In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
The benefits of a joint loan are that it may be easier for approval of a loan, as both applicants are assessed on their credit rating and financial history, so there is more income to be considered.
Other things to be taken into consideration are:
- - Relying on another person when it comes to repayments: The truth is, by entering into a loan with another person you are sharing responsibility and thus putting trust in someone to do half the job. The bad side of joint loans is if things go pear-shaped and the other person doesn’t pay down their share, which may mean you end up liable for the entire payment or even face legal action if the loan isn’t paid.
- - You may over-borrow: Just because you can borrow more (in the eyes of your lender) doesn’t mean you should. Don’t just enter a joint loan for the sake of being able to get a larger sum if you and your co-applicant will struggle to pay it off.
- - Your credit rating may worsen: Where you or your co-borrower miss repayments or default on your loan, it will negatively impact both your credit scores. As mentioned above, you are trusting someone else to make repayments to help keep both yours and their credit rating healthy.
- - It may impact the relationship you have with your co-applicant: It’s no secret that money can ruin relationships, and joint personal loans are no exception. Before entering into the loan, ensure you have had the right conversations with your co-applicant and are confident you both understand the joint responsibility that comes with it.
