Best Personal Loans With a Cosigner in 2022

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Best personal loans with a cosigner

LenderBest forAPR*Loan amountLoan term
Large loan amounts5.74% - 19.99%*$5,000 - $100,00024 to 144* monthsSee Offers
Debt consolidation7.04% - 35.89%$1,000 - $40,00036 or 60 monthsSee Offers
Navy Federal Credit UnionMilitary members and veterans7.49% - 18.00%$250 - $50,00060 monthsSee Offers
Quick funding18.00% - 35.99%$1,500 - $20,00024 to 60 monthsSee Offers
SoFi logoZero fees7.99% - 23.43%$5,000 - $100,00024 to 84 monthsSee Offers
Bad credit borrowers7.46% - 35.97%$1,000 - $50,00024 to 84 monthsSee Offers

*APR may include an autopay discount. Read our methodology.

Lender details

LightStream: Best for large loan amounts

Loan details:

  • APR: 5.74% – 19.99%*
  • Loan amount: $5,000 – $100,000
  • Loan term: 24 to 144* months

Overview: Not only does LightStream, a division of Truist Bank, offer same-day funding to applicants (conditions apply), but it also doesn’t charge borrowers any fees.

 

While Lightstream has some of the most competitive rates on our list, it may be difficult for consumers with less-than-perfect credit scores to qualify. However, Lightstream does offer borrowers with low credit scores the option to fill out a joint application.

 

Lightstream doesn’t offer prequalification, so if you want to see your potential rates, you’ll have to submit to a hard-credit pull.

 

Key facts:

 

  • LightStream’s flexible term lengths give you the opportunity to determine how big your monthly payment will be. If you choose a longer term, your monthly bill will be smaller, as you’ll be stretching out your repayment over a longer period of time. Keep in mind that you’ll pay more interest over the life of the loan with a longer loan term.
  • LightStream doesn’t charge an origination fee, meaning you won’t have to spend any money up front to access your cash. LightStream also doesn’t charge prepayment fees for paying off your loan early.
  • LightStream states that it looks at your credit and payment history when originating personal loans. If your credit is low enough that you’re considering a cosigner, you may not qualify for the lower end of interest rates that LightStream offers.
ProsCons

  Low starting interest rates

  No origination fees

  No prepayment fees

  Same-day funding available (conditions apply)

  No option to prequalify

  You can take out a longer-term loan, but you’ll pay more interest

  Consumers with low credit may not qualify

*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 5.49% APR with a term of 3 years would result in 36 monthly payments of $301.91.

By clicking “See Personal Loan Offers,” you may or may not be matched with any lender mentioned in this article. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

LendingClub: Best for debt consolidation

Loan details:

  • APR: 7.04% – 35.89%
  • Loan amount: $1,000 – $40,000
  • Loan term: 36 or 60 months

Overview: LendingClub offers joint loans to applicants who may not qualify for a personal loan otherwise. With this lender, you can receive your funds within 24 hours of approval and won’t be charged a prepayment penalty if you choose to pay off your loan early.

 

Another one of LendingClub’s perks is that it offers consumers the choice to use their personal loan funds toward business purposes — an option most other lenders prohibit.

 

However, LendingClub’s APR can run high, and when you take out a loan, you’ll have to pay an origination fee — 3.00% - 6.00% of the total balance of your loan.

 

Key facts:

 

  • If you need money quickly, LendingClub may be a good option. According to the company, it can close your loan and deposit your money in your bank account in as little as 24 hours.
  • If you pay off your LendingClub loan before its term ends, you won’t be hit with any prepayment fees.
  • When you first apply, LendingClub will run a soft inquiry to check your credit, which won’t negatively affect your score. A hard inquiry, which will impact your credit, will be required before funds can be disbursed.
  • LendingClub charges a one-time origination fee of 3.00% to 6.00% of your loan amount, which will be deducted at funding.
  • You can make payments on your LendingClub loan online, by phone or by check.
  • If you make your payment more than 15 days late, LendingClub might charge a late-payment fee.
ProsCons

  May receive funds within 24 hours of approval

  No prepayment fees

  Option to prequalify for a loan

  Charges an origination fee of 3.00% - 6.00%

  Charges high interest rates (up to 35.89%)

