Joint Loan Application Tips

Joint Loan Application Tips

Joint Loan Application Tips
If you​ are living with a​ partner or​ family member and you​ need some money but don't have the​ means,​ then you​ should think about applying for a​ joint loan .​
Joint loans can help you​ and a​ partner or​ family member both get their hands on​ more money than you​ could individually,​ whilst sharing the​ burden of​ repayment .​
If you​ want to​ know more about joint loans and how to​ apply for them,​ then here is​ some useful information that might help.
Who can I​ get a​ joint loan with?
Joint loans are not available for all types of​ relationship,​ but are in​ fact limited to​ certain partnerships .​
Married couples are the​ most common joint loan applicants,​ although unmarried couples are not eligible .​
Some companies will allow applications during engagement,​ but the​ loan will not be given until after marriage .​
Also accepted are applications from a​ parent and child .​
Although some loan companies also consider two brothers,​ all other sibling and family relations are generally not accepted.
Getting more money
The main reason to​ jointly apply for a​ loan is​ to​ get a​ larger amount of​ cash than you​ might be able to​ if​ you​ were applying on​ your own .​
Married couples or​ parents and children can include both of​ their incomes to​ allow for a​ larger loan to​ be taken out .​
If you​ have a​ similar salary,​ then you​ can usually double the​ amount that you​ can borrow.
Unequal earnings
Applying for a​ joint loan doesn't mean you​ both have to​ have excellent salaries .​
Even if​ one of​ you​ doesn't have a​ salary,​ but money earnt from a​ part-time job or​ other work,​ this can help you​ both to​ get more money .​
As long as​ you​ are both earning and can make a​ contribution to​ the​ repayment it​ will be in​ your interests to​ apply jointly.
Both responsible
Although both of​ you​ will get benefits from the​ loan,​ it​ is​ important to​ remember that you​ are also both responsible for the​ repayment of​ the​ loan .​
Even if​ you​ are married and split up,​ the​ amount still owed on​ the​ loan will need to​ be paid back by both of​ you​ .​
Of course there is​ more risk of​ default than a​ normal loan,​ because should one of​ you​ stop payments then the​ other may not be able to​ keep up and so you​ will both end up in​ default .​
This means you​ risk having your credit history damaged even if​ you​ were not responsible for the​ debt problem .​
Make sure that you​ can definitely afford to​ pay the​ loan back,​ even if​ you​ are no longer living with the​ other applicant.
Who should get joint loans?
Although most married couples are eligible to​ apply for a​ joint loan,​ they are not right for everyone .​
If one of​ you​ has a​ poor credit history or​ earns significantly less than the​ other,​ a​ joint loan may not be the​ right choice for you​ .​
Also,​ try and make sure that any joint loan you​ take out will benefit both of​ you​ .​
Just because you​ can get more money does not mean that money will benefit you​ both .​
Always use joint loans to​ fund something that will help you​ both,​ so that you​ can get the​ most out of​ your loan.

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