Personal Loans

Best Personal Loans That Allow for a Cosigner

Cosigner for Personal Loans

Need money to pay for an unexpected car repair? Or maybe you need quick cash to cover a big medical bill. A personal loan might be an option if you don’t want to run up your credit card debt to cover the expense.

The challenge? If your three-digit credit score is too low, many lenders will hesitate to approve you for a personal loan. A low credit score could indicate that you have struggled in the past to pay your bills on time or manage your debt. Lenders worry that if your score is low, you’ll be more likely to miss the payments on your personal loan.

Lenders will vary in what credit scores they require. But Marcus by Goldman Sachs®, a lender of personal loans, states your FICO® Score should be 660 or higher if you want to qualify for a personal loan through Goldman Sachs Bank USA.

What if your credit score isn’t high enough? A cosigner can help.

A cosigner on a personal loan agrees to make your payments should you fail to do so. Having a cosigner — someone with a strong credit score — makes lenders less nervous about giving you a personal loan if your credit isn’t great. If you don’t make your payments, they’ll receive them from your cosigner.

Getting a cosigner might not be easy. Cosigners take on significant risk. If you should default on your loan payments, not only is your cosigner responsible for making them, this person could see their credit score fall, too.

If you do find a cosigner? Below are lenders that accept cosigners. We look at the pluses and minuses of taking out personal loans with these lenders.

LendingTree

If you want to conduct a wider search, LendingTree can help you compare up to five personal loan offers from lenders across the country. You’ll find many that will work with borrowers with bad credit if these consumers can find a cosigner.

See Personal Loan Offers

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.

LightStream

LightStream, a division of SunTrust Bank, offers personal loans with APRs ranging from 4.99% to 16.79%* if you sign up for the lender’s autopay feature. You can apply for loans from $5,000 to $100,000 with terms ranging from 24 to 144 months. LightStream does not charge any origination fees for its loans.

The fine print

  • LightStream’s flexible term lengths give you the opportunity to determine how big your monthly payment will be. If you select a shorter term, such as 24 months, your payment will be larger. If you choose a longer term, such as 144 months, it will be shorter, because you’ll be stretching out your repayment over a longer period of time.
  • Depending on the strength of your credit, it is possible to qualify for a LightStream loan with a solid interest rate. That low-end APR of 4.99%* is attractive.
  • LightStream does not charge an origination fee, meaning you won’t have to spend any money upfront 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 are considering a cosigner, you might not qualify for the lower end of interest rates that LightStream offers.
  • If you take out a LightStream loan with a longer term, say 100 months or more, you’ll pay more interest over time. The longer your loan term, the more you’ll spend on interest when repaying.

Pros

  • You might qualify for a low interest rate
  • No origination fees
  • No prepayment fees

Cons

  • You might have a higher APR closer to 16.79%* depending on your creditworthiness
  • You can take out a longer-term loan, but you will pay more interest when you do

See Personal Loan Offers

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

LendingClub is another online source for personal loans. You can apply for loans up to $40,000 with APRs ranging from 6.95% to 35.89%, depending on the strength of your credit.

The fine print

  • If you need money quickly, LendingClub is a good option. According to the company, it can close your loan and deposit your money in your bank account in as little as seven days.
  • If you pay off your LendingClub loan early, before its term ends, you won’t be hit with any prepayment fees.
  • Checking your interest rate won’t hurt your credit score. When you first apply, LendingClub will do what is known as a soft inquiry to check your credit. This inquiry won’t negatively affect your score. If, after LendingClub tells you what your loan’s interest rate will be, you close the loan, that will affect your credit.
  • LendingClub charges a one-time origination fee of 1.00% - 6.00% of your loan amount. This fee is deducted from your loan amount.
  • Making a payment on a LendingClub loan is free if you set up automatic payments from your bank account. LendingClub, though, might levy a fee of $7 every time you make a payment by check.
  • If you make your payment more than 15 days late, LendingClub might charge a late payment fee of 5% of your unpaid payment or $15, whichever amount is greater.

