Skip to navigation Skip to content

Getting a joint loan: what you need to know

Joint loans can be a great way to access larger loan amounts or secure better interest rates by combining financial resources with another person. Whether you’re looking to finance a home renovation, make a large purchase, or achieve another financial goal, understanding how joint loans work and the shared responsibility involved is crucial. In this guide, we’ll explore the benefits and drawbacks of joint loans, how to apply for one, and the key considerations to keep in mind before proceeding.

Have you ever wondered, “Can I get a joint loan with my partner?” or “Can you do a joint personal loan without being married?” The answer is yes. Joint loans allow two people to combine their incomes and credit profiles to qualify for a larger loan or better interest rates. However, it’s important to understand the shared responsibility that comes with a joint loan before applying. Joint loans can be particularly beneficial in situations where both parties are contributing to a shared financial goal, such as financing a home renovation or making a significant purchase together.

How joint loans work

When you apply for a joint loan, both applicants are equally responsible for repaying the loan, regardless of how much each person contributes financially. This means that if one person cannot make payments, the other is still fully liable for the debt.

Application process:

  • Joint Financial Information: The application process for a joint loan typically involves submitting financial information for both applicants, including income, employment status, and existing debts.
  • Credit Check: Both applicants will undergo a credit check, and the lender will assess the combined creditworthiness to determine loan approval and interest rates.
  • Shared Responsibility: Once approved, both parties are listed on the loan agreement, and each person is legally responsible for repaying the full loan amount.

Understanding how to apply for a joint loan and the shared responsibility it entails is essential for avoiding potential financial issues down the road.

Advantages of joint loans

Joint loans offer several benefits, particularly for those looking to borrow larger amounts or secure favourable loan terms:

Higher borrowing power:

Joint loans combine the incomes of two applicants and can provide access to a larger loan amount than one person might qualify for alone. This can be useful for big expenses like home improvements or vehicle purchases.

Potentially better interest rates:

A strong combined credit score can lead to a lower interest rate on the loan, reducing the overall cost of borrowing. This makes joint loans an attractive option for couples or partners with good credit histories.

Shared financial goals:

Joint loans are ideal for financing shared goals, such as a home renovation project, a dream vacation, financing a wedding, or purchasing a new car. By working together, co-borrowers can achieve these goals more efficiently than individually.

If you’re wondering, “How to get a joint loan?” It starts with identifying these potential advantages and determining how they align with your financial goals.

Disadvantages of joint loans

While joint loans offer several benefits, they also come with potential drawbacks that should be carefully considered:

Shared responsibility:

Both parties are equally liable for the loan repayment, even if one person’s financial situation changes unexpectedly (e.g., job loss or illness). This shared responsibility can become a burden if one person cannot meet their obligations.

Credit score impact:

Missed or late payments can negatively affect the credit scores of both borrowers. To protect both credit profiles, it’s important to maintain regular communication and ensure that payments are made on time.

Relationship strain:

Financial disagreements or unforeseen circumstances can strain the relationship between co-borrowers. It’s crucial to have open and honest conversations about finances before entering into a joint loan agreement.

If you’re asking, “Can you get a joint loan without being married?”, the answer is yes. Joint loans aren’t limited to spouses or married couples—co-borrowers can include your partner and, in some cases, a parent or sibling. However, there are important factors to consider regardless of the relationship between co-borrowers.

Borrowers need to reside at the same address, and both parties must benefit from taking out the loan. The loan terms should align with the financial circumstances of both applicants, ensuring that the repayment plan is manageable for everyone involved. It’s essential to carefully evaluate the shared financial responsibility and the potential risks, such as missed payments affecting both credit scores, before proceeding with a joint loan.

Responsible use of joint loans

Using a joint loan responsibly requires careful planning and clear communication between both parties:

Open communication and clear agreements:

Before applying for a joint loan, it’s essential to have open discussions about each person’s financial situation, expectations, and responsibilities. Understanding how the loan will be repaid and what will happen in case of financial hardship is key to avoiding misunderstandings.

Create a budget:

Develop a budget that accounts for the loan repayments, ensuring that both parties can comfortably meet their obligations without accumulating further debt. A budget will help keep your finances on track and reduce the risk of missed payments.

Contingency plan:

Consider having a contingency plan in case one person experiences financial hardship or if the relationship between co-borrowers changes. This could include setting aside an emergency fund or having a clear strategy for how the loan will be managed if circumstances change.

Knowing how to apply for a joint loan is just the beginning; using it responsibly is crucial to ensuring a positive financial outcome.

Alternatives to joint loans

If a joint loan doesn’t seem like the right fit, there are alternatives to consider:

Guarantor loans:

Instead of a joint loan, one applicant could apply for a loan with a guarantor. The guarantor agrees to cover the repayments if the borrower cannot do so. This option can be useful if the borrower has a lower credit score but doesn’t want to share loan responsibility with another person.

Improving your borrowing power:

Another alternative is improving your credit score and financial situation before applying for a loan. This might involve paying down existing debts, increasing your income, or establishing a stronger credit history to qualify for better loan terms. These alternatives provide different ways to access financing without the shared responsibility of a joint loan.


Joint loans can be a powerful tool for achieving shared financial goals, offering benefits such as higher borrowing power and potentially better interest rates. However, they also come with shared responsibility, potential credit score impact, and the possibility of relationship strain. Before applying for a joint loan, it’s important to carefully consider these factors, maintain open communication, and ensure both parties are fully committed to the repayment plan. If you’re still unsure or have questions about getting a joint loan, visit our joint loan page or contact the Handy Finance team for more information.

Approvals are subject to Handy Finance’s credit criteria and responsible lending requirements. Fees, charges, terms and conditions apply. Finance provided to approved applicants by OurMoneyMarket Lending Pty Ltd ABN 64 605 231 669, trading as ‘Handy Finance’ holds Australian Credit Licence number 488228 and is a member of the Australian Financial Complaints Authority (AFCA). The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, we recommend that you consider whether it is appropriate for your circumstances. We recommend you obtain independent advice before acting on any information in this article.