What is joint credit?
Joint credit is a type of financial arrangement in which two or more people are involved to share credit. They enter a contract to be equally responsible for repaying a debt incurred by one of them. This type of credit sharing is common among spouses and family members who want to help one another out.
Types of Joint Credit
Different types of Joint Credit are available, including co-borrowing and co-signing. Co-borrowing involves two co-applicants applying for a loan together, each taking on full repayment responsibility. Co-signing is when someone becomes responsible for the debt if the primary borrower defaults or fails to make payments on the loan. It is an agreement that ensures that all parties involved are held accountable when it comes to successfully paying off a loan.