Best Joint Personal Loans of April 2024

If you and a partner, friend, or spouse are looking for a personal loan that you’ll both use and repay, a joint personal loan may be a good choice. This type of loan allows two borrowers to get the funds they need while assuming equal responsibility for repayment. 

Compare joint personal loan rates of April 2024

Best joint personal loans

When comparing loans, consider the annual percentage rate (APR). The APR represents the total cost to borrow money, which includes the interest rate and any upfront fees, like an origination fee. Prequalify with multiple lenders to get an idea of rates you might qualify for before applying. 

Prequalification is not an offer of credit and won't hurt your credit score (though your credit scores may be dinged when you formally apply for a loan.) Also know that the rate and terms you qualify for will depend on your credit and financial profile, and the co-borrower's.

SoFi: Best overall

Upgrade: Best for fair credit

LightStream: Best home improvement loans and low rates

LendingClub: Best online experience

Methodology

Credible evaluated the best joint personal loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible’s team of experts gathered information from each lender’s website, customer service department, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication.

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.

What is a joint personal loan?

Both joint personal loans and traditional personal loans are lump-sum loans, meaning you receive the amount you borrowed upfront and repay it according to a set repayment plan. The payment amounts and interest rates on personal loans are usually fixed, which means they won’t change over the life of the loan. Personal loan amounts can be as low as $600, but they can also be much higher, with many lenders offering personal loans with maximum amounts of $100,000, and some offering as high as $200,000.

A joint personal loan differs from a traditional personal loan in that it has two borrowers, both taking equal responsibility for the loan and both spending the disbursed money. A joint loan may allow you to qualify for better loan terms than you would alone if both borrowers have good credit scores and debt-to-income ratios. 

Joint personal loans can be a good way to share responsibility for a major financial purchase both parties will use, rather than one person taking out a loan on their own. Applying jointly may also allow you to qualify for a higher loan amount, since you’ll be repaying it with two incomes.

Compare Rates Now

How to compare joint personal loans

When you shop for joint personal loans, here are some of the most important criteria to consider:

• Co-borrower option: Not every personal loan provider offers a co-borrower option. Look for banks, credit unions, and online lenders that offer joint personal loans.
• Interest rate: One of the most important factors in taking out a loan, your interest rate is a major determinant of how much your loan will cost you over its lifetime. For a loan with otherwise identical terms, a 20% interest rate will cost you roughly twice as much as a 10% interest rate, and for a large loan with a long repayment term, that can add up to thousands of dollars.
• Fees: Many lenders charge fees for personal loans, including origination fees, processing fees, and late fees. Origination fees are usually a percentage of your total loan amount (1% to 10% is a common range) that is taken from your loan before you receive the money. For example, if you borrow $1,000 with a 5% disbursement fee, the lender will automatically deduct the $50 origination fee and disburse the remaining $950 to you. 
• Repayment term: This is how long you will be making your monthly payments on the loan, usually anywhere from 1 year to 7 years (or more, depending on the lender and loan purpose). Longer terms generally mean lower monthly payments, but a higher overall cost to the loan over time. It’s usually best to find the shortest term you can where you still know you can comfortably afford the monthly payment.
• Loan amount: If you’re looking for a particularly small or large personal loan, you’ll want to find a lender who can accommodate that. Prequalify with multiple lenders to get a sense of how much of a personal loan you can get. If you have a low credit score, a small income, or a high debt-to-income ratio, you may struggle to find a lender that will lend you a large (or any) amount. 
• Time to fund: If you need money fast, look up the lender’s average funding time, which is how long it will take from when you apply for the loan to when the money arrives in your bank account. Some lenders take longer than others, but remember, things like delays in providing documentation, what time of day you apply, and your bank’s policies can all impact when you receive your money. Depending on the lender, you could receive your funds as soon as the same or next business day. 

Co-borrower vs. cosigner

Depending on the lender, a co-borrower may not be treated much differently from a cosigner. In both cases, the co-borrower or cosigner will agree to take on responsibility for the loan, and their credit score and income will help determine the outcome of your loan application.

• A co-borrower applies for the loans with another borrower and agrees to repay the loan on the same terms as the other borrower. Both borrowers have equal access to the funds. 
• A cosigner, on the other hand, is more likely to step in to help you qualify for a loan, and will not be expected to use the funds from the loan or, usually, to repay it, unless the main borrower fails to do so.

If you and a partner are hoping to borrow money for a joint expense or project that you will both equally be using the funds for and repaying, a co-borrower is the correct term for the relationship.

If you are having a hard time qualifying for a loan on your own, you may want to look for personal loans with a cosigner. A cosigner with a good credit score and healthy income to help you qualify. In this scenario, you’ll be expected to repay the loan on your own, and the cosigner is hoping to help you get the loan without having to step in and help you repay it, since they won’t be benefiting from the money.

Compare Rates Now

How to apply for a joint personal loan

The actual process to apply will vary from lender to lender, but here are the most important steps you’ll take along the way:

• Discuss it with your co-borrower: When entering into a financial partnership with someone, it’s best to be very clear on both of your expectations. How much are you borrowing? Will you both be splitting the cost of each monthly payment? Do you both agree on exactly how you’ll use the money? In some situations this may seem very straightforward — like a married couple with integrated finances borrowing for a well-researched home improvement project — but in others, things may require more discussion. Get on the same page before making any other decisions. 
• Pull both of your credit scores: Pull a credit report for each of the borrowers and review. If one or both of your credit scores is low, it may be worthwhile to take the time to boost it prior to applying so you can qualify for the best interest rates available. 
• Prequalify for multiple loans: Many lenders will allow you to prequalify for a loan. This means entering your basic information, estimated income, and other details. You will then be shown an estimation of the rates and terms you may be eligible for. Prequalification is not an offer of credit, and your final rate could be higher.
• Compare terms: Once you have quotes from multiple lenders, compare APRs, loan amounts, repayment terms, and other factors. You’re looking for the loan with the lowest cost of borrowing, with a monthly payment you are confident you will be able to afford.
• Finalize the loan: Once you’ve identified the best option, finish the paperwork and apply. At this point the lender will conduct a hard credit check, which could bring your score down by a few points temporarily. If approved, you’ll need to go back to the lender and submit documentation and sign the final contract. 
• Prepare for repayment: Once you receive your funds, make sure you’re prepared to repay your loan in full and on time. Set up automatic payments, or create a calendar reminder. 

Learn More: APR vs. Interest Rate on a Personal Loan

FAQ

How do joint personal loans impact the credit scores of both applicants?

How a loan affects your credit score can depend on a variety of factors in your personal financial history. If you only have credit card debt, taking out installment debt might boost your credit score by diversifying your credit mix. 

If you’re already carrying a lot of debt, credit scoring models may think you’re overloaded and lower your credit score. Regardless, you’re likely to see a temporary ding to your score when you take out a new loan because of the hard credit inquiry from the lender.

Can I get a joint loan with bad credit?

Similarly to using a cosigner, a co-borrower with a great credit score may help you qualify for a joint personal loan. However, if both applicants have bad credit, it may be difficult to qualify for joint personal loans with attractive terms.

What are some alternatives to a joint loan?

Alternatives to a joint personal loan include a home equity loan or line of credit, a credit card, or a personal loan for a single borrower.

Check Out: Best Credit Cards