Joint Loans For Bad Credit – Loans for Couples

Joint loans involve two borrowers assuming the responsibility of repaying a loan. Two applicants can be better than one, even when both of you have poor credit scores.

You can consider taking out a loan with someone else like your spouse or partner if you’ve found it challenging to get approved independently.

Lenders will consider your incomes, assets, and affordability, making you less risky together than you would be alone.

You’ll not only qualify for more significant amounts, but you’ll also get better deals and terms. Read on to find out more about joint loans for bad credit in the UK.

How Joint Loans For Bad Credit Work

Joint loans for bad credit involve incorporating a co-borrower in a loan application if one or both of you has a bad credit history.

Joint loans are different from guarantor loans, where a co-signer takes on shared responsibility but is only liable when you default and doesn’t use the loan’s proceeds.

In joint loans, you’re both equally responsible and liable for the debt obligations from the moment you both sign the loan agreement. Lenders combine your incomes, assets and expenses in the affordability assessment, which improves your chances of getting approved even with bad credit.

Also, if only one of you has a poor score and the other has a better credit rating, you can get more loan choices and better deals. The co-applicant may have a steady and long employment record or a more stable income, and such factors can help despite their bad credit score.

It’s vital to remember that you’re not responsible for only half or a share of the loan. You both agree to pay off the whole amount in joint loans for bad credit even if the co-borrower can’t or won’t pay.

Features Of Joint Loans For Bad Credit

Higher Loan Limits

Joint loans for bad credit will you qualify for higher loan limits than you’d get by yourself with a poor credit score. This is because there’s more income and collateral to be considered by lenders from you and your co-borrower. When you both join your forces, you’ll be regarded as less risky, enabling lenders to advance higher loan amounts.

Lower Interest Rates

Applying for a joint loan makes it easier to get favourable interest rates from lenders even with bad credit scores. A co-borrower increases your chances of getting lower interest rates because you both share responsibility for the loan. Some lenders also favour low credit scores for co-borrowers than single borrowers, making them open for better terms and rates.

Types Of Joint Loans For Bad Credit

Most lenders specialize in offering two types of joint loans for bad credit. These include:

Secured Joint Loans For Bad Credit

Secured joint loans for bad credit work like traditional secured loans. A single or jointly owned asset is eligible as the loan collateral, such as a joint mortgage. You can borrow a particular amount against the property, and you’ll both be jointly and severally liable for monthly payments over a fixed time frame.

In the worst-case scenario, if you both fail to make repayments, lenders may repossess the asset to claim back the funds. With security, you reduce the risk for the lender and increase your chances for more significant loan amounts and more favourable terms.

Unsecured Joint Loans For Bad Credit

With unsecured joint loans for bad credit, lenders don’t require any asset as collateral for the loan. Even with bad credit scores, you may still get approved depending on your affordability and that of your co-borrower. Lenders will look at both your incomes and monthly expenses when considering your application.

Because the risk is generally higher for the lender, these loans may have higher interest rates than their secured counterparts. The good news is that they have fast payouts, which can come in handy in an emergency.

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Uses Of Joint Loans For Bad Credit

Joint loans can help you fulfil a wide range of financial needs, especially if you have bad credit. These include:

Tuition Fees

Taking out a joint loan for bad credit with your partner or spouse is an excellent way to help pay for your children’s tuition fees or advance your education. It makes sense to jointly invest in your children’s education through a joint loan if you don’t have enough savings or don’t want them raking up too much debt with student loans.

Home Improvements

If you’re a couple or partners who are homeowners, taking out a joint loan for renovations and improvements is better than taking out single loans, especially if one or both of you have bad credit scores. Home improvements can be costly, and a joint loan helps you qualify for higher amounts to cover the costs while helping you avoid higher rates.

Debt Consolidation

If you’re facing lots of debt from personal loans, store cards or credit cards that are messing with your family accounts and making it hard to cover bills, then a joint loan for bad credit can be the solution. You may be able to refinance your debts into one joint loan with your partner to make your family finances more manageable. It also gives you some breathing room, making it easier to put food on the table and keep up with repayments.

Considerations When Taking Out Joint Loans For Bad Credit

The Combined Debt To Income Ratio

Sometimes not all co-applicants are helpful. In cases where your co-applicant has substantial debt and minimal income, your combined debt to income ratio may suffer. In such scenarios, you may have better chances of approval when you apply on your own. There are many personal loan options to consider even with bad credit, but you may have to borrow lower amounts.


It’s vital to remember that both parties involved remain 100% responsible for the loan repayment through joint liability regardless of what happens between them. You have to ensure everyone understands their obligation because if the other party doesn’t contribute to repaying the owed amount, you could end up repaying a considerable debt alone.

It doesn’t matter who spent the money, the items bought or who now owns them. It also won’t make a difference whether you’re in a civil partnership, marriage, or no relationship exists between you.

It’s wise to clarify the duties of each person towards repayments, ownership details and instructions in case of death or an accident to prevent future complications.

Joint Loans for Bad Credit Conclusion

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.

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