JOINT LOAN: Definition And All You Need To Know

Joint loan application

Do you desire to expand an existing firm, gain access to healthcare facilities, mortgage, or get a degree? Joint loans may just be what you need. Honestly, joint loans are there to help you access loans to meet your financial goals. Learn all about a joint loan application including pieces of information you would need if you had bad credit and then a calculator to help make the calculations less stressful.

We all need finance to achieve our various dreams and projects. Oftentimes, borrowing funds from external sources is the only option available to us. What do you do when your credit score is low and you urgently need a loan to handle an emergency?  Or your present job cannot cover the required payback amount monthly? Consider taking a Joint loan. This loan may hold the key to the completion of your dream project. 

What is a Joint Loan

This is a credit facility accessible by two or more persons. This implies two or more persons can jointly apply for a loan.  While it provides money to meet your needs and complete your projects, the responsibility of paying back the debt lies on the parties. Technically, the cost is spread across the borrowers. This is because everyone is fully liable for the debt. Although, it comes with superb benefits such as access to a larger amount and a low-interest rate. The low-interest rate is because the rate is divided by the partners. There is a need to be particular about who your co-borrower is, as it has the tendency to affect your credit score in the future.

In the event that a credit partner defaults payment, you will be liable for the full loan amount. People consider joint loans for several reasons which include overdraft, mortgage, businesses and so on.

Anyone with bad credit records will find it difficult to access loans but joint loans avail them of such opportunities.

Joint Loan Application

Who can apply for Joint Loans ?

 As much as a Joint Loan helps to meet people’s financial needs, there are things to look out for when applying for one. Technically, anyone who desires to apply for a joint loan must be at least 18 years of age and above. In addition to this, you must meet the necessary requirements before you can access it. 

Basic Requirements For Joint Loan Application UK

  • Must be a resident of the UK
  • Must be at least 18 years old.
  • Not enrolled in a full-time programme of study
  • Ensure you have not been denied access to credit within one month.
  • Details about your earnings and employment.
  • Home address for the past number of years. Usually 3 years.

Things You Must Know Before Applying For a Joint Loan

There are certain things you should know before settling for a Joint Loan. 

#1. Credit Score

Kindly test the credit score of you and your partners. Be sure you both have a good credit record individually. Failure to do this might limit your chances of accessing loans in the future.

#2. Dual Liability

Even though parties agree to repay loans together, a partner will be held responsible when one party defaults payment. 

#3. Linked Credit Rating

Your credit files will be linked together once you have a joint loan. Definitely, this can affect your credit rating. Additionally, if for any reason, parties fail to make the due payment, you may incur additional charges. This charge is known as a breach of contract.

#4. APR Rate: 

Be sure to look out for the lender’s APR rate. Technically APR covers the interest rate (the cost of borrowing money expressed as a percentage of the total amount) with additions. The additional fees consist of other fees and charges that come with the loan. 

Benefits Of Joint Loans

  • High Credit Score rating: It increases the chances of your loan approval.
  • Joint loans grant one access to a higher loan amount.
  • Interest rate is minimal because it is shared between the borrowers.
  • Finance for goals: Joint Loans provide you the finance you need to pursue your dreams.
  •  Joint Loans provide an opportunity to share the debt responsibility of a loan. 

Types Of Joint Loans available in the UK

There are diverse reasons why people apply for loans together in the UK. It could be for a new house, wedding, healthcare, and the rest of it.

#1. Mortgage Joint Loan:

Joint loans offer mortgage loans to couples, siblings, or business partners. The mortgage loans available in the UK can be for a personal home or an office.

#2. Bank Overdrafts

  An Overdraft is another type of Joint Loan available in the UK. It is for Couples or partners with a joint account. They can request an overdraft with their bank. However, Overdraft usually demands the main cardholder. Anyone who holds the card will be liable for the entire loan in case of default.

#3. Secured Loan Joint Loan

This type of loan in the UK  is used to acquire assets.

#4. Personal Loans

Personal loans are unsecured loans that do not require collateral. However, they help you meet your needs.

Joint Loan With Bad Credit

Bad Credit poses a threat to individuals who want to apply for loans. This explains why it is extremely important to check out your credit scores before applying for loans. Also, applying for a joint loan with bad credit will limit your chances of approval when applying as an individual.

