In short
A joint application puts two people on the same agreement, and each of you is responsible for the whole debt. Lenders check both credit files, so a joint application does not hide one person's adverse credit, and it links your files together. Not every lender offers joint car finance, so ask us what is possible for your circumstances.
How joint car finance works
- Both names on the agreement. You apply together and both sign.
- Both fully responsible. The legal term is "jointly and severally liable". If one of you stops paying, the lender can ask the other for the whole amount, not just half.
- Both files checked. The lender looks at both credit files and both incomes.
- Your files become linked. A joint agreement creates a financial association, so lenders may look at the other person's file when either of you applies for credit in future.
Does it help if one of you has bad credit?
It can help with affordability, because two incomes may support a payment that one cannot. It does not cancel out adverse credit: the lender still sees the CCJ, default or IVA on the other person's file and weighs it up. And the person with the stronger file takes on the risk of paying the whole amount, plus a link to the other person's credit history.
Not every car finance lender accepts joint applications. We will tell you on the call whether a joint application is an option with the lenders on our panel for your circumstances.
Alternatives worth considering
- A single application. Apply in the name of the person who will mainly drive the car, using their own income. Specialist lenders consider adverse credit on single applications every day.
- A smaller amount. A cheaper car, a deposit or a part-exchange reduces the amount borrowed and can make the difference.
- A guarantor. Some lenders accept a guarantor, who agrees to pay if you cannot. It is a serious commitment for them, so ask us whether it is available before you ask a friend or relative.
Do not take out finance in your name for a car someone else will keep and drive. You would be responsible for every payment, and it can breach the terms of the agreement.
If you split up
The agreement carries on. Both of you remain responsible for the payments until it is paid off, however you split things between you. Options include one person settling the finance, selling the car to clear it, or one person taking out new finance in their own name.
Once you have no joint finances left, either of you can ask each credit reference agency for a notice of disassociation, which removes the link between your files. See how to check your credit file for free.
At a glance
| Single application | Joint application | |
|---|---|---|
| Who is responsible | You | Both of you, each for the whole amount |
| Income assessed | Yours | Both |
| Credit files checked | Yours | Both |
| Credit files linked afterwards | No | Yes, until you ask for the link to be removed |
| Availability | The usual way to apply | Some lenders only |
Finance is subject to status, affordability and lender approval. Over 18s, UK residents only. This guide is general information, not personal financial advice. We are a credit broker, not a lender.