Warning: Late repayment can cause you serious money problems. For help, go to MyMoney.gov. We are a broker, NOT a lender.
Warning: Late repayment can cause you serious money problems. For help, go to MyMoney.gov. We are a broker, NOT a lender.
If you're looking to access better financing terms or increase your borrowing power, applying for a personal loan jointly with a co-borrower might be the smart move. A personal loans joint application can help individuals secure more favorable personal loans rates, qualify for larger loan amounts, and potentially get approved even if one applicant has a lower credit score. But how do joint personal loans work, and when does it make sense to apply with someone else?
In this guide, we explore how joint personal loans function, the benefits and risks, and how credit scores from each applicant affect approval. Whether you're applying with a spouse, partner, or trusted family member, understanding the process is key to making a strong financial decision.
A joint personal loan allows two people to apply together for a single loan. Both applicants’ financial profiles are reviewed during underwriting, and both parties are equally responsible for repaying the debt.
This is different from a cosigner, who agrees to repay the loan only if the primary borrower defaults. In a joint application, both individuals are considered co-borrowers from the start.
Most banks, credit unions, and online lenders offer joint personal loans. Joint applications are commonly used by:
Applying jointly can provide better access to funding, especially when one party has a stronger financial profile.
One of the biggest advantages of personal loans joint applications is that lenders assess both applicants’ income, credit score, and debt-to-income ratio. This can:
If you’re wondering what credit score is needed for personal loan approval, most lenders look for a FICO score of 600 or higher. When applying jointly, if one borrower has a score in the high 700s and the other is closer to 620, the stronger score can help qualify for better terms.
You can find more details about joint loan benefits on Experian.
Rates for joint personal loans vary by lender and are influenced by the combined creditworthiness of both applicants. According to data from LendingTree, the average interest rate for personal loans in 2026 is around 11.5 percent. However, with strong credit, joint applicants may qualify for:
Some online lenders, like SoFi or LightStream, even offer rate discounts for setting up autopay or direct deposit. Always compare rates and terms before choosing a lender.
If you're a member of Navy Federal Credit Union, you have access to personal loans with favorable terms. Navy Federal allows joint applicants and offers:
As a not-for-profit institution serving military families, Navy Federal is known for lenient underwriting standards and flexible repayment options. They also provide tools to estimate personal loan costs before applying.
You can explore their offerings on the Navy Federal Credit Union homepage.
Joint personal loans are best suited for borrowers who:
If one applicant has a low credit score or unstable income, a joint application may still be risky. Any late payments or defaults will appear on both applicants’ credit reports and can affect future borrowing ability.
Before signing any joint loan agreement, make sure expectations for repayment and responsibility are clearly outlined.
If a joint loan doesn’t feel right for your situation, here are some alternatives to consider:
1. Cosigned Loans
A cosigner agrees to back the loan without being responsible for monthly payments unless the borrower defaults. This can help borrowers with lower credit qualify.
2. Secured Personal Loans
Offering collateral (like a car or savings account) can improve approval chances and reduce interest rates.
3. Credit Builder Loans
Some credit unions and online lenders offer small loans designed to improve your credit score. You repay the loan first, then receive the funds at the end of the term.
4. Balance Transfer Credit Cards
For debt consolidation purposes, balance transfer credit cards with 0 percent APR can be effective if you qualify.
To learn more about these alternatives, Money Under 30 provides a solid comparison of different loan products.
Both borrowers are legally responsible for the full loan balance, even if only one party uses the money. If payments are missed, both credit scores will suffer, and collection efforts will target both individuals.
To avoid issues:
Some banks allow splitting payments between borrowers, which can simplify the process.
You can read more about joint debt obligations at Credit Karma.
Before applying, review these steps to boost your approval chances:
Taking the time to compare lenders can save you hundreds or even thousands of dollars over the life of the loan.
Personal loans joint applications can offer real financial advantages. Whether you're consolidating debt, funding a wedding, or handling unexpected expenses, applying with a trusted partner can improve your approval odds and unlock better personal loans rates.
Still, it’s critical to understand the risks. Both borrowers are equally responsible, and any misstep can affect your credit for years to come. Be transparent with your co-borrower and choose a lender that fits your long-term goals.
If you're a member of Navy Federal Credit Union or considering lenders like LightStream or SoFi, joint loans can open the door to better terms and broader access. And if you're unsure whether your credit profile is strong enough, take the time to review your score and build a solid foundation first.
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