When you are working to pay down debt, interest rates and monthly payments matter. One option worth considering is applying for a loan with a spouse or co-borrower. In the right situation, it can lead to better terms and faster progress, though it is not the right fit for everyone.
As part of VyStar’s Debt Payoff Challenge, we are encouraging members to understand the tools available to them and when they make sense. Applying jointly is one of those tools.
How Can Applying With a Co-Borrower Help?
When two people apply together, lenders consider both incomes and both credit profiles. If one borrower has stronger credit or more stable income, it can improve the overall application.
In a recent example, a VyStar member visited our Regency Commons branch looking to utilize our Skip A Pay program, which temporarily pauses a payment, on a maxed-out credit card. During the conversation, Ehab, a Senior Relationship Specialist at the branch, learned the household had joint income and that the member’s spouse had a strong credit profile.
By applying together, the household was able to refinance an auto loan and consolidate debt with better terms. The results were significant:
An auto loan with an interest rate of over 26% was reduced by about 75%
Monthly payments were lowered from over $600 to under $400
A $900 personal loan was paid off through debt consolidation
More than $220 in immediate monthly cash flow was freed up
An estimated savings of more than $20,000 in interest and debt costs over the life of the loans
“As we talked through his options and reviewed the numbers together, the member began to feel more at ease,” Ehab said. “He appreciated having a clear explanation and understanding how applying with his spouse could strengthen their overall financial picture. Seeing the reduced payment and improved cash flow gave him confidence that this was a practical step forward for his household.”
What Benefits Does Applying With a Co-Borrower Offer?
Applying with a spouse or co-borrower may help you:
Qualify for lower interest rates
Reduce monthly payments
Consolidate multiple debts more effectively
Strengthen an application if one borrower has limited credit history
For households tackling high-interest debt, these improvements can create meaningful breathing room in the budget.
“At VyStar, our focus is on helping members make informed decisions that support their long‑term financial well‑being,” Ehab said. “Being able to offer guidance that eases financial stress and helps a member feel more in control is why building relationships and having these conversations is so important.”
What Other Factors Should I Consider When Applying Jointly?
Applying jointly also means sharing responsibility. Both borrowers are equally responsible for the loan, regardless of who makes the payments. Before applying together, it is important to consider:
Both credit reports can be affected by missed or late payments
The debt counts toward both borrowers’ credit utilization
Changes in income or financial priorities can impact repayment
Applying with a spouse or co-borrower works best when there is clear communication and a shared financial plan.
How to Decide If It Is Right for You
If you are considering applying with a spouse or co-borrower, start by asking a few questions:
Does one of us have stronger credit that could improve the rate?
Are we comfortable sharing responsibility for this debt?
Will the improved terms help us reach our debt payoff goals faster?
Actual results vary based on credit, income and loan terms. For many members, the answer becomes clearer once you sit down, review both credit profiles and look at the numbers together.
Whether applying jointly or exploring another solution, VyStar employees are proud to help members work toward their financial goals.