Best Joint Personal Loans for 2024

The Bottom Line

SoFi tops our list of the best joint personal loans, thanks to its high loan amounts, fast funding, and competitive rates. However, it has a fairly high credit requirement, making its loans out of reach for some borrowers. If you’re looking for more flexible borrowing criteria, consider an alternative lender like Upgrade or a credit union like Patelco.

Whether you’re applying with a co-borrower or not, consider pre-qualifying with multiple lenders whenever possible. You can review more lenders offering personal loans with our picks for the best overall personal loans. Some of these lenders allow co-borrowers, while others only allow co-signers or individual borrowers.

Guide to Choosing the Best Joint Personal Loan

What Is a Joint Personal Loan?

A joint personal loan is similar to an individual personal loan except that the joint loan has two borrowers instead of one. When you borrow a joint loan, both you and your co-borrower are responsible for paying back the loan. Plus, the loan will show up on the credit reports of each borrower. 

When you submit a joint application, the lender reviews your financial information and your co-applicant’s information. It reviews both of your credit histories, incomes, debt-to-income ratios, and other financial factors. That’s why adding a co-borrower to your application can boost your creditworthiness if you’re having trouble qualifying on your own. 

A co-borrower is somewhat different than a co-signer, though both can help you get approved or access better interest rates if your credit is subpar. A co-borrower is equally responsible for the loan, whereas a co-signer is generally only expected to make payments if the primary borrower falls behind.

Should You Apply for a Joint Personal Loan?

Applying for a joint personal loan could make sense if: 

• You need a loan for debt consolidation, medical bills, or another essential expense
• Adding a co-borrower could help you get approved or get better rates
• You and your co-borrower are on the same page about sharing debt and your plans for repaying the loan 

On the other hand, applying for a joint personal loan might not be the right move if you’re using the loan to fund non-essential expenses, such as a vacation. It also might not be right if you don’t have an open and trusting relationship with your co-borrower, as both your credit profiles could be damaged by late or missed payments. 

Debt Consolidation a Popular Reason for a Loan

According to Investopedia’s 2023 Personal Loan Borrower survey, debt consolidation is the most common reason cited for getting a personal loan. Paying for home improvements and large purchases were the next two most common reasons.

Where to Get a Joint Personal Loan

A variety of financial institutions offer joint personal loans, including: 

• Traditional banks
• Credit unions
• Online lenders
• Loan marketplaces that let you compare offers from multiple lenders at once 

Many lenders let you pre-qualify for a loan online, so it’s worth checking your rates with different types of lenders to see which can offer you the most affordable loan. 

Comparing Joint Personal Loans

As you compare joint personal loans, consider the following factors: 

• Interest rates: Compare multiple loan offers to find the lowest rate and reduce the amount you’ll need to pay in interest over time. 
• Fees: Keep an eye out for fees that could add to your costs of borrowing, such as origination fees, late fees, or prepayment penalties. Most reputable lenders don’t charge you for paying off your loan early. 
• Repayment terms: A shorter term will help you get out of debt faster, but it will come with higher monthly payments. A longer term will have more affordable monthly payments, but it will mean you pay more in interest over time. Try to strike a balance between monthly payments you can afford and keeping your interest costs down when choosing your loan terms. 
• Monthly payments: Your monthly payments will be directly impacted by the amount you borrow, your interest rate, and your repayment term. Make sure the loan has monthly payments you can afford each month so you don’t risk falling behind. 
• Credit requirements: Although not every lender discloses this information, it’s worth doing some research to find out what a lender’s minimum credit score is to qualify for a loan. Having this information might also help you decide whether to apply individually or with a co-borrower. 
• Loan use restrictions: Find out if the lender has any rules around how you can use the loan. 
• State availability: Some lenders only operate in certain states, so check a lender’s availability to ensure it provides loans where you live. 
• Reliability of your co-borrower: Before taking on debt with someone, have a clear and honest conversation about your expectations for paying back the loan. Otherwise, if you miss payments, you could harm your credit and strain your relationship. 

Average APR by Credit Score

Shorter Repayment Terms Can Save You Money

Based on data from 18 lenders, the average personal loan interest rate is 23.88% for terms of about 48 months. However, the Fed reports that 24-month personal loans have an average rate of 12.35%.

