Joint Application vs. Co-Signor

The process of applying for a car loan or an unsecured loan is very different. In the case of a car loan, or a mortgage for that matter, is that if you default on the auto loan, the company can come take back the merchandise that you purchased with that loan. An unsecured loan however, has nothing against it so there is usually nothing for the bank to take.

This is where joint applications and co-signors come in. You can have either a co-signor or a joint applicant on a car loan, and have them assist you in getting the auto loan if your credit is either not that good, or you don’t make enough to qualify. However, with an unsecured loan you can only have a co-signor.

Joint applications are when you are purchasing something, like a house or a car. The item bought will be shared jointly between both people who have applied for the loan, so all the processes of the car loan, or whatever, will be shared as well.

However, unsecured loans mean that there is nothing to be shared except the money itself. You can get a co-signor to say that they believe you will pay the money back, and they are responsible for the debt if you fail to pay. However, there isn’t anything to share such as in a car loan, so they cannot be a joint borrower.

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