Compare joint application personal loans

Just as it sounds, a joint application personal loan is simply a personal loan that allows for two applicants to be considered, resulting in shared financial responsibility upon approval. Each of the co-applicants are required to fill out their portion of the joint personal loan application form, as well as submit any necessary supporting documentation to the credit provider.

Some of the reasons two individuals might consider applying for a joint personal loan as co-borrowers include:

• To fund a shared expense: If you're going on a holiday or buying a car together with your partner, it might make sense to also have shared responsibility for the cost.
• To consolidate debt: If you and your partner have multiple debts and/or credit cards in separate names, and are considering merging your finances, you may consider a joint personal loan for debt consolidation purposes.
• To strengthen your chance of approval: As the lender will assess both applicants' income, along with other factors, you may have a stronger change of approval than you otherwise might have.
• To borrow a larger sum: If you want to borrow a larger loan amount than you may individually be approved for, a joint personal loan could potentially help.

What can I use a joint application personal loan for?

Just like with standard personal loans, joint application personal loans are available for a wide variety of loan purposes. These include:

• Home improvements
• Wedding
• Holidays
• Medical bills
• New car loan
• Boat loan
• Student loan
• Motorcycle loan

When comparing joint application personal loans, there are a few factors to consider to find the most suitable loan.

• Interest rate: The loan's interest rate determines how much interest you will pay on the amount borrowed. It's important to compare interest rates when shopping for a loan, but keep in mind that the advertised rate does not include any additional fees or charges.
• Comparison rate: In contrast to the advertised interest rate, the comparison rate does include the main fees charged. Comparing different comparison rates can give you a better idea of the cost of the loan.
• Fixed or variable rate: Fixed rate personal loans can give you certainty with set repayment amounts, while variable rate personal loans can fluctuate with the market. 
• Secured or unsecured personal loan:A secured loan requires the borrower to provide an asset as collateral, whereas an unsecured loan does not. A secured loan will often have a lower interest rate than an unsecured loan, but the borrower takes on the risk of losing their asset if they default on the loan.
• Features: Some of the features a loan might offer include a redraw facility, unlimited extra repayments and flexible repayment options. Consider which features are of value to you to ensure the loan you choose is the most suitable.
• Fees: It's important to factor fees into your comparison, as they can greatly increase the total cost of the loan. Some common fees include application fees, establishment fees, ongoing monthly fees and early repayment fees.

To determine how much you can afford to borrow, consider using RateCity's personal loan calculator. It can provide you with an estimate of how much your loan repayments might be, based on your preferred loan amount, loan term, interest rate and credit score. It can also tell you the difference between weekly, fortnightly and monthly repayments, the total amount of interest payable over the life of the loan, as well as the total cost of the loan.

Lenders will assess your income and expenses to determine whether you will be able to service the loan. So, it's important to have an idea of what you can comfortably afford to borrow before you submit an application, in order to avoid having it rejected.

When applying for any financial product, it's important to consider your personal financial situation. For information on credit products specific to your personal circumstances, reach out to a finance broker or adviser.