  Limited loan terms of 36 or 60 months

By clicking “See Personal Loan Offers,” you may or may not be matched with any lender mentioned in this article. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

Navy Federal Credit Union: Best for military members and veterans

Loan details:

  • APR: 7.49% – 18.00%
  • Loan amount: $250 – $50,000
  • Loan term: 60 months

Overview: While Navy Federal Credit Union does allow you to apply for a personal loan with a cosigner, you will have to become a member first. To become a member with this lender, you’ll need to fit one of the following criteria:

  • An active duty military member
  • Member of the Delayed Entry Program
  • Department of Defense officer candidate/Reserve Officers Training Corps
  • Department of Defense reservist
  • A veteran, retiree or annuitant
  • A family or household member of someone who fits the above criteria

 

With Navy Federal, you won’t have to pay an origination fee and the APR is capped at 18% due to federal laws around how much interest credit unions can charge.

 

Key facts:

 

  • Similar to other credit unions, you’ll have to become a member of Navy Federal in order to receive a loan.
  • Unlike many lenders, Navy Federal does not charge borrowers an origination fee. However, if you’re late on payments, you may be charged a $29 late fee.
  • At just $250, Navy Federal’s minimum loan limit may make this lender a good fit for consumers looking for a small personal loan.
  • Other than its membership criteria, Navy Federal doesn’t offer up many details on how to qualify for a personal loan on its website, including what credit score you need.
ProsCons

  Low maximum interest rate of 18.00%

  Flexible term lengths of 60 months

  Small borrowing minimum of $250

  Charges a $29 late fee

  Must be connected to the military to be eligible

  Unclear on some personal loan qualification requirements

By clicking “See Personal Loan Offers,” you may or may not be matched with any lender mentioned in this article. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

OneMain Financial: Best for quick funding

Loan details:

  • APR: 18.00% – 35.99%
  • Loan amount: $1,500 – $20,000
  • Loan term: 24 to 60 months

Overview: If you can qualify for a personal loan with a co-borrower, OneMain Financial offers benefits including quick funding timelines and prequalification services.

 

Aside from offering joint applications, OneMain Financial also provides secured loans to borrowers who want to increase their chances of getting approved. With this lender, borrowers can put up a vehicle as collateral and potentially secure lower interest rates.

 

On the downside, however, OneMain Financial charges higher interest rates than other lenders that allow for cosigners (35.99%). With a OneMain Financial personal loan, you may also have to pay an origination fee that can range anywhere from 1.00% - 10.00%.

 

Key facts:

 

  • OneMain Financial states that you could receive your funds within a day of applying for your personal loan.
  • OneMain Financial doesn’t charge a prepayment fee.
  • The interest rates that OneMain Financial offers are fairly high, with the lowest possible APR being 18.00%.
  • OneMain Financial does charge origination fees for its personal loans (1.00% - 10.00%). These loans vary by state, so you’ll have to check with the bank when you’re applying.
ProsCons

  May receive funds within one business day of approval

  No prepayment penalties

  Flexible loan terms

  Requires an in-person visit to branch

  Charges higher interest rates

  Charges an origination fee (1.00% - 10.00%)

By clicking “See Personal Loan Offers,” you may or may not be matched with any lender mentioned in this article. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

SoFi Bank, N.A: Best for zero fees

Loan details:

  • APR: 7.99% – 23.43%
  • Loan amount: $5,000 – $100,000
  • Loan term: 24 to 84 months

Overview: Aside from allowing consumers to have a co-applicant, SoFi offers personal loan borrowers a plethora of perks, including no fees. This means borrowers won’t have to worry about origination fees, prepayment penalties or even late fees.

 

However, when seeking a loan with a co-applicant, there are a few things to bear in mind before applying with SoFi.

 

First of all, any co-applicants must live at the same address as you. Second, having a co-applicant can add at least a week to the application approval process. If you’re in need of quick cash, this may not be the best option for you.

 

SoFi also offers large loan amounts (up to $100,000), so if you’re in need of a large sum, this lender may be worth considering.

