The benefit of a joint loan application is situational. If both parties have bad credit, you have to ask whether the co-applicant helps more than hurts. Typically, the person with the higher credit score is the primary applicant. How co-applicants with lower credit scores help may not be obvious, but they can indeed if they can demonstrate additional income or assets in excess of any debt they have. Lenders have more to work with when evaluating a joint loan application. For example, a co-applicant may have a long, steady employment record and a reliable income. These factors help despite the co-applicant’s bad credit score. But not all co-applicants are helpful. If a co-applicant has substantial debt and little income, then your combined debt-to-income ratio will suffer. In that situation, you may have a better chance of approval by applying on your own. If you can’t supply a helpful co-applicant, you may have to settle for a smaller loan. That’s not all bad — you’ll pay less interest when the loan is smaller. Another factor is whether the loan is secured. If you use your equity in a home or vehicle as collateral, you may not need a co-applicant to qualify for a loan. Conversely, if your co-applicant is the one who brings collateral to the deal, then his or her presence may be decisive.