What is the difference between a joint loan and a cosigner loan? This question is about Personal Loans with Joint Applications

Joint loans allow two people to share equal responsibility for the loan and have their information considered equally when they apply. Cosigners, on the other hand, use their credit score and income to help the primary borrower get approved and then are responsible for payments only if the borrower fails to repay the loan. There are other nuances to joint loans and cosigner loans that you should be aware of, too. Joint Loan vs. Cosigner Loan Category Joint Loan Cosigner Loan Loan responsibility Both applicants share responsibility for repaying the loan. The cosigner repays the loan if the primary borrower cannot. Income on the application Combines both applicants’ incomes. Both the borrower’s and the cosigner’s income are considered on the application, but the cosigner’s is weighed more heavily. Credit score requirement Considers both applicants’ credit scores. The cosigner’s credit score weighs more heavily than the primary borrower’s credit score. Types of loans available Personal loans Auto loans Home equity loans (and HELOCs) Mortgages Personal loans Auto loans Home equity loans (and HELOCs) Mortgages Student loans Examples of personal loan providers that offer them Citizens Bank FreedomPlus LendingClub LightStream Navy Federal Credit Union SoFi USAA Upgrade Wells Fargo FreedomPlus Navy Federal Credit Union PNC TD Bank Overall, there are many differences between a joint loan and a cosigner loan. If you think either type would benefit you, check out WalletHub's top-ranked joint personal loan offers and cosigner personal loan offers.

Ad Disclosure Ad Disclosure

What is the difference between a joint loan and a cosigner loan?

Answer Question Report Abuse

This question is about Personal Loans with Joint Applications

see this user

Grace Enfield, Content Writer

@grace_enfield • 02/03/22 This answer was first published on 02/03/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

Permalink Report Abuse

Joint loans allow two people to share equal responsibility for the loan and have their information considered equally when they apply. Cosigners, on the other hand, use their credit score and income to help the primary borrower get approved and then are responsible for payments only if the borrower fails to repay the loan. There are other nuances to joint loans and cosigner loans that you should be aware of, too.

Joint Loan vs. Cosigner Loan

Category	Joint Loan	Cosigner Loan
Loan responsibility	Both applicants share responsibility for repaying the loan.	The cosigner repays the loan if the primary borrower cannot.
Income on the application	Combines both applicants’ incomes.	Both the borrower’s and the cosigner’s income are considered on the application, but the cosigner’s is weighed more heavily.
Credit score requirement	Considers both applicants’ credit scores.	The cosigner’s credit score weighs more heavily than the primary borrower’s credit score.
Types of loans available	Personal loans Auto loans Home equity loans (and HELOCs) Mortgages	Personal loans Auto loans Home equity loans (and HELOCs) Mortgages Student loans
Examples of personal loan providers that offer them	Citizens Bank FreedomPlus LendingClub LightStream Navy Federal Credit Union SoFi USAA Upgrade Wells Fargo	FreedomPlus Navy Federal Credit Union PNC TD Bank

Overall, there are many differences between a joint loan and a cosigner loan. If you think either type would benefit you, check out WalletHub's top-ranked joint personal loan offers and cosigner personal loan offers.

Answer Question

Is it better to have a co borrower or cosigner?

Why is co-signing a loan not a good idea?

Should my wife be a co borrower?

WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.

WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.

Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.

Ask a Question

140

Ask Question

Ask Your Question

WalletHub Transparency

We are committed to being fully transparent with our readers. Opinions expressed here are the author’s and/or WalletHub editors'. WalletHub editorial content on this page is not provided, commissioned, reviewed, approved or otherwise endorsed by any company. In addition, it is not any company’s responsibility to ensure all questions are answered.