Joint Personal Loans: How They Work, Risks to Know, and When They Make Sense

A joint personal loan lets two people apply and borrow together, which can unlock better rates and higher amounts. Both borrowers are equally responsible for the full debt, regardless of any private agreement between them. As of September 2025, 38% of U.S. consumers had a personal loan on their credit reports, according to Experian data, or nearly 4 in 10 people.

Qualifying for a personal loan with great rates isn't easy. Experian says you'll typically need scores in the 700s to qualify for favorable terms, which can leave fair-credit applicants with fewer options. Repaying the average balance of $19,333 (Experian data as of September 2025) on one income can be a stretch, especially at a high rate.

A joint personal loan could be the answer if you can't qualify or manage repayments on your own. These loans can be especially appealing to couples funding something they're both invested in, like a wedding or holiday. Start by comparing personal loan offers to see what rates and terms might be available to you.

There are real downsides, though: you're both on the hook for the full debt, and money issues can be a minefield for any relationship.

This guide explains how joint personal loans work, the risks involved, and how to decide if one is right for you.

A joint personal loan is a loan two people apply for together, and both are equally responsible for repaying the full amount. It's also called a co-applicant loan, and you can take one out with a partner, spouse, family member or friend.

According to Experian, both borrowers' names appear on the loan documents, both can use the money and both are responsible for repaying it. When you apply jointly, you're responsible for the full amount, even if your co-borrower walks away.

Think of it like signing a lease with a roommate. Both names are on the contract, so the landlord can come to either of you for the full rent.

However, there's a difference between a joint loan and a co-signed loan. Private student loans often use co-signers, like parents, who agree to pay if their child can't, but with no access to the funds themselves. A co-borrower, by contrast, shares both the responsibility and the money.

How Is a Joint Personal Loan Different From a Co-Signed Loan?

The main difference is access to the money: a co-borrower shares the funds and the debt, while a co-signer gets no funds. The FTC's cosigning FAQs also note that cosigning doesn't give you title, ownership or other rights to what the loan pays for.

Here's how co-borrower vs. co-signer roles compare:

If you're weighing this choice for paying down balances, read our guide to using a co-signer on a debt consolidation loan.

The lender reviews both applicants, then issues one loan with one monthly payment that you both owe. When you apply jointly, the lender examines each borrower's credit score, income and debt-to-income ratio. If your co-borrower has a higher credit score, it can help offset a weaker one.

Not sure where you stand? Check what counts as a good credit score.

A joint personal loan works the same as a single-signer one. You'll usually have a fixed monthly payment, and terms typically range from one to seven years, depending on the lender.

If you have a joint loan, you are both equally responsible for the amount borrowed. The lender won't split it in half. You'll have to work out payment arrangements outside the lender, and a written agreement can be useful, even though the lender isn't bound by it.

What Do Lenders Look at When You Apply Together?

Lenders look at each applicant's credit history, income and debt-to-income ratio, or DTI. Experian defines DTI as the total of your monthly debt payments divided by your gross monthly income.

In plain terms, DTI shows how much of your paycheck already goes to debt. Each lender sets its own limit, so learn how debt-to-income ratio works before you apply.

Whose Credit Score Do Lenders Use on a Joint Application?

It depends on the lender. Experian notes that some lenders consider both co-applicants' scores, while others use only the higher or the lower one.

Some lenders also charge higher fees and rates if one borrower's score is much lower, according to Experian. Ask each lender how it handles joint applications before you apply.

Can You Use Your Spouse's Income Without Applying Jointly?

Sometimes, but the lender may ask your spouse to sign. Under Regulation B's rules on signatures, a lender can't require your spouse's signature if you qualify on your own.

If you don't qualify alone, the lender may require a co-signer but can't insist that it's your spouse. If you rely on someone else's income, the lender may require that person's signature. Rules can differ in community-property states, so ask how the lender treats spousal income.

Applying together can raise your approval odds and may unlock a lower rate or larger amount when one borrower has stronger credit or income. The appeal is straightforward when one borrower has noticeably stronger credit:

• Higher approval odds: A joint loan comes with two incomes and two credit profiles. If one looks stronger, it may meet the lender's requirements.

• Access to larger loan amounts: Combined income can raise how much you can responsibly borrow. See how much of a personal loan you can get.

• Potentially lower interest rates: A co-borrower with strong credit can help you qualify for a lower APR, which lowers your total borrowing cost.

• Ability to build credit (if managed well): On-time payments can help build credit, including for a borrower who couldn't qualify alone.

APR is the yearly cost of borrowing, including interest and fees. The Federal Reserve's average for 24-month personal loans at commercial banks was 11.90% in August 2026.

That's a bank average, not the rate a fair-credit borrower will be offered. Rates may keep shifting, too: the Fed raised its benchmark rate range to 3.75%–4.00% on Sept. 16, 2026.

For someone with fair credit, a joint application may mean lower interest rates, but these loans do carry risks.

