Best joint personal loans of April 2024
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BLUEPRINT
Updated 5:40 p.m. UTC April 22, 2024
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Joint personal loans can help less-qualified borrowers access financing that might not otherwise be available to someone with their credit profile. Likewise, applying with a joint applicant (also called a co-borrower) could help you get approved for a more competitive interest rate, higher loan amount or longer repayment term.
The best joint personal loans of 2024 offer competitive annual percentage rates (APRs), reasonably high loan amounts and a variety of repayment terms. Several also provide rate discounts as well as few to no fees.
Best personal loans for joint applicants
- SoFi: Best for discounts.
- LightStream: Best for fast funding.
- Prosper: Best for competitive rates.
- U.S. Bank: Best for existing customers.
- LendingClub: Best for bad credit.
Why trust our personal loan experts
Our team of experts evaluated hundreds of personal loan products and analyzed thousands of data points to help you find the best fit for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 10 personal loan lenders reviewed.
- 160 data points analyzed.
- 6-stage fact-checking process.
Compare the best joint personal loans
| NTEREST RATES | LOAN AMOUNTS | REPAYMENT TERMS (YEARS) | MIN. CREDIT SCORE | |
|---|---|---|---|---|
SoFi
| 8.99% to 29.49%
| $5,000 to $100,000
| 2 to 7
| 680 |
LightStream
| 6.99% to 25.99%
| $5,000 to $100,000
| 2 to 7 (up to 12 for some loan types)
| Does not disclose
|
Prosper
| 8.99% to 35.99%
| $2,000 to $50,000
| 2 to 5
| 640 |
U.S. Bank
| 8.74% to 24.99%
| $1,000 to $50,000 ($25,000 maximum for non-U.S. Bank customers)
| 1 to 7 (5-year maximum for non-U.S. Bank customers)
| 660 |
LendingClub
| 8.98% to 35.99%
| $1,000 to $40,000
| 3 to 5
| No minimum
|
All interest rates are current and include discounts as applicable as of April 22, 2024.
Methodology
Our expert writers and editors have reviewed and researched multiple lenders to help you find the best joint personal loan. Out of all the lenders considered, the five that made our list excelled in areas across the following categories (with weightings): loan details (20%), loan cost (35%), eligibility and accessibility (20%), customer service (15%) and ease of application (10%).
Within each major category, we considered several characteristics, including loan amounts and terms, APR ranges, late payment fees, discounts, minimum credit score requirements and funding speed. We also evaluated each provider’s customer support options and customer reviews.
Why some lenders didn’t make the cut
Of the personal loan lenders that we reviewed, only a fraction made the cut. The reasons for this varied by lender, with some receiving lower ratings due to having stricter credit score requirements or higher APRs, while others had limited customer service options or a higher amount of fees.
What is a joint personal loan?
A joint personal loan is a type of loan where responsibility for repayment is shared by two or more people (such as a couple, family members or close friends). When evaluating a joint application, the lender will consider each borrower’s credit history, income and overall financial situation. This can make it easier to get approved compared to applying on your own. You might also qualify for a larger loan amount or lower interest rate with a joint applicant.
That said, taking out a joint loan can strain your relationship with your co-borrower if you fail to manage your payments. Carefully consider the responsibility that comes with a joint loan to ensure you have open communication and trust with all parties involved.
Co-borrower vs. co-signer
Both a co-borrower and a co-signer can increase your approval odds — however, they share different levels of responsibility for a loan. A co-borrower (or joint applicant) is equally accountable for repayment as soon as the loan agreement is signed. They also have joint ownership of the loan funds.
A co-signer, on the other hand, is someone who only will be held liable for the loan if the primary borrower defaults on payments. They also don’t have ownership over any of the loan proceeds.
Whether a co-borrower or co-signer is a better option will depend on your situation. For example, if you need additional income to qualify and plan to share the loan funds, applying with a joint applicant could be a good idea. But if you have low or thin credit credit, applying with a co-signer who doesn’t need access to the loan proceeds might be a better option.
How to apply for a joint personal loan
If you’re ready to apply for a joint personal loan, follow these steps:
- Check each borrower’s credit. When you apply for a joint loan, the lender will review the credit of each co-borrower — so it’s a good idea to check your credit beforehand to see where you both stand. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, report them to the appropriate credit bureau to potentially boost your credit score.
