If you live with a partner or family member and both of you need money but don't have enough, you might want to apply for a joint loan. With a joint loan, you and a partner or family member can each get more money than you could on your own. At the same time, you and your partner or family member can share the cost of paying back the loan. Here is some useful information that might help you learn more about joint loans and how to apply for them.
Who can I borrow money with?
Joint loans aren't available for all kinds of relationships; in fact, they are only available for partnerships. Most people who want a joint loan are married couples, but unmarried couples are not eligible. Some companies will let you apply for a loan while you are engaged, but you won't get the money until after you get married. A parent and child can also fill out an application together. Even though some loan companies will accept two brothers, most won't accept any other siblings or family members.
Making more cash
The main reason to apply for a loan with someone else is to get more money than you might be able to get on your own. People who are married or who live with their parents and children can use both of their incomes to get a bigger loan. If your salary is about the same as someone else's, you can often borrow twice as much.
Different Paychecks
If you want a joint loan, you don't both have to make a lot of money. Even if one of you doesn't have a salary but has money from a part-time job or other work, this can help you both make more money. As long as you both have jobs and can help pay back the loan, it will be in your best interest to apply together.
Both are to blame
Even though you both stand to gain from the loan, it is important to remember that you are both responsible for paying it back. Even if you are married and then break up, both of you will still have to pay back the loan. There is more risk of default than with a normal loan, because if one of you stops making payments, the other might not be able to keep up, and then both of you will be in default. This means that your credit history could be hurt, even if you didn't cause the debt problem. Make sure that you can pay back the loan, even if you don't live with the other applicant anymore.
Who should take out loans together?
Even though most married people can apply for a joint loan, not everyone should get one. If one of you has bad credit or makes a lot less money than the other, you might not want to get a joint loan. Also, make sure that any loan you take out together will help you both. Even if you can get more money, that doesn't mean it will help you both. Always use joint loans to pay for something that will help you both, so that you can get the most out of your loan.