The biggest risks are shared liability, credit damage and strain on your relationship. Taking out a loan with a partner doesn't change the math if you're already struggling with bills or out of other options.

A loan without a clear repayment plan may only postpone a money problem rather than solve it. You and your partner are both on the line for the monthly payments, no matter how you agree to split them.

Other risks include:

• Shared liability: If one person doesn't pay, the other is on the line for the full amount.

• Credit damage: If either of you misses a payment, both credit reports take a hit, regardless of who was supposed to pay.

• Relationship strain: Sharing a loan can take a toll on your relationship, especially if one borrower starts to struggle to pay their share.

• Higher DTI for both of you: The full loan counts toward each borrower's debt load, which Experian notes can make other borrowing harder.

• Difficulty removing a co-borrower later: Lenders typically won't simply drop a name. You may need to refinance, which means qualifying on your own.

Missed payments carry weight because payment history makes up 35% of a FICO Score, the largest single factor, according to myFICO. When you're in a joint-loan situation, the risks can compound, and they can get worse when relationships change.

Nothing changes for the lender: both names stay on the loan until it's paid off, refinanced or the lender releases one of you. The lender doesn't care about your relationship. A divorce, breakup, death or job loss won't change your loan contract.

Life changes like these are stressful, and losing a co-borrower is hard enough without debt questions on top. Here's what each situation means for your loan:

• Divorce or separation: A divorce agreement may assign the debt to one spouse, but it generally doesn't remove the other spouse's responsibility to the lender.

• Informal agreements: A private repayment agreement is between co-borrowers; the lender isn't a party. Anyone who signed the loan contract stays responsible until it's paid off or refinanced.

• Death of a co-borrower: You can remain responsible for the remaining balance, though state law varies, according to CFPB guidance on debt after death.

• If things go south: Your options are refinancing a personal loan into one name, if that person qualifies, or paying it off early in full.

Having a plan before things go wrong is critical. Walk through the worst-case scenario together and decide in advance what you'd do. Could each of you afford the loan alone, and would paying it harm you financially?

Sit with those questions honestly. If you can't afford the loan on your own, it may be too risky.

You can apply for joint personal loans at your local bank or credit union, or use an online lender. Not all financial institutions offer co-borrowing, but there are plenty of options to try. Ask up front and confirm the lender offers co-borrowing, not just co-signing.

When you're looking for a personal loan with a partner, approach it as you would alone. Compare fees, repayment terms, prepayment penalties and interest rates before you commit to a lender. A prepayment penalty is a fee some lenders charge if you pay off your loan early.

Many lenders let you prequalify with a soft credit check, which won't affect your score. Experian's joint personal loan guide, linked above, notes that applying jointly results in a hard inquiry into each applicant's credit. That can cause a small but temporary dip in credit scores, per the same guide.

Which Lenders Accept Co-Borrowers?

Policies vary, so some lenders accept co-borrowers and others don't. BestMoney's lender reviews note the following co-borrower policies, listed alphabetically rather than ranked.

Co-Borrower Options in BestMoney's Lender Reviews

Lender policies change, so confirm co-borrower rules with the lender before you apply.

You apply much like you would alone, except both applicants share personal and financial details and both sign. Here's how a joint personal loan application typically works:

1. Pick a co-borrower you trust, and both check your credit reports and scores.

2. Decide how much you need and what monthly payment you can both afford.

3. Prequalify with several lenders that accept co-applicants to preview your rates.

4. Compare APRs, fees, terms and prepayment penalties across offers.

5. Gather documents for both applicants, then submit your joint application.

6. Review the final terms together before you both sign.

For a deeper walkthrough, see how to apply for a personal loan and the documents you need to apply for a personal loan.

Many mistakes come from not agreeing on repayment before you sign. When you're taking out a joint personal loan, avoid these common mistakes:

• Skipping the repayment conversation: Don't assume you and your co-borrower agree on who is paying the loan.

• Assuming responsibility is "split": If you borrow $50,000 together, you don't each owe $25,000. You both owe the full $50,000.

• Ignoring worst-case scenarios: A job loss or a breakup can derail your repayment plan, and these scenarios are important to discuss.

• Not using a written agreement: Without a contract, legal or not, disputes are harder to settle. A contract can help protect both parties.

A joint personal loan can make sense when you and your partner are funding a joint project, like a home renovation or wedding. It helps to have a clear repayment plan using co-mingled funds from one household.

A joint loan can also be useful if one partner has significantly stronger credit. Ideally, the other can still cover the full amount if something goes wrong.

Ask yourselves these questions first:

• Could either of you qualify on your own, and how would that offer compare?

• Could each of you cover the full payment if the other stopped paying?

• Are you both invested in what the money pays for?

Couples paying down existing balances together can also look at joint debt consolidation loans for couples.

Your main alternatives are a co-signer, a secured personal loan, home equity borrowing, or waiting while you build credit. If you don't have a co-borrower or don't want one, these routes can still lead to a loan.

