Can you get a cosigner for a personal loan

What’s the difference between a co-signer and a co-borrower?

Co-signers and co-borrowers have a similar effect on a personal loan application but different responsibilities for repaying the loan and accessing funds.

Co-signer: A co-signer vouches for someone else’s loan application and agrees to repay it if the borrower doesn’t. The co-signer can’t access the loan proceeds, nor can they see information about the loan, like how much you’ve repaid or if you missed a payment, says Massachusetts-based certified financial planner Therese Nicklas.

Co-borrower: A co-borrower is a partner applicant on a joint personal loan and shares responsibility for repayment. This person has equal access to loan funds and payment information.

When is a co-signer a good idea?

Lenders use information like your credit and income to decide whether you qualify and what your loan amount and annual percentage rate should be. Adding someone with better credit, higher income and low debt to support your application makes a lender more confident that the loan will be repaid.

A co-signer can help if:

• You have bad credit. There are personal loans for bad credit, but few lenders approve applicants with credit scores below 600. If that’s you, a co-applicant with better credit could increase your approval odds.

• You want a larger loan. Lenders offer the largest loans to well-qualified applicants, so including a co-applicant could increase the size of your loan.

• You need a lower rate. Since the APR affects your monthly payments, adding someone to the application could get you a lower rate, meaning a less expensive loan.

How much a co-signer or co-borrower helps depends on factors such as:

• The co-applicant’s credit score.

• Both your credit histories.

• Your combined debt-to-income ratio.

• The lender’s underwriting criteria.

Risks of adding a co-signer

It’s important for you and your co-applicant to understand the risks of co-signing before submitting an application. These can include:

• A hard credit check, which will temporarily lower both of your credit scores.

• Higher debt-to-income ratios for both of you, which could make it harder to access credit during the life of the loan.

• Damage to both of your credit scores if a payment is missed.

• Damage to the relationship, which could be harder to salvage than your credit.

Next steps: Check personal loan rates

Pre-qualify to see if you're approved for a loan on your own and, if so, at what rate. The pre-qualification process doesn’t affect your credit score, and you could find an affordable offer without a co-applicant.

If not, some lenders allow you to add a co-borrower during pre-qualification to give you a more accurate rate estimate. A co-signed option may only be available if you don’t get a loan offer.

Best Personal Loans With a Co-signer

FEATURED PARTNER OFFER

Best for Large Loan Amounts

SoFi

Minimum credit score

APR Range

7.99% to 23.43%

with autopay

Loan amounts

Minimum credit score

APR Range

7.99% to 23.43%

with autopay

Loan amounts

Why We Picked It

SoFi is an online lending platform that offers unsecured fixed-rate personal loans in every state except Mississippi. Founded in 2011, SoFi has extended over $50 billion in loans and stands out for allowing high loan amounts and its availability of extended loan terms.

Loans are available between $5,000 and $100,000, making SoFi a great option for those with excellent credit who need to borrow a large amount of money. Loan amounts available may vary by the state you live in. Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (minimum 680) and annual income (at least $45,000). SoFi also lets prospective borrowers submit joint applications—although co-signers are not permitted.

SoFi doesn’t charge origination fees, late fees or prepayment penalties—a stand-out feature because personal loan lenders often charge origination or late payment fees at least.

However, if you’re considering a debt consolidation loan from SoFi, keep in mind that the lender does not offer direct payment to a borrower’s other creditors. This means the loan proceeds will be deposited to your bank account and you’ll have to pay off your other lenders individually. The platform does offer customers a number of other perks and discounts, including unemployment protection and the ability to change their payment due date once a year.

Pros & Cons

• Check your rate with soft credit check
• Funding in as little as one to two days
• High loan amounts and lengthy terms may be available

• Does not offer direct payment to third-party creditors for debt consolidation
• Some applicants report difficult qualification standards
• Co-signers are not permitted

Extra Details

Eligibility: Personal loan applicants should have a minimum credit score of 650. However, many successful applicants have a score of 700 or higher. Applicants also must have an annual income of at least $45,000, though the average income of a SoFi borrower is over $100,000.

Co-borrowers must live at the same address as the primary applicant.

Loan uses: In general, SoFi personal loans are limited to use for personal, family and household purposes. This means a borrower can use loan funds to cover things like medical costs, credit card consolidation, home improvements and relocation costs. However, SoFi loans cannot be used to fund a new business venture, the purchase of real estate, investments and securities, post-secondary education or short-term bridge financing.

Turnaround time: Borrowers typically receive funds within a few days—or as soon as the next business day after approval and acceptance of terms. However, funding times may be longer than a few days, especially for loans over $20,000. If you’re applying with a co-borrower, SoFi says “the review process with a co-borrower may take an extra one to two weeks.”

FEATURED PARTNER OFFER

Best for Low Interest Rates

LightStream

Minimum credit score

APR Range

5.24% to 19.99%

with autopay

Loan amounts

Minimum credit score

APR Range

5.24% to 19.99%

with autopay

Loan amounts

Why We Picked It

LightStream is a consumer lending division of Truist—which formed following the merger of SunTrust Bank and BB&T. The platform offers unsecured personal loans from $5,000 up to $100,000. Loan amounts vary based on the loan purpose. Although a number of lenders offer smaller loans than the LightStream minimum, few lenders offer a higher maximum loan. Repayment terