See: Joint Bond.
When you're looking for a loan, potential lenders will look at your income and credit score, along with whatever assets you have. They're trying to figure out your individual ability to repay the debt on time.
Joint credit allows you to pool resources with someone else.
You and a buddy are looking to open a margarita stand on the beach. In shopping around for joint credit, lenders will look at your combined incomes and take both your credit scores into account. Meanwhile, they will judge the combined total of both your asset holdings to compute the likelihood that you'll be able to repay the loan together.
Related or Semi-related Video
Finance: What is a partnership?23 Views
finance a la shmoop. what is a partnership? a marriage. joint ownership
of a bar. when two dudes put up half the dough each to share 50/50 in a time [two different people offer money for keys]
machine. well a partnership is just the merging
of two individuals in doing a given business deal or setting up a business
structure. if both are owners then both are liable for you know bad things
should they happen. partnerships carry a lot of financial danger if one partner
goes off the rails and decides to commit fraud in the name of the company or that
evil partner enters into a stupid company bankrupting contract, well then [bad contract sold to unsuspecting victim]
both parties pay for it. the innocent partner pays just as much in the form of
whatever financial damages befall the partnership as the evil one, and
partnership liabilities include personal assets if the partnership is structured
like a general partnership with limited partners having no personal liability so [ liability structures defined]
for all the good that a partnership can have it can get bad and ugly so you got
to enter partnerships carefully. spend lots of dough on lawyers before you set
it up so you don't have to after. [money exchanged for partnership contract ]
Up Next
What is an LLC? LLC stands for Limited Liability Company. It is a hybrid type of company that combines the corporate protections of separating corp...