A joint application is one where you and another person, for example your spouse, would apply for a car finance agreement together, using both of your personal details in support of your application. Sometimes when applying for car finance it may increase your chances of being approved by making a joint application, especially if you have a history of poor credit and your joint applicant does not. Please note that not all lenders will accept joint applications.
Sometimes when an individual cannot qualify for credit on their own merit, they might consider completing a joint application which may increase their chances of being accepted by a lender. Couples also often want to apply for a joint application so that both can use the car without risk.
When an application for car finance has been submitted the lender will carefully review both parties’ income, debts and credit history. A full credit search will be conducted on both applications and a decision made on the overall situation as to whether the repayments can be met. Decisions are made on the overall situations as it's not uncommon to get one applicant that has an excellent credit history, but an insufficient income whilst the other might have a weaker credit history, but a higher level of income.
The most important thing to do before you decide on a joint application is to have a look at both party’s credit history. This will prepare you for the application by giving an insight into both of your credit histories and their respective strengths and weaknesses. It can also help avoid any embarrassment should one of you have any adverse credit on file that could affect your chances of being accepted that you had not revealed to your joint applicant.
Applying as a joint applicant means that if one of you can no longer pay for their part of the finance agreement, both parties will have this recorded on file. The agreement is not split in half, so you should be aware of the potential negative affects to your credit file that could arise should fulfilling the terms of the loan become a problem.