 

Key facts:

 

  • Along with Lightstream, SoFi offers one of the largest ranges of loan amounts you can borrow $100,000).
  • Unlike most lenders, SoFi is completely fee-free. Aside from not charging an origination fee (which would come out of your overall loan balance), borrowers won’t have to worry about late payment fees either. This isn’t to say, however, that you won’t be impacted by late payments.
  • SoFi has a laundry list of ways you cannot use their loans, including the following: education expenses, business expenses, purchasing real estate or securities, making investments and short-term bridge financing.
  • SoFi also offers a 0.25% discount for using autopay, which can help lower the overall cost of your loan.
ProsCons

  Does not charge any fees

  Offers unemployment support

  Provides 0.25% autopay discount

  High maximum loan amount

  Co-applicant must live at same address as you

  Having a co-applicant can lengthen the application process significantly

  High minimum loan amount

By clicking “See Personal Loan Offers,” you may or may not be matched with any lender mentioned in this article. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

Upgrade: Best for bad-credit borrowers

Loan details:

  • APR: 7.46% – 35.97%
  • Loan amount: $1,000 – $50,000
  • Loan term: 24 to 84 months

Overview: Upgrade has a low minimum credit score of just 620, so applicants whose credit needs some work can still qualify for a loan. However, Upgrade has interest rates as high as 35.97%, and lower interest rates are typically reserved for borrowers with good credit.

 

To help offset these higher rates, consumers can apply with a co-applicant to secure lower interest rates, or they can take out a secured loan with Upgrade.

 

Borrowers will want to keep in mind that they may have to pay Upgrade an origination fee (1.85% - 8.00% of your loan amount) as well as late fees.

 

Key facts:

 

  • While Upgrade doesn’t specify the amount, this lender offers a discount to borrowers who sign up for autopay.
  • Unlike some no-fee lenders, Upgrade charges borrowers an origination fee — 1.85% - 8.00% of the total balance of your loan. Upgrade also charges late fees if monthly payments are more than 15 days late.
  • Upgrade provides funds quickly to borrowers after they’ve been approved for a personal loan. You may receive your money within one business day after approval.
ProsCons

  May receive funds within one business day of approval

  Offers secured loans as an option

  Provides autopay discount

  Charges an origination fee (1.85% - 8.00%)

  May be charged a late fee after 15 days of a missed payment

  High interest rates (up to 35.97%)

By clicking “See Personal Loan Offers,” you may or may not be matched with any lender mentioned in this article. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.

What is a cosigner?

A cosigner is a second person who signs a loan agreement, taking equal legal responsibility for repaying the loan.

Using a cosigner can make it much easier for the original borrower to qualify for a loan because, in the eyes of lenders, a second person agreeing to take ownership of the loan lessens the risk of lending to that individual.

If the original borrower is unable to repay the loan, the lender can try to collect from the cosigner.

Cosigner vs. co-borrower

The terms cosigner and co-borrower are sometimes used interchangeably, but there are important legal distinctions to keep in mind.

Co-borrowers have a right to access the funds or assets that are borrowed, while a cosigner does not. For instance, if you’re a student, and one of your parents cosigned a loan to cover your school expenses, your parent does not have the right to access the funds you borrowed.

On the other hand, if you take out a personal loan to pay for a kitchen remodel and your spouse is the co-borrower, he or she has an equal right to access the funds from the loan. Your spouse is also equally on the hook for any missed payments or if you default on the loan.

What are the risks of using a cosigner?

Before you decide to cosign a personal loan, it’s important to evaluate the downsides of choosing this route. Here’s what you need to know about the risks of using a co-applicant on a loan:

  • If the loan is not repaid, both parties are held equally responsible for the debt. This means that missed payments can impact both of your credit scores. The lender may also transfer your debt to a collection service, which may sue one or both of you in order to secure repayment.
  • When applying for a loan, lenders often run a hard-credit inquiry on your credit profile. This can put a small dent in both the original borrower’s and co-applicant’s credit scores.
  • Cosigning or co-borrowing for a loan can also increase your debt-to-income ratio, which may make it more challenging to secure other forms of credit down the road.
  • If you have trouble repaying a loan, financial repercussions may not be the only fallout. Your relationship to your co-applicant may suffer, as well.

