lender’s eligibility requirements on your own. It’s important to think about who you are entering into the agreement with, both you and their ability to manage the loan, and whether you’re taking on the right loan for the both of you.