Best Personal Loans With a Cosigner in 2025

Get lower rates and better odds when you apply with a cosigner with good credit

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Written by
Lauren Clifford
Updated on: April 30, 2025

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Cosigner and co-borrower loans at a glance

First Tech Federal Credit Union: Best for saving money on interest with short-term, small co-borrower loans

7.89% - 18.00%

6 to 84 months

$500 - $50,000

Not specified

Pros
  • Save money on interest by borrowing as little as $500 (most loans start at $1,000+)
  • Terms start at six months (most loans start at 24 months)
  • Low interest rates
  • No fees
Cons
  • Need to become a member to get a loan
  • May need good or excellent credit to qualify
  • Only allows co-borrowers, not cosigners Both co-borrowers and cosigners can help you qualify for a loan and get better rates. Co-borrowers have equal right to the loan money, while cosigners don't.

What to know

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If you need to borrow a small amount of money but don’t want to pay high credit card rates, check your rates with First Tech Federal Credit Union. First Tech Federal Credit Union offers some of the shortest and smallest loans on the personal loan market. The less you borrow and the sooner you pay it back, the less money you’ll pay in interest and the cheaper your loan will be.

The only way to know if you’ll qualify for a First Tech Federal Credit Union loan is to check your rates, since First Tech Federal Credit Union doesn’t share what credit score, income or other requirements you’ll need to get a loan. You also have to become a member of First Tech Federal Credit Union Credit Union, but First Tech Federal Credit Union makes it easy — you can apply for membership at the same time you apply for your loan.

How to qualify

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You must meet at least one of the following criteria to join First Tech Federal Credit Union:

  • Employment: Work for a partnering employer
  • Family: Be related to a current First Tech Federal Credit Union member
  • Residency: Reside in Lane County, Ore.
  • Membership: Become a member of the Computer History Museum or Financial Fitness Association (First Tech Federal Credit Union may pay for your first year of membership, and you don’t have to maintain membership to keep your First Tech Federal Credit Union account)
See Personalized Results Read Our Expert Review

Laurel Road: Best for no-fee cosigner loans

8.99% - 23.25% (with autopay)

36 to 60 months

$5,000 - $45,000

Not specified

Pros
  • Allows cosigners (as opposed to the more common co-borrowers) Both co-borrowers and cosigners can help you qualify for a loan and get better rates. Co-borrowers have equal right to the loan money, while cosigners don't.
  • No fees
  • Low rates
  • 0.25% autopay discount
Cons
  • Likely need good or excellent credit to qualify
  • Need to do more paperwork if you’re borrowing more than $35,000

What to know

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Laurel Road is one of the few major lenders that allows cosigners instead of co-borrowers for personal loans. The difference? Cosigners don’t have the right to the loan money like co-borrowers do, but they’re still responsible for paying the loan back if the main borrower stops making payments.

Laurel Road loans also come with terms that keep loan costs down. There are no fees, competitive interest rates and even a discount for signing up for autopay.

But you’ll have to fill out more paperwork if you need to borrow more than $35,000. Plus, Laurel Road only offers loans up to $45,000 if you’re using the money for debt consolidation, home improvement or a major purchase. Other loans are capped at $35,000.

How to qualify

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Laurel Road doesn’t provide much insight into how it evaluates personal loan applications, but you must be at least the age of majority in your state (typically 18 or 19).

While Laurel Road doesn’t specify a minimum credit score, it does state that it’s able to offer low rates because it works with creditworthy borrowers. The lender may assess this creditworthiness by evaluating your debt-to-income ratio, employment, income and credit history.

See Personalized Results Read Our Expert Review

PenFed Credit Union: Best for small, no-fee co-borrower loans

8.99% - 17.99%

12 to 60 months

$600 - $50,000

Not specified

Pros
  • Save money with no fees, short loan terms and low rates
  • Loans start at $600 (most start at $1,000+)
  • Get money as soon as the next day
Cons
  • Need to become a member to get a loan
  • Only allows co-borrowers, not cosigners Both co-borrowers and cosigners can help you qualify for a loan and get better rates. Co-borrowers have equal right to the loan money, while cosigners don't.

What to know

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PenFed’s loans come with terms that can help you save on your co-borrower loan. PenFed lets you borrow small amounts and repay them fast, which can help you save money on interest. Plus, PenFed doesn’t charge upfront fees and has low rates. 

