Joint car finance
with bad credit

What is joint car finance?

Joint car finance is when two people apply for car finance together and share responsibility for making the monthly payments. It can help if one person has bad credit and needs a joint applicant—someone with a better credit score—to improve their chances of approval.

Both applicants sign a car finance agreement, which means they are legally responsible for repaying the loan. If one person cannot make a payment, the other must cover it to avoid missed payments or defaults. Lenders assess both applicants’ income and credit history before deciding whether to approve the joint car finance application.

A joint finance application also links both applicants’ financial records with credit reference agencies. This means that if one person has bad credit, it could impact the other’s ability to borrow in the future. However, keeping up with the repayment schedule can help both applicants build a stronger credit score over time.

Before applying for joint car finance, both applicants must be sure they can afford the monthly repayments. A joint car loan can increase the likelihood of approval, but it also comes with shared financial responsibility. Choosing the right co-borrower is essential to ensure both applicants can manage the loan successfully.

Can I make a joint application for car finance?

From our experience helping customers find the right car finance, we know that applying with a joint applicant can increase your approval chances. Yes, you can make a joint car finance application if you and your joint applicant meet the lender’s requirements. One key condition is that both of you must live at the same address. This helps lenders assess financial stability and ensures both parties can be contacted if needed.

At Carboom, we specialise in helping car finance applicants with bad credit secure the right deal. If you’re considering applying for joint car finance, our team can guide you through the process and help you understand your options.

When you make a joint finance application, both applicants must sign the Hire Purchase Agreement, meaning you are both legally responsible for the monthly payments. If one person has a lower credit score, a partner’s income could improve the approval chances, as lenders consider combined earnings when reviewing your finance application.

However, a joint application also means your financial records become linked through credit reference agencies. This can affect future borrowing, as lenders may assess the credit history of both applicants when reviewing new car finance applications. That’s why it’s important to choose the right joint applicant and make sure you’re both comfortable with the commitment.

Can you get joint car finance with bad credit?

Yes, we know that getting joint car finance with bad credit is possible. If one of you has a better credit score, it can improve your chances of approval because lenders look at both applicants when making a decision.

That said, if one person has bad credit, lenders might offer stricter loan terms or charge higher interest rates to reduce their risk. This could mean higher monthly payments or additional conditions in the finance agreement before being approved.

The good news is that specialised lenders are more open to helping car finance applicants with less-than-perfect credit.

At Carboom, we specialise in finding car finance solutions for people with bad credit. If you're considering a joint car finance application, our team can help you explore your options and connect you with specialist lenders who understand your situation. Some even offer credit-building options, so keeping up with your repayments could help improve your credit score over time.

Apply today and take the next step towards financing your vehicle.

How does joint financing work?

With joint car finance, both applicants share equal responsibility for the loan. Lenders assess both applicants’ credit histories, incomes, and overall financial situations to determine if they qualify and what loan terms apply. If one person has a stronger credit score, it can help improve the chances of approval and possibly secure better terms.

Some lenders require both applicants to live at the same address, as this demonstrates financial stability. Regardless of individual circumstances, both applicants are legally responsible for making all monthly payments. If one person misses a payment, the other must cover it in full to avoid late fees or damage to their credit score.

Joint liability explained

When you take out joint car finance, you and your joint applicant share joint liability. This means both of you have legal responsibility for the outstanding loan amount, not just a portion of it. If one person fails to pay, the other must cover the full debt responsibility to avoid missed payments and potential damage to both credit scores.

This legal responsibility applies regardless of who actually drives the vehicle. Even if only one of you uses the car, both are equally responsible for the finance agreement. Lenders don’t take marital status or relationship type into account—whether you're partners, family members, or friends, the finance contract remains legally binding.

Because of this, it’s important to think carefully before entering a joint finance agreement. You should only apply with someone you trust and be confident that both of you can manage the monthly payments. If one applicant cannot repay, the lender will still expect the full amount from the other.

At Carboom, we help you understand the risks and responsibilities of joint liability before you apply. Get expert guidance today and explore your best joint car finance options.

Advantages of a car finance joint application

1. Stronger approval chances – Lenders assess both credit scores and income levels, which can improve eligibility and make it easier to get approved.
2. Better loan terms – A higher credit rating from one applicant may result in a lower interest rate, reducing overall costs.
3. Higher affordability – Since both incomes are factored in, you may qualify for lower monthly repayments and a higher loan amount.
4. Support for different financial strengths – If one applicant has a limited credit history or poor credit, the other’s stronger financial status can balance the risk and improve the application outcome.

Disadvantages of joint car finance

1. Must live at the same address – Many lenders require both applicants to share an address, which can limit eligibility for some borrowers.
2. Accountable for debt – Both applicants are legally responsible for repaying the outstanding loan amount. If one person cannot pay, the other must cover the full monthly repayments.
3. Credit reports are linked – A missed payment can affect credit scores, making it harder for both applicants to get future finance. Lenders assess both credit histories when approving new loans.
4. Registered keeper limitations – Even though both applicants share the financial responsibility, only one person can be named as the registered keeper of the vehicle.
5. Hire-purchase agreement terms – The car remains the finance company’s property until the final payment is made. Ownership is only transferred once the total amount payable has been cleared.

Should I get joint car finance or a guarantor?

Choosing between joint car finance and a guarantor loan depends on your financial situation and needs. With joint car finance, both applicants share ownership and responsibility for the vehicle. This option works well for couples, family members, or trusted partners with stable incomes who want equal rights to the car.

A guarantor loan, on the other hand, helps those with credit limitations. The guarantor (often a family member or close friend) agrees to cover the monthly payments if the borrower cannot, but they have no ownership rights to the vehicle. This option suits those who may struggle to get finance alone but have someone willing to back them.

Key Differences:

Joint Car Finance:

• Both applicants own the vehicle
• Equal responsibility for monthly payments
• Suitable for stable incomes and shared financial commitments

Guarantor Loan:

• Only the borrower owns the vehicle
• The guarantor is responsible for missed payments but does not drive the car
• Designed for those with credit limitations who need extra support

If you’re unsure which option is right for you, speaking to a financial professional can help. At Carboom, we provide expert guidance to help you make the best decision. Contact us today to explore your options.

Is joint car finance cheaper?

Joint car finance can sometimes be a more affordable option, but it depends on both applicants’ credit histories and the lender’s criteria. If you and your joint applicant have a strong credit profile, lenders may offer competitive rates, which can lower your monthly payments and reduce the total amount payable.

But what happens if one of you has poor credit? In that case, the lender might charge higher interest rates or adjust the loan terms, making the finance more expensive. Sometimes, applying alone could result in better finance terms, depending on individual credit scores.

The final cost also depends on factors like the lender, loan amount, and repayment structure. Comparing options can help you find the best deal. At Carboom, we make the process easier by helping you explore the right finance solutions for your needs. Apply today and see how much you could save!