6 Personal Loans With a Cosigner in 2024

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

Debt Consolidation

Home Improvement

Home Buying

Major Purchase

Other
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How Does LendingTree Get Paid?

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 July 26, 2024

LendingClub: Best for debt consolidation loans with a cosigner

8.98% - 35.99%

$1,000 - $40,000

24 to 60 months

3.00% - 8.00%

600

Pros

  • Low credit score requirement
  • Provides direct funding to former lenders
  • Option to prequalify for a loan

Cons

  • Charges an origination fee of 3.00% - 8.00%
  • Charges high maximum APRs
  • Charges late fees

What to know

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LendingClub offers joint loans to applicants who may not qualify for a personal loan otherwise. If you take out a debt consolidation loan, LendingClub provides direct payments to your former lenders.

However, LendingClub’s APR can run high, and when you take out a loan, you’ll have to pay an origination fee — 3.00% - 8.00% of the total balance of your loan.

Key facts

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  • If you pay off your loan before its term ends, LendingClub won’t charge you 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% - 8.00% 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.
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LightStream: Best for large cosigner loans

6.99% - 25.49% (with discounts)

$5,000 - $100,000

24 to 84 months

Loan Term Disclosure

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 $25,000 loan at 7.49% APR with a term of 3 years would result in 36 monthly payments of $777.54. © 2024 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

None

Not specified

Pros

  • Low starting interest rates
  • Doesn’t charge any fees
  • Same-day funding available

Cons

  • 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

What to know

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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. The lender also has some of the longest repayment terms and largest loan amounts on the market.

While LightStream has some of the most competitive rates on our list, consumers with poor credit or little credit experience won’t qualify. 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

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  • LightStream’s flexible term lengths allow you 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. 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 upfront to access your cash. LightStream also doesn’t charge a prepayment penalty 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.
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Navy Federal Credit Union: Best cosigner loans for military members

8.99% - 18.00%

$250 - $50,000

Up to 60 months

None

Not specified

Pros

  • Low maximum interest rate of 18.00%
  • No origination fee
  • Small borrowing minimum of just $250

Cons

  • Unclear on some personal loan qualification requirements
  • Must have military connection to be eligible
  • Charges a late fee

What to know

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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. Unlike many lenders, Navy Federal does not charge borrowers an origination fee. However, if you’re late on payments, you may be charged a late fee.

Since Navy Federal’s APR is capped at 18.00% due to federal laws, you may receive much lower rates than with other online lenders.

Key facts

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  • Similar to other credit unions, you’ll have to become a member of Navy Federal in order to receive a loan. To become a member, you, a family member or a member of your household must be connected to the armed forces, Department of Defense or National Guard.
  • 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.
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OneMain Financial: Best for secured cosigner loans

18.00% - 35.99%

$1,500 - $20,000

24 to 60 months

1.00% - 10.00% or $25 to $500

Not specified

Pros

  • May receive funds within one business day of approval
  • No prepayment penalties
  • Flexible loan terms

Cons

  • Low maximum loan amount
  • Charges high interest rates
  • Charges an origination fee

What to know

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If you want a personal loan with a co-borrower, OneMain Financial offers secured loans to increase your chances of approval. 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% of your loan amount or a $25 to $500 flat rate.

Key facts

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  • OneMain Financial states that you could receive your funds within one to two business days of approval.
  • 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 charges origination fees for its personal loans. These fees vary by state.
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SoFi: Best for fast online loans with cosigner

8.99% - 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.

$5,000 - $100,000

24 to 84 months

0.00% - 7.00% (optional)

680

Pros

  • Does not charge any required fees
  • Same day funding available
  • Provides a 0.25% autopay discount
  • High maximum loan amount

Cons

  • May have to accept origination fee for lower rates
  • Having a co-applicant can lengthen the application process
  • High minimum loan amount

What to know

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Aside from allowing co-applicants, SoFi offers personal loan borrowers a plethora of perks, including no required fees. SoFi also gives borrowers the option to accept a small origination fee (0.00% - 7.00%) in exchange for a lower APR.

Keep in mind, that a co-applicant can add a week or two to the application approval process. SoFi also offers large loan amounts (up to $100,000), so if you need a large sum, this lender may be worth considering.

*While SoFi offers loans up to $100,000, LendingTree marketplace customers may not receive offers at this maximum loan amount.

Key facts

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  • Along with LightStream, SoFi offers one of the largest ranges of loan amounts you can borrow (up to $100,000).
  • 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 offers a 0.25% discount for using autopay and a 0.25% direct deposit discount, which can help lower the overall cost of your loan.
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Upgrade: Best for cosigner loans for bad credit

8.49% - 35.99% (with discounts)

$1,000 - $50,000

24 to 84 months

1.85% - 9.99%

580

Pros

  • May receive funds within one business day of approval
  • Offers secured loans as an option
  • Provides interest rate discount

Cons

  • 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%)

What to know

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Upgrade has a low minimum credit score of just 580, so applicants whose credit needs some work can still qualify for a loan. However, Upgrade has interest rates as high as 35.99%, 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 as well as late fees.

Key facts

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  • While Upgrade doesn’t specify the amount, this lender offers a discount to borrowers who sign up for autopay.
  • Unlike lenders that offer no-fee personal loans, Upgrade charges borrowers an origination fee — 1.85% - 9.99% 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.
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Trustpilot

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.

On this page

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.