But like First Tech Federal Credit Union, PenFed requires that you become a member to get a loan. It’s easy to become a member, since PenFed allows you to apply for a loan and membership at the same time.

How to qualify

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To qualify for a PenFed loan, you must meet the following requirements:

  • Membership: PenFed membership (anyone can join)
  • Administrative: Open a PenFed savings account with a $5 deposit; may need to submit documents to verify your identity and income
See Personalized Results Read Our Expert Review

Prosper: Best for better approval odds with peer-to-peer co-borrower loans

8.99% - 35.99%

24 to 60 months

$2,000 - $50,000

600

Pros
  • Peer-to-peer loans can be easier to get
  • Fair credit OK
  • Competitive starting rates for excellent credit
Cons
  • Charges high rates for fair credit
  • Upfront fee of 1.00% - 9.99% on every loan
  • Loan review process can take five days
  • Only allows co-borrowers, not cosigners Both co-borrowers and cosigners can help you qualify for a loan and get better rates. Co-borrowers have equal right to the loan money, while cosigners don't.

What to know

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Prosper offers peer-to-peer loans, which can be easier to get because individuals, rather than banks or lenders, fund them. If you’re looking for a way to boost your odds of approval, applying for a peer-to-peer loan with a co-borrower is a smart strategy.

If you’re looking for a quick loan, choose another lender on this list. Prosper’s review process can take five days, which is longer than most lenders take.

How to qualify

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To get a loan with Prosper, you must meet the following requirements:

  • Age: Be 18 or older
  • Administrative: Have a U.S. bank account and Social Security number
  • Residency: Not live in Iowa or West Virginia
  • Credit score: 600+
See Personalized Results Read Our Expert Review

SoFi: Best for big online loans with a co-borrower

8.99% - 35.49% (with discounts)

SoFi Pricing Disclosure

Fixed rates from 8.99% APR to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 04/24/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. 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 above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and 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 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, 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 receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.

24 to 84 months

$5,000 - $100,000

680

Pros
  • Borrow up to $100,000 (other lenders only offer up to $50,000)
  • 0.25% autopay discount
  • No required fees
Cons
  • Need at least good credit to qualify
  • Charges high maximum interest rates
  • Only allows co-borrowers, not cosigners Both co-borrowers and cosigners can help you qualify for a loan and get better rates. Co-borrowers have equal right to the loan money, while cosigners don't.

What to know

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SoFi loans are a great option if you want to apply with a co-borrower for a large amount of money. You can borrow up to $100,000, and with no required fees and a discount for using autopay, you could save a lot of money on a large loan.

Keep in mind that applying with a co-borrower can add a week or two to the loan approval process. And if you’re looking for a small loan, consider another lender — SoFi loans start at $5,000.

How to qualify

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You must meet the requirements below to get a loan from SoFi:

  • Age: Be the age of majority in your state (typically 18)
  • Citizenship: Be a U.S. citizen, an eligible permanent resident or a non-permanent resident (a recipient of the Deferred Action for Childhood Arrivals — DACA — program or an asylum-seeker, for instance)
  • Employment: Have a job or job offer with a start date within 90 days, or have regular income from another source
  • Credit score: 680+
See Personalized Results Read Our Expert Review

Upgrade: Best for getting multiple discounts on co-borrower loans

7.99% - 35.99% (with discounts)

24 to 84 months

$1,000 - $50,000

580

Pros
  • Offers three discounts
  • Allows fair credit
  • Get money as soon as one business day
Cons
  • Charges an upfront fee of 1.85% - 9.99% on every loan
  • High rates for borrowers with fair credit
  • Only allows co-borrowers, not cosigners Both co-borrowers and cosigners can help you qualify for a loan and get better rates. Co-borrowers have equal right to the loan money, while cosigners don't.

What to know

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If you’re applying with a co-borrower to save money with lower rates, see if you can save even more with one of Upgrade’s discounts. You can get a discounted rate by signing up for autopay, putting up your car as collateral or using the money to consolidate debt.

Unlike some of the lenders on this list, Upgrade charges an upfront origination fee on every loan. Upgrade will keep this fee before sending you your loan money.

How to qualify

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To qualify for a loan through Upgrade, you must meet the requirements below:

  • Age: Be at least 18 years old (19 in some states)
  • Citizenship: Be a U.S. citizen, permanent resident or live in the U.S. with a valid visa
  • Administrative: Have a valid bank account and email address
  • Credit score: 580+
See Personalized Results Read Our Expert Review

What is a cosigner?

A cosigner is a second person who signs a loan agreement. This person has equal legal responsibility for repaying the loan. They can be a friend, family member or another trusted person. 

Lenders take on less risk when two people are responsible for repayment, so getting a personal loan with a cosigner can make it much easier to qualify. This is especially true if the cosigner has good or excellent credit. 

If the original borrower can’t pay back the loan, the lender can collect payment from the cosigner.

On this page

Cosigner vs. co-borrower

The terms cosigner and co-borrower are sometimes used interchangeably, but there are important legal differences.

Co-borrowers have the right to access the borrowed money, while cosigners don’t. But cosigners and co-borrowers are both responsible for payments, which means that missed payments will put their credit at risk.

CosignersCo-borrowers or co-applicants

 Responsible for payments

 Credit affected by late or missed payments

 Can’t access the borrowed money

 Less common for personal loans

Example: Parent cosigners don’t have the right to access student loan money marked for their child’s school expenses.

 Responsible for payments

 Credit affected by late or missed payments

 Can access borrowed money

 More common for personal loans

Example: If you and your spouse take out a home improvement loan to pay for a kitchen remodel, you can both legally access the funds at any time.

Is it better to get a co-borrower or a cosigner?

Most lenders only offer one option or the other, if they allow co-applications at all. The best way to know which option is better for you is to prequalify for a joint or cosigned loan with several lenders and choose the offer with the lowest rates and best terms for you. h

What to know about using a cosigner

Applying for a personal loan with a cosigner comes with additional hoops to jump through. Here’s what you need to know.

  • Cosigner qualifications: Most lenders require that both applicants meet their minimum eligibility requirements. Lenders will consider factors like income, credit score and credit history. Some lenders may even require that co-applicants live at the same address.
  • Application timeline: Using a cosigner or co-borrower may add extra time to the personal loan application process, since the lender will be evaluating two applicants instead of just one.
  • Cosigner release: Lenders may allow you to release your cosigner from your loan contract after a certain period of time and a history of on-time payments. If your lender doesn’t offer cosigner release, consider refinancing your loan instead.

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Risks of using a cosigner

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

 Damage to credit

Each applicant is legally responsible for the loan, so missing payments or going into default will hurt the credit of both parties.

 Legal consequences

If you stop making payments, your debt will eventually go to collections and one or both of you could be sued by a debt collector.

 Hard credit pull

Lenders typically run a hard credit inquiry when you apply for a loan. This can cause a small, temporary dip in the credit scores of both the original borrower and the cosigner.

 Harder to qualify for future loans or credit

Cosigning a loan can increase your debt-to-income ratio, which may make it difficult to take out more credit until the cosigned loan is paid off.

 Strained relationship

If you have trouble repaying a loan, financial repercussions may not be the only fallout. Your relationship with your cosigner could suffer as well.

How we chose the best personal loans with cosigners

We reviewed more than 30 lenders to determine the best six personal loans with a cosigner or co-borrower. To make our list, lenders must offer cosigner or co-borrower loans with 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.

According to our standardized rating system, the best cosigner loans come from First Tech Federal Credit Union, Laurel Road, PenFed Credit Union, Prosper, SoFi and Upgrade.

Frequently asked questions

Cosigners can help you get lower rates, more money and better odds of approval — but only if your cosigner has good or excellent credit.

Yes, adding a cosigner increases your odds of approval. Cosigners lower the lender’s risk, since two people are accountable for repayment instead of just one. If your cosigner has good credit and a reliable credit history, this can make it even easier to qualify for a loan.

The credit score you need for a personal loan depends on the lender, but aim to have a cosigner with a credit score of 670 or higher. This can make it easier not only to get approved for a personal loan but also to get better offers that can save you money.

Consider getting a personal loan with a cosigner if you want:
 

  • Better approval odds
  • A large loan
  • Lower interest rates

 
Note that your cosigner will need good or excellent credit to help you achieve these goals.

Missing payments will damage both your credit score and your cosigner’s. If neither of you make payments, your lender will eventually send your loan to a collection agency. 
 
Consider debt relief options if you’re struggling to make payments.