6 Personal Loans With a Cosigner in 2024

If you have poor or no credit, add a cosigner to improve your approval odds.

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Written by Amanda Push | Edited by Katie Lowery | Reviewed May 29, 2024

Cosigner loan lenders at a glance

LendingClub logo

LendingClub: Best for debt consolidation loans with a cosigner

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(6,928)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

APR range8.98% - 35.99%
Loan amounts$1,000 - $40,000
Loan terms24 to 60 months
Origination fee3.00% - 8.00%
Min. credit score600
ProsCons

 Low credit score requirement

 Provides direct funding to former lenders

 Option to prequalify for a loan

 Charges an origination fee of 3.00% - 8.00%

 Charges high maximum APRs

 Charges late fees

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LightStream logo

LightStream: Best for large cosigner loans

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(301)
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APR range6.99% - 25.49%* (with discounts)
Loan amounts$5,000 - $100,000**
Loan terms24 to 84 months*
Origination feeNone
Min. credit scoreNot specified
ProsCons

 Low starting interest rates

 Doesn’t charge any fees

 Same-day funding available

 No option to prequalify

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

 Consumers with low credit won’t qualify

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Navy Federal Credit Union logo #1

User ratingsUser ratings coming soon
APR range8.99% - 18.00%
Loan amounts$250 - $50,000
Loan termsUp to 60 months
Origination feeNone
Min. credit scoreNot specified
ProsCons

 Low maximum interest rate of 18.00%

 No origination fee

 Small borrowing minimum of just $250

 Charges a late fee

 Must have military connection to be eligible

 Unclear on some personal loan qualification requirements

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One Main Financial logo

OneMain Financial: Best for secured cosigner loans

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(8,105)
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APR range18.00% - 35.99%
Loan amounts$1,500 - $20,000
Loan terms24 to 60 months
Origination fee1.00% - 10.00% or $25 to $500
Min. credit scoreNot specified
ProsCons

 May receive funds within one business day of approval

 No prepayment penalties

 Flexible loan terms

 Low maximum loan amount

 Charges high interest rates

 Charges an origination fee

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SoFi logo

SoFi: Best for fast online loans with cosigner

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(97)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

APR range8.99% - 29.99% (with discounts)

Pricing Disclosure

Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

Loan amounts$5,000 - $100,000
Loan terms24 to 84 months
Origination fee0.00% - 7.00% (optional)
Min. credit score680
ProsCons

 Does not charge any required fees

 Same day funding available

 Provides a 0.25% autopay discount

 High maximum loan amount

 May have to accept origination fee for lower rates

 Having a co-applicant can lengthen the application process

 High minimum loan amount

See Your Personalized Results

Upgrade logo

Upgrade: Best for cosigner loans for bad credit

User ratings
(2,216)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

APR range8.49% - 35.99% (with discounts)
Loan amounts$1,000 - $50,000
Loan terms24 to 84 months
Origination fee1.85% - 9.99%
Min. credit score580
ProsCons

 May receive funds within one business day of approval

 Offers secured loans as an option

 Provides interest rate discount

 Charges an origination fee (1.85% - 9.99%)

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

 High interest rates (up to 35.99%)

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What is a cosigner?

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

Getting a personal loan with 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. Keep in mind, that some lenders offer co-borrower loans instead of cosigner loans and, while they sound similar, they come with several key differences.

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 home improvement 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, and one or both of you could be sued by a debt collector 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 with 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 personal loan application process since your lender won’t just be evaluating you, 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 personal loan 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 personal loan lenders on LendingTree’s 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. Platforms like LendingTree Spring can help you track your credit score.

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 to 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.

How we chose the best personal loans with cosigners

We reviewed more than 28 lenders that offer personal loans to determine the overall best six lenders. To make our list, lenders must offer competitive annual percentage rates (APRs). From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

LendingTree reviews and fact-checks our top lender picks on a monthly basis.

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.
 
If neither of you are able to repay the loan, your loan may be sent to a collection agency which will attempt to collect or sue you both if you don’t repay.