You can ask a trusted friend or relative to co-sign, but they could be on the hook for the full amount if you default. Don't put a family member at that risk unless you're confident you can repay.

A secured personal loan uses an asset you own as collateral. That may make approval easier, but you could lose the asset if you can't repay.

Homeowners with enough equity could consider a HELOC or home equity loan. Your home secures these, so the stakes are higher if you can't repay. Weigh the tradeoffs in our HELOC vs. personal loan for home improvement guide.

You can also give yourself more time. By improving your credit and saving more, you can be in a better position to borrow later.

Three steps can meaningfully reduce the risk of a joint loan going sideways:

• Run the worst-case math together before you sign: Either of you should be able to cover the full payment alone if needed.

• Put the agreement in writing: Spell out who's responsible for missed payments, the sale of any shared asset and how to settle disputes.

• Consider talking to a financial planner or attorney: They can help you plan for worst-case scenarios, such as the death of your co-borrower.

Taking out a joint loan with a partner or spouse can make sense if you're both invested in how the money will be spent. But it carries serious risks.

Both of you need trust, strong communication and a solid understanding of how a joint loan works. You also need a plan for what you'll do if something goes wrong in your relationship. It takes careful planning beyond your loan terms to keep your relationship and your finances in good standing.

This guide is for anyone thinking about borrowing with a partner, relative or friend. Here's how it applies to common situations:

• If one of you has fair credit and the other strong credit: A joint application may help you qualify for more favorable terms.

• If you're married or partnered and funding a shared goal: A joint loan can fit a wedding or renovation if you agree on repayment.

• If you're a parent helping an adult child build credit: Compare co-borrowing with co-signing, since only co-borrowers share the money.

• If you'd struggle to cover the full payment alone: Look at the alternatives above before you apply together.

Is a joint personal loan the same as a co-signed loan?

No. Co-borrowers share both the money and the debt, while a co-signer backs the debt without getting the funds.

Will applying together help us get approved or get a lower rate?

It can if the second applicant has stronger credit or income. Approval and rates still depend on each lender's standards, so neither is guaranteed.

Does a joint loan affect both borrowers' credit scores?

Yes. The loan appears on both credit reports, so on-time and missed payments affect both of you.

Whose credit score is used on a joint personal loan?

It varies by lender. Some consider both scores, while others use only the higher or the lower one.

Can you remove someone from a joint personal loan?

Usually only by refinancing the loan in one person's name or getting the lender to release that borrower.

This guide relies on secondary sources, not proprietary BestMoney research or surveys. We drew on Experian credit-education and research pages, CFPB and FTC consumer guidance, Federal Reserve data via FRED, and myFICO.

We also used BestMoney's own lender reviews for co-borrower policies and reviewed top-ranking joint-loan pages to check which topics readers expect covered. BestMoney's editorial team checked all sources in October 2026.

• Experian – What Credit Score Is Needed for a Personal Loan? – Sept. 28, 2026

• Experian – Average Personal Loan Balance Grows 1.7% in 2025 – March 30, 2026

• Experian – Personal Loan Usage Statistics – Feb. 27, 2026

• Experian – How to Get a Joint Personal Loan – Sept. 24, 2026

• Experian – What Is a Personal Loan? – June 25, 2026

• Experian – How Does a Personal Loan Impact Your Credit? – accessed October 2026

• Experian – What Is a Hard Inquiry? – Nov. 8, 2024

• Federal Trade Commission – Cosigning a Loan FAQs – Dec. 9, 2025

• Experian – What Is a Debt-to-Income Ratio? – Sept. 22, 2026

• Consumer Financial Protection Bureau (CFPB) – Regulation B, Section 1002.7: Rules Concerning Extensions of Credit – current regulation, accessed October 2026

• CBS News – What Happens If Your Ex Stops Paying a Joint Debt? – July 29, 2026

• CFPB – Does a Person's Debt Go Away When They Die? – Sept. 22, 2026

• Federal Reserve Bank of St. Louis (FRED) – Finance Rate on Personal Loans at Commercial Banks, 24 Month Loan – updated Oct. 7, 2026

• Federal Reserve – Minutes of the Federal Open Market Committee, Sept. 15–16, 2026 – Oct. 7, 2026

• myFICO – What's in My FICO Scores? – accessed October 2026

• CBS News – Does Getting Married Combine Your Debt? – Aug. 13, 2026

• BestMoney – Personal loan lender reviews for three lenders – 2026

Your next step is to talk through the worst case, check both credit profiles and compare offers from lenders that accept co-borrowers.

1. Talk through the worst case together and confirm each of you could cover the full payment.

2. Check both credit reports and review the personal loan requirements lenders typically look for.

3. Prequalify with lenders that accept co-borrowers to preview rates with a soft credit check.

4. Compare APRs, fees and terms side by side before either of you signs.