Pros

  • Fast approvals
  • No prepayment fees
  • Checking interest rate doesn’t hurt credit

Cons

  • Origination fee
  • Check-processing fee
  • Late fees

See Personal Loan Offers

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

You can apply for personal loans at OneMain Financial for between $1,500 and $20,000. APRs range from 18.00% to 35.99%. You can apply for a loan with a term of 24 to 60 months.

The fine print

  • On its site, OneMain Financial states that you’ll receive your funds within a day of applying for your personal loan.
  • OneMain Financial does not charge a prepayment fee.
  • To apply for a personal loan here, you’ll first complete an online application. If you are approved, you’ll then have to visit a branch of OneMain Financial in person to verify your income, identity, expenses and employment.
  • The interest rates that OneMain Financial are fairly high, with the lowest possible APR being 18.00%¹.
  • OneMain Financial does charge origination fees for its personal loans. These loans vary by state, so you’ll have to check with the bank when you are applying.

Pros

  • Fast approvals
  • No prepayment penalties

Cons

  • Requires an in-person visit
  • Higher interest rates
  • Origination fee

See Personal Loan Offers

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.

Santander Bank

You can take out a personal loan between $5,000 and $50,000 from Santander Bank, with a term ranging from 24 to 60 months. Santander Bank will review your credit score, debts and income to determine if you qualify. APRs on Santander personal loans range from 6.99% to 16.99%.

The fine print

  • Santander Bank does not charge origination or application fees.
  • You can pay off your Santander Bank personal loan early without worry. The bank does not charge prepayment penalties or fees.
  • You can borrow a small amount or a large sum through Santander Bank. If you need just a small amount of cash, you can apply for a loan as small as $5,000. If you need more, you can apply for as much as $50,000.
  • To qualify for Santander Bank’s lowest APR of 6.99%, you’ll need to have strong credit and pay through automatic payments from your bank account. If your credit is weaker, you might face a far higher APR, such as 16.99%.
  • Because Santander Bank only offers personal loans up to $50,000, this bank might not be an option if you need to borrow particularly large sums of money.

Pros

  • No origination fees
  • No prepayment fees
  • Flexible loan amounts

Cons

  • Possibility for higher interest rates
  • Not a good option for larger loan amounts

First Midwest Bank

You can borrow up to $25,000 with a personal loan from First Midwest Bank, but there isn’t as much flexibility in loan amounts as with other lenders. You can take out loans in amounts between $5,000 and $25,000, with an APR that varies according to your loan amount.

The fine print

  • The personal loans offered by First Midwest Bank come with lower interest rates. It’s possible, for instance, to qualify for a $25,000 personal loan with a Not specified-month term with an APR of 6.65%.
  • It doesn’t take long to apply for loans here. You can apply online and receive a decision in 24 hours, according to First Midwest Bank’s homepage.
  • First Midwest does not charge an origination fee. But it does charge a documentation fee of $100 for new personal loans.
  • You must live in Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Massachusetts, Maine, Minnesota, Missouri, North Carolina, Nebraska, New Hampshire, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Virginia, Vermont or Wisconsin to apply for a personal loan with First Midwest Bank.

Pros

  • Fast decisions
  • Low possible interest rates

Cons

  • Documentation fee
  • Doesn’t loan in all states

Rates and fees mentioned in this piece are accurate as of the date of publishing. Institutions had to be in DepositAccounts’ list of largest banks and credit unions by assets to be considered. (Disclosure: DepositAccounts is owned by LendingTree.) APR, terms, origination fee and other factors were considered.

*Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates without AutoPay may be 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 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.

¹Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. The lowest APR shown represents the 10% of loans with the most favorable APR. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $7,500. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

By clicking “Get Started”, 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.

 

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