Joint Personal Loans – Can a Cosigner Help You Get Approved?

Joint Personal Loans can be a great way to get out of debt, but the key is making sure that you are getting a loan that is right for you. You might want to consider using a cosigner, or you might want to increase your debt-to-income ratio.

Cosigner vs co-borrower

If you’re in the market for a new loan, you may wonder whether a cosigner can help you get approved for a joint personal loan. A cosigner is a person who signs a loan application on your behalf. However, a cosigner is not responsible for your payments if you default on the loan.

Often, a cosigner is a family member, such as a spouse, sibling, or parent. Depending on your circumstances, a cosigner can help you secure a better interest rate, larger loan amount, or even lower monthly payments.

A cosigner is also a good way to secure a lower debt-to-income ratio. This is because a cosigner’s income is more heavily weighted than yours.

Another reason why a cosigner can be beneficial is if your primary borrower has poor credit. A cosigner will be able to reassure a lender that your repayment of the loan will be on time and in full. This can make a big difference to a lender’s decision to approve a loan.

Getting a loan with a loved one

If you are in the market for a personal loan, you may be thinking of getting a joint one with a friend or family member. This is a sensible move considering the fact that a co-signer with a good credit history will be able to get you a much better interest rate than you would on your own. But before you go out and sign up, here are some of the things you should know.

The best way to start is by researching potential lenders. Many lenders offer online applications which can be a breeze to complete. Once you fill out your application and submit it, you can expect to hear back in a few days. Some lenders even offer prequalified options, which speed up the loan application process a bit.

Adding a second co-signer to your loan will also improve your chances of being approved. This is especially true if you have bad credit. However, your lender may still deny you the funds if they see you as a risk.

Increase debt-to-income ratio

Debt-to-income (DTI) ratios are one of the most important measures of credit worthiness. They are not directly related to a person’s credit score, but can have a major impact on loan approval.

The debt-to-income ratio is calculated by dividing your monthly payments for debt, including minimum credit card payments and rent/mortgage payments, with your gross monthly income. Lenders will typically require you to increase your income or reduce your debt before they will approve your loan.

You may be surprised to learn that most lenders do not advertise maximum DTIs. Instead, they provide guidelines to help you understand how your debt-to-income ratio affects your loan approval.

Ideally, your DTI should be below 40%. This will improve your ability to qualify for a future loan and reduce your interest rates. A DTI of more than 50% is considered too high.

You can lower your DTI ratio by increasing your income, paying off your debt, and creating a budget. Using a personal monthly budget is a good way to keep track of your debt and make more efficient use of your money.


When you are thinking about applying for a joint personal loan, there are many factors you need to consider. A few of these things include your credit, your relationship, your financial history, and your job security.

A good cosigner can make all the difference in getting a loan. It is best to choose a cosigner with a good credit score. This will help ensure that you get a better rate and that your credit score isn’t negatively impacted.

Adding a co-borrower to your loan application can increase the amount you can borrow. This is especially true if you have good credit and a solid credit rating. The two of you can also work together to improve the terms of the loan.

One of the biggest disadvantages of applying for a joint personal loan is that it can hurt your credit. If your partner defaults on the loan, it can be detrimental to both of your credit scores.

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