How to compare personal loans if you have a cosigner

Applying for a personal loan with a cosigner comes with its own set of hoops you’ll need to jump through along with your co-applicant. Here’s what you should consider before applying for a loan:

  • Cosigner qualifications: You’ll have certain criteria you’ll need to meet as a borrower, and your cosigner will also have to fit these qualifications. This may include income, credit score, credit history and where they live (some lenders may require that your co-applicant live at the same address as you).
  • Application timeline: If you use a cosigner or co-borrower, this may add extra time to the application process since your lender won’t just be evaluating you for a personal loan, but your co-applicant, as well.
  • Cosigner release: In some cases, lenders may offer you the opportunity to release your cosigner from your loan contract after a certain period of time. There may be other requirements involved in cosigner release, such as having a history of on-time payments. Many lenders don’t offer cosigner release, however, so be sure to read the fine print of any loan you sign for. If you want to release your cosigner from the terms of your personal loan, you may have to consider refinancing instead.
  • Interest rates, terms, fees and amounts: Like applying as an individual, it’s also important to review and compare important details such as interest rates, terms, fees and amounts. You can shop for lenders on LendingTree’s personal loan marketplace.

How to apply for a personal loan with a cosigner

Applying for a personal loan with a cosigner isn’t much different than applying for one by yourself, though the process may take a little longer and you may need to make some extra considerations.

Check your credit scores

Knowing your credit scores ahead of time can guide you on which lenders you may or may not qualify with. It can also give you an idea of what kind of interest rate you may qualify for. If your cosigner has a good credit score, you may qualify for lower rates.

Prepare your documents

During the loan application process, lenders will want to verify your information. To help speed up the process, it may be helpful to prepare those documents ahead of time. A few items you may need offer for both applicants include:

  • A government-issued identification (driver’s license, passport or birth certificate)
  • Proof of income (W-2s or pay stubs)
  • Proof of residence (your rental or mortgage loan agreement)

Compare lenders

Securing the lowest interest rates and fees is an important aspect of shopping around for a personal loan. Before submitting an application, check which lenders offer the opportunity to prequalify for a loan. This can allow you to check what rates you may be eligible for without hurting your credit score.

Fill out an application

Once you find a lender that best fits your needs, you’ll formally apply and submit to a hard-credit pull, which can temporarily lower your credit score. Once you’re officially approved and you sign your loan contract, you will receive your loan funds in the form of a lump sum.

Frequently asked questions

Credit score requirements vary from lender to lender. In general, it is wise to have a cosigner with at least a credit score of 670 or higher. This can make it easier to not only get approved for a personal loan but also receive better offers that can save you money and offer you financial flexibility.

If your cosigner has a good credit score and a history of repaying debts on time, it may be easier for you to get approved for a loan. This is because including a co-applicant lowers the lender’s risk when offering you a loan, since it can hold two people accountable for repayment instead of just one.

Loans with a cosigner may be a good route if you are in need of a personal loan but don’t have a good credit score, need a large amount of money or want to receive a lower interest rate. A co-applicant with a solid credit score and history can make it easier to achieve those financial goals. If you’re unable to find a cosigner, you may also want to consider bad credit loans.

If you’re unable to repay a personal loan that you took out with a cosigner, both your and your cosigner’s credit scores can be impacted. Because both of you are legally responsible for the repayment of the loan, your lender can require that either you or your cosigner pay.

If your co-applicant can afford it, they may have to make those payments until the loan is paid off. If they’re unable to repay the loan, you both may default on the loan. In this case, your loan may be sent to a debt collector that may attempt to collect it or sue you both.

How we chose the best personal loans with cosigners

We looked at 12 lenders that offer personal loan services to determine the six best lenders for borrowers with cosigners or co-borrowers. By offering a detailed and objective account of each lender’s rates and terms, LendingTree’s goal is to provide you with all the information you need to make a financially sound decision specific to your situation.

Here are the criteria we used to choose the best personal loans that allow for a cosigner:

  • Allows for either a cosigner or co-borrower
  • Transparent rates and repayment terms
  • Flexible loan amounts
  • Low fees