- Compare lenders. Be sure to compare your options with as many lenders as possible to find the right loan for your needs. Keep in mind that not all lenders permit joint applicants, so you’ll also need to double-check before applying. As you shop around, consider interest rates as well as repayment terms and eligibility requirements. Many lenders let you prequalify with only a soft credit check that won’t impact your credit score.
- Pick a lender and submit a joint application. After you’ve done your research, pick the lender you like best. Both you and your co-borrower will then need to complete a joint application and submit any required documentation, such as tax returns or pay stubs. This can often be done online, though some traditional banks and credit unions require you to visit a branch location.
- Get your loan funds. If you’re approved, the lender will have you and your co-borrower sign for the loan so the funds can be released. It generally takes about a week to get personal loan funds, depending on the lender. Online lenders typically have the fastest funding speeds, with several offering same- or next-day funding after approval.
What to consider when choosing a joint personal loan
Applying with a joint applicant can make it easier to get approved — and might also qualify you for a larger loan amount or better rate. However, it’s important for you and your co-borrower to understand the risks involved before entering into a loan agreement.
If you’re considering a joint personal loan, here are some pros and cons to keep in mind:
Pros of joint personal loans
- Possibly lower interest rate. Having a joint applicant might qualify you for a lower interest rate than you’d get on your own. This can save you money on interest charges over time.
- Potentially higher loan amount. With a joint loan, the lender will consider both your and your co-borrower’s income. Based on this combined income, you might be eligible for a higher loan amount than you’d qualify for alone.
- Shared ownership and benefits. In addition to sharing responsibility for repayment, you and your co-borrower will also have equal access to the loan proceeds. Making loan payments on time can also help improve the credit of both you and your co-borrower over time.
Cons of joint personal loans
- Equal liability. Co-borrowers are equally liable for the entire loan amount if one fails to repay. Any missed payments or defaulting on the loan will affect both of your credit scores and could make it hard to access new credit in the future.
- Hard to get out of. Getting out of a joint loan before paying it off can be hard and isn’t always an option. Exiting from this type of financial agreement usually requires either paying off the entire loan amount outright or consolidating the debt with a new loan, which can be expensive.
- Can strain your relationship. If either you or your co-borrower fail to manage responsibility for the loan, it could strain your relationship. Ultimately, be sure both you and your co-borrower understand the risks involved and are comfortable moving forward with a joint loan before you apply.
Frequently asked questions (FAQs)
The decision of whether to get an individual or joint loan largely depends on your financial situation and goals. An individual loan is a great option if you’re looking to build credit on your own since only your credit score will be taken into consideration for approval.
On the other hand, a joint loan can benefit borrowers who won’t qualify on their own. Applying with a co-borrower could also help you get approved for a more competitive rate or higher loan amount than you’d get as an individual applicant.
Keep in mind that unlike a co-signer — who is liable for the loan if the primary borrower fails to make payments — a joint applicant will share ownership of the loan and be equally responsible for its payments from the start.
To get a joint personal loan, you’ll first need to find a lender that allows co-borrowers. Be sure to shop around and compare your options from as many of these lenders as possible to find the right loan for your needs.
After you’ve found a lender, you’ll then need to ensure that both you and the other applicant meet that lender’s eligibility requirements. This generally includes having good credit, sufficient income and a positive repayment history. If you decide to apply, you’ll have to fill out a full application and submit any required documentation, such as tax returns or bank statements.
If you’re approved, remember that you and your co-borrower will be equally responsible for repaying the loan according to its terms and conditions. So make sure that you’re comfortable with all aspects of the loan before agreeing to it.
If you apply for a personal loan with a joint applicant, the lender will perform a hard credit check as part of the approval process. This could cause a slight drop in both your and your co-applicant’s credit score. A hard inquiry will typically remain on your credit report for two years but will only impact your score for one year.
Keep in mind that a joint personal loan can also positively impact your credit score, such as if you consistently make on-time payments or are able to diversify your credit mix. However, missing payments or defaulting on the loan can lead to negative marks and a dip in the credit scores of both you and your co-applicant.
When you apply for a joint personal loan, the lender will consider the credit scores of both co-borrowers. The exact credit score you’ll need to get approved will depend on the lender. In most cases, you’ll both need good credit to qualify — a good credit score is usually considered to be a FICO score of 670 or higher.
If one co-borrower has excellent credit (generally 800 or higher), the lender might approve the application even if the other borrower has a score as low as 580. However, this could result in a higher interest rate.
There are a few types of lenders that offer joint personal loans, including online lenders as well as traditional banks and credit unions. Keep in mind that not all lenders permit joint applications, so be sure to double-check before applying.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