What To Do When You Need A Joint Loan With Bad Credit

No one wants to have a bad credit record. People who have one usually have issues regarding loan approval. However, a bad credit score doesn’t mean you cannot access loans. Neither does it mean no financial institution will loan money to you.  What do you do when you have a bad credit report and urgently need a Joint Loan? All you have to do is simply to speak with a Bad Credit Expert.

A Bad Credit Expert will help you analyze your credit score effectively. A Bad Credit Expert will equally get you ready for your joint loan application. They provide the right guidelines and advice. In addition to that, they give a more positive chance of accessing any credit facilities.

What kind Of Bad Credit can affect your Joint Loan Application?

Joint Loan application is influenced by the following credit concerns

  • Debt Management Plan(DMB)
  • Late Payment
  • Repossession
  • IVA
  • Bankruptcy

Joint Loan Application with a Bad Credit

Individuals with bad credit can still apply for joint loans but, ensure you know your chances of success before embarking on it. To begin your joint loan application, you need to do the following.

#1. Determine your Credit Score

Before Applying For a joint loan, determine your credit score. Actually, there are several sites that enable you to do this. Such as Experian, Equifax, Nerdwallet, and the likes of them. While some require you to sign up, others do not. Also, some have additional features such as giving you monthly update on your credit score.

#2. Analyze your relationship with your co – borrower

Do not just know your credit score, also assess your partner’s credit score. It is important to know your partner’s credit report too. This knowledge is expedient before applying for loans. You do this by analyzing their credit score. Also, be sure of their employment and income. Then finally assess your loan partner’s ability to pay back the loan.

#3. Decide on the financial institution to apply to for Joint Loan

There are diverse institutions that offer loans to individuals and joint borrowers. Be on the lookout for two important things. The APR and the interest rate. The Annual Percentage Rate (APR) of financial lending institutions differs. Choose the one that best suits you. 

#4. Visit A Bad Credit Expert if there is a need for one.

If you or your partner has a bad record, ensure you visit an expert for advice. They will provide guidelines on the perfect option that best suits you.

#5. Decide whether to apply online or offline

Most firms have provisions for both online and offline line applications. which do you prefer? Applying from the comfort of your home or going to the office to apply?

#6. Apply for your Joint  Loan with chosen financial lenders

Having assessed and decided on the firm, proceed with the application.

#7. Provide the necessary information, statistics and data

You will be asked to provide certain information, ensure they are up to date.

#8. Wait for approval

Once you apply, your application will be vetted and when approved, you will receive the loan.

Joint Loan Calculator

A joint loan calculator will help you to figure out what your monthly payments will be and how much interest you will have to pay. Therefore, it is important to use a joint loan calculator before applying for a loan as it will help you really know the APR of your loan. 

Technically, you analyze the amount you will be refunded monthly using the joint loan calculator.

Mostly, you can do this from the comfort of your home. All you need to do is to check the diverse options of loan calculators available online. 

Online Calculator For Joint Loan Credit Score

  1. Tesco loan calculator
  2. Moneyfacts Loan Calculator
  3. Barclay

Loan Calculator Made Simple

A loan calculator will require you to insert certain information before it does the calculation and includes the APR.

It requires the following:

  • The amount of loan you want to apply for.
  • The purpose of the loan. Some loan amounts are not available to certain circumstances. For instance, gives a high amount of loan to business on the condition it makes a minimum revenue of $100,000 annually.
  • Time frame: The length of time you would like the loan to spread across.

Typical Example Of A Joint Loan Calculator

Purpose of Loan – Home improvement

Amount – €10,000

Time – 60 months/5 years


Amount Payable€10,718.40
Monthly payment€178.64
Loan Amount€10,000
Length of time60 Months
Annual Rate Of Interest2.7647%
Joint Loan Calculator

The above calculations were done using Tesco Loan Calculator. Their APR is between 2.8% and 27% rate.

Also, loans between £7,500  to £25,000 have a payback period of 12 to 60 months. Rates vary depending on the loan amount and the borrower’s specific circumstances.  


You can buy your dream house, expand your business, go ahead with your wedding plans or any project that needs finance to accomplish. A joint loan is available to help make your dream a reality. So do not hesitate to apply for one. Also, be sure to have a good loan partner.

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