If you can afford the higher monthly payments that come with a shorter term, it could save you a lot of money. The chart below shows the potential savings of a 24-month term as opposed to a 48-month term on a $10,000 personal loan:

Keep an Eye on the Fed's Target Federal Funds Rate

The Fed held rates steady at its most recent meeting March 19-20—the fifth consecutive meeting at which it has done so. From March 2022 through July 2023, the Fed increased its target rate range 11 times, from near zero to 5.25–5.50%. Before that rate-hiking campaign, the average APR for a 24-month personal loan from commercial banks was 9.38%. That number has risen along with the Fed's rate hikes to 12.35%.

Fed members indicated that they expect to cut rates later this year, but until that happens, lending rates are unlikely to get any lower. Because personal loans typically are fixed-rate products, the rate you get when you take out your loan is the rate you'll have for the duration of that loan. Lending rates typically will rise or fall along with what the Fed does, so if you expect to have a longer repayment term, it might be a good idea to wait until later this year or next year to get a personal loan. The Fed is scheduled to meet again April 30–May 1.

How to Qualify For and Apply For a Joint Personal Loan

The process to apply for a joint personal loan will vary by lender, but here are some steps you’ll likely need to take: 

1. Check qualification requirements: While specific criteria will vary by lender, most want to see a minimum credit score, income, and debt-to-income ratio. Applying jointly means the lender will take both your and your co-borrower’s financial profiles into account. 
2. Check your and your co-borrower’s credit scores: Most personal loans are unsecured, so lenders rely on your credit profile to determine whether you qualify for a loan. Review your credit reports and scores so you know what you’re working with. 
3. Determine your loan amount: Before you apply, use a personal loan calculator to determine how much loan you can afford at different terms and rates. 
4. Shop around for loan offers: Take advantage of pre-qualification to check your rates with no impact on your credit score. Compare loan features like APR, repayment terms, fees, and monthly payments to determine the best offer for you. 
5. Submit a full application: If you see a loan offer you like, your next step will be to submit a full application. Both you and your co-borrower will share your personal details and upload any required documentation, such as pay stubs. At this point, the lender will run a hard credit inquiry on both your credit reports. 
6. Receive your loan funds: The final step is receiving your loan funds. The lender might send them directly to you, or to your creditors if you’re consolidating debt. Read over the details of your loan agreement to make sure you know when your first payment is due. Consider setting up autopay so you don’t miss a payment.

Alternatives to a Joint Personal Loan

Before applying for a joint personal loan, it may be worth exploring other financing options. Here are some alternatives to consider: 

• Individual personal loan: If you can meet a lender’s requirements on your own, you could consider taking out the loan in your own name so you don’t have to share the debt with anyone else. 
• Secured personal loan: Backing a loan with collateral, such as a vehicle or savings account, is another option. Secured loans tend to have more flexible credit requirements than unsecured ones, but a lender can seize your collateral if you default on the loan. 
• Credit card: You may be able to use a credit card to cover expenses, but beware of high APRs and fees. Some credit cards offer 0% APR for a certain period of time, which could work like an interest-free loan if you can pay off your charges before the promotional period comes to an end. 
• Home equity loan or HELOC: Homeowners may be able to tap into equity with a home equity loan or line of credit. Home equity loans offer a lump sum of funding upfront, whereas HELOCs let you withdraw money as needed. Both loans are second mortgages that use your home as collateral, so you could lose your home to foreclosure if you can’t pay back the debt.

Why You Should Trust Us

Investopedia collected and analyzed hundreds of key data points from over 70 companies across three months to identify the most important factors for readers choosing a joint personal loan. We used this data to review each company for rates, fees, repayment terms, credit requirements, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999, and has been helping readers find the best joint personal loans since 2023.

How We Pick the Best Joint Personal Loans

To evaluate and rank personal loan providers we collected hundreds of data points across 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more. To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted. We grouped those factors into four broad areas:

• Loan costs (advertised APR, fees, and six other factors): 29.25%
• Loan terms (loan amount, repayment term, and three other factors): 22.25%
• Borrowing requirements (credit score, membership requirement, and six other factors): 28.5%
• Additional features (online application, pre-qualification, and eight other factors): 20%

Learn more about how we evaluated personal loans in our complete methodology.

Guide to Personal Loans

Learn more about personal loans:

• What Is a Personal Loan?
• How Do Personal Loans Work?
• When Are Personal Loans a Good Idea?
• How to Get a Personal Loan
• How to Apply for a Personal Loan
• How to Use a Personal Loan
• Where to Get a Personal Loan
• Personal Loans Vs. Credit Cards
• Alternatives to Personal Loans
• Personal Loan Calculator
• Personal Loans Methodology