Should my spouse and I apply for a personal loan jointly or separately?

How joint personal loan applications work: Both incomes are included, which can support a larger loan amount or lower rate by reducing DTI. Both credit profiles are evaluated. Most lenders use the lower (primary borrower) score, though some use an average. Hard inquiries are pulled on both.

When joint is better: One spouse has strong income but limited credit history. Two incomes combined push DTI below the approval threshold. Both have similar credit scores and the combined income is the deciding factor.

When separate is better: One spouse has a 780 credit score and the other has 620. Applying separately in the higher-score spouse's name avoids the rate penalty of the 620 score. The lower-score spouse can be added as an authorized user on an account to improve their score over time.

Alternative - one primary, one co-signer: Rather than a joint application where both incomes and both scores count fully, some lenders allow one borrower to list the other as a co-signer. This structure sometimes allows more flexibility than a joint application.

Legal implications: Both joint applicants are equally liable. If the marriage ends, joint debt obligations do not automatically transfer. A divorce decree is not binding on the lender - both parties remain obligated to the lender regardless of what the divorce agreement says about who is responsible.

Tax note: Interest on a personal loan is not deductible, so the married filing jointly vs separately tax status does not affect the loan interest situation.