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Joint Loans
Fast. Free. No impact on credit score.This won’t affect your credit score
Joint personal loans, often called loans for couples, are perfect for partners looking to secure funds for life’s big moments, or making changes. But it’s not exclusive to couples—anyone can band together and benefit from the increased chance of securing a loan, whatever the purpose. From holiday adventures to business ventures, serious investments or a change of scenery. Secure funding today and see what types of loans might work best for you.
When you apply for a joint loan you’re doing it together, which means your finances will be linked with your partner or co-signer. Because of this, in the future, lenders may look at both your credit ratings when assessing you for further lending. If payments are missed, both of your credit scores can be affected.
Additionally, a joint loan isn’t a 50-50 split on reliability or repayments. Rather, both of you are equally reliable for paying off the total sum of the loan. This means that if the other party has a change in circumstance and cannot afford the repayment, both of you are still fully responsible and could suffer consequences for missed payments. This is known as joint and several liability.
If you think a joint application loan might be right for you then our loan calculator could provide insight into the type of loan you can apply for.
There are different types of joint personal loans available and depending on your personal circumstances, one may suit you better than the other. There are different types of joint personal loans available and depending on your personal circumstances, one may suit you better than the other.
One common way to borrow money is to secure it against existing assets, such as your home. Generally, this is ideal for homeowners looking for a larger loan, using your home as collateral.
An unsecured loan is the opposite of a secured loan; in that it doesn’t require any form of collateral. Unsecured loans are based on credit score to make decisions. However, you’re still responsible for paying it off in the event repayments aren’t met.
These joint consolidation loans are used to pay off existing debts in one large loan, which you’ll then pay off over time.
Not every situation requires the same kind of loan. There are two types of loans available, each with unique features to suit different circumstances.
A secured loan is where you borrow money secured against an asset –usually your home. If you don’t keep up with your repayments, you may lose the asset you used to secure the loan.
With an unsecured loan, sometimes known as a personal loan, the money you can borrow is determined by your credit score. It won’t be secured to any of your assets in the way a secured loan is.
While there’s many benefits to a joint loan, there’s also some important information to consider before you apply.
While not obvious at first, a joint loan can link you to someone else’s credit history. If theirs is poor, you could risk being turned down for credit in the future. It’s important to check both your ratings before applying.
More notably, if you were to break up with a partner, or anything were to happen to them, you’d still be liable to pay the full amount. In some circumstances there may be ways to have your name taken off the loan, but it may be safer not to assume you can.
It’s important to be realistic about your circumstances, needs, and what would happen in the event your joint financial positions change. Any issues with repayments could affect both of your credit scores, even if you’ve paid the bulk of it so far as you are both responsible for the full payment.
You can use joint loans for any purpose, but your lender might want to know what your intentions are. People tend to apply with a specific, large project in mind, such as:
Borrow to raise the funds for the materials you need to redecorate, or build an extension.
Car purchase loans can be cheaper than dealership finance plans, with rates available to suit your requirements.
Save on fees and hassle by clearing other existing debts, in favour of a single monthly repayment, with a debt consolidation loan.
Give your start-up a boost or grow your customer base. Business loans can help give you the edge over your competitors.
Before applying for a joint loan, it’s worth understanding what lenders look for. These factors affect how much you can borrow and whether your application is approved.
Lenders will assess your income and outgoings to ensure you can afford the monthly repayments. They may also ask about any existing debts.
Lenders will use your credit report to determine your suitability for a loan. For this reason, it’s important to make sure your report is accurate. Any errors in the information you provide such as your address or income could affect the chances of your application’s success.
You don’t need perfect credit, but lenders will check your history, including any missed payments or CCJs. A stronger credit profile could help you access more competitive deals.
It’s also helpful to have a clear loan purpose in mind, as some lenders have restrictions on what their secured loans can be used for.
Every lender has their own criteria, including your income, credit score, equity, and loan amount. For more details, visit our guide to loan eligibility.
Applying for a loan with Norton Finance is easy and hassle-free. Simply:
At Norton Finance, we can help find a loan that suits your needs as compare hundreds of loan options, not just one like a bank or building society.
You could borrow between £3,000 and £500,000, over 1 to 30 years, depending on what works best for you. Unsure of how much you can afford to borrow? Try our secured loan calculator.
You can get a decision in principle within 24 hours and if approved, the money is usually paid within 14 days.
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To apply for a joint loan there’s a few things you’ll need, such as:
Yes, joint loans for bad credit are available. However, it’s worth considering that lenders may consider you high risk, so you may be offered a smaller amount than someone with a good credit score.
Also, a joint application loan will link both borrowers’ credit files, so one person’s bad credit rating could affect the other borrower’s rating too.