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Types
- Health insurance for Children
- Family health insurance
- Health insurance for over 50s
- Health insurance for over 60s
- Health insurance for over 70s
- Small business health insurance
- Corporate health insurance
- Group health insurance
- Health insurance for self-employed
- Comprehensive health insurance
- Health insurance for pre-existing conditions
- Couples health insurance
Cover
Insurers
Types
Eligibility
Applying for a joint loan might be a great idea if you’re married or living with friends or family. The loan funds are deposited into a shared account, which both of you can access for shared expenses, whether paying bills or making home improvements. What’s even better, they expand your borrowing options, helping secure the right personal loan for you. Below, you’ll discover all the essential details to help you and your partner-in-loan make the best choice.
How to apply for a personal joint loans
Comparing joint loans is crucial to find the best terms and rates. Here are the steps to take during the application process:
Compare loans
Look at various options and consider factors such as the APR (Annual Percentage Rate), monthly repayments, and the total amount to be repaid. This will help you find the most cost-effective loan.
Choose a deal
Select a deal and provider that offers the best combination of APR, term length, and monthly payments. Ensure that the joint loan is affordable based on your financial situation.
Fill out the application form
Provide your name, address, and bank details, along with a summary of your monthly income and expenses. Double-check all information for accuracy to avoid any issues during processing.
Loan calculator
This helps you get a more accurate finance estimate
Representative example
What is a joint loan?
A joint loan is a financial arrangement in which two or more people apply for a loan together and agree to share the responsibility of paying it back. If approved, the loan is issued in the names of all borrowers, who are collectively liable for managing and repaying the borrowed funds.
A joint loan lets multiple people combine their resources to possibly borrow more money or get better terms, such as lower interest rates.
However, all co-borrowers face risks like potential disagreements over financial decisions or uneven contributions to the monthly repayments. Before deciding on a joint loan, carefully consider who you’re partnering with and whether both of you are the right fit for this commitment.
Can I apply for a joint loan online?
You can apply for an unsecured joint loan online because these applications involve a more straightforward approval process.
On the other hand, secured joint loans, which require collateral like a home or car, tend to require speaking with an advisor over the phone. This allows for the necessary assessment and verification of the collateral to meet lender requirements and adjust loan terms accordingly.
How do joint loans work?
Once you’ve chosen the right deal, both joint loan applicants submit an application to the lender. Both applicants undergo credit checks to assess their ability to make the monthly loan repayments based on their income and credit history. The lender then decides whether to approve the loan application and sets the interest rate accordingly.
Once approved, the entire loan amount is deposited into the designated bank account, and you start making monthly repayments until the loan is completely paid off.
Importantly, a joint loan doesn’t split responsibility evenly. If one person can’t make the repayments, the other borrower is required to step in and cover the obligations. If payments are missed, it will harm both of your credit ratings.
Keep in mind that there might be an early repayment fee if you decide to settle the loan ahead of schedule, i.e., pay off the loan early. So, factor this in when applying.
Who is eligible to apply for a joint loan?
| To apply for a loan you need | Requirements |
|---|---|
| Your personal details, such as your name and birthdate | You need to be at least 18 years old—some lenders may require you to be older. |
| Your bank account information | Demonstrating a steady income is crucial as it shows you can handle monthly repayments. |
| Your current address and addresses from the last three years | An active bank account is required for the loan transactions. |
| Details about your job | Lenders will assess if you can comfortably afford the loan repayments without compromising your financial health. |
| You need to be a UK resident and have a permanent address |
All it takes to compare loans is a bit of information about you and your finances.
Compare loansWhat are the types of joint loans?
Just like borrowing individually, you can apply together for various types of loans:
- Secured loans — Secured against property or other assets you own.
- Unsecured loans — Also known as a joint personal loan, these don’t require you to pledge collateral.
- Current account — While not a traditional loan, a joint current account with an overdraft feature allows both holders to access and borrow money from the bank.
- Mortgages — Combine both applicants’ income incomes to borrow more money from the lender.
In the UK, joint credit cards aren’t available. The primary cardholder can issue an additional card to someone else, but they remain solely responsible for repaying any debts incurred on the account.
What are couple loans used for?
Simple joint personal loans for couples can be used to pay for household expenses like home improvements, mortgage payments, debt consolidation, and any everyday costs. You can also use them for weddings, travel, electronics, and more. However, it’s best only to consider them when the loan purpose is worth getting into debt for.
One of the main advantages is that applying together improves your chances of approval, especially if one person has a better credit score than the other. If you’re married or living together, sharing expenses is normal. So, these loans can provide a practical and efficient means of managing your combined finances.
Can my partner act as my guarantor?
Yes, you can request your partner or spouse to become your guarantor. To secure the necessary funds, they should ideally have a steady income and a strong credit history, especially if yours could be better.
Is it better to apply for a loan individually or jointly?
When deciding whether to apply individually or jointly, consider this:
- Individual loan — Simpler loan process, but interest rates may be higher based on your credit score.
- Joint loan — Could qualify for better rates and higher loan amounts, but both applicants share responsibility for repayment.
Ultimately, it all comes down to how strong your credit is, or if you need your partner's credit to boost your chances of getting better loan terms or a higher loan amount.
Can I get a joint loan with bad credit?
Even if you qualify for a loan, you likely won’t be eligible for the best available interest rates. You might also receive a smaller loan amount than someone with a solid credit score. This happens because lenders see you as a higher risk, so they’ll charge higher interest rates to compensate.
When you apply for a loan together, your credit histories are linked. If one person has a poor credit score, it will indirectly lower the other person’s credit history, which will make your joint loan application journey harder but not impossible.
What are the pros and cons of joint loans?
| Pros | Cons |
|---|---|
| Increased loan approval chances — Lenders are more likely to approve a larger personal loan if both applicants have stable incomes, compared to a person with poor credit applying alone. | Impact of poor credit — If your partner has poor credit, it could negatively affect your ability to secure loans in the future when applying alone. |
| Improved chances with good credit — Applying with a partner who has good credit improves your chances of approval, especially if your credit history could be stronger. | Higher interest rates — A lower credit score from one person may result in higher interest rates or rejection of the joint application. |
| Backup payment option — If one person can't pay temporarily (e.g., due to job loss), the other can step in. | Impact of missed payments — Missed payments lower the credit scores of everyone involved in the loan. |
| Full repayment responsibility — If the other person is unable to pay, the responsibility to repay the full loan amount falls on you, regardless of the reason. |
Why compare joint loans through Moneyrepublic?
- 1Identify the joint loans with the highest approval chances.
- 2Receive loan options tailored to your specific needs.
- 3Compare joint loans without impacting your credit score.
FAQ
Can couples get a joint loan?
Yes, it is possible for couples to seek joint loans by combining their incomes and credit histories. Joint loans are useful for shared expenses, major purchases, or home improvements. Both individuals can leverage their financial strengths and secure favourable borrowing terms. Under the right circumstances, they also allow them to qualify for larger loan amounts.
Are joint loans easier to get?
Joint loans are often easier to obtain because they consider the combined income and credit histories of both applicants. This approach increases the chances of meeting the lender’s requirements. However, all parties need to understand their shared responsibility for repaying the loan.
Is a joint loan your best option?
This depends on your financial situation. Joint loans offer advantages like better terms if both applicants have good credit and sufficient income. However, remember you share responsibility for repayment, so consider your decision carefully before committing.
Do you need a good credit score for a joint account?
Having a good credit score will certainly make your joint loan journey easier. But having a good credit score isn’t the only factor. Lenders also consider factors like income, existing debts, and the overall financial stability of both applicants when evaluating applications.
Can you get a loan in two people’s names?
Yes, you can get a loan in two people’s names. This is called a joint loan, where both parties are equally responsible for the repayments under the credit agreement.
Who can I get a joint loan with?
You can get a joint loan with a spouse, partner, friend, or family member. However, you can’t get a joint loan with casual acquaintances, colleagues, or people without a stable financial relationship with you.
Can we apply if we are both self-employed?
Yes, but you will need to provide additional loan documents, like tax returns and financial statements, to prove your income stability and ability to repay the loan.
Does my partner need to be employed?
No, your partner doesn’t have to be employed. However, their employment status will influence lenders' assessment of your application and loan terms.
Does my partner’s bad credit affect my credit score?
Your partner’s bad credit generally won’t have a direct credit score impact. However, lenders will review both credit histories to assess the loan’s risk when applying for a joint loan. If your partner has bad credit, it will affect the approval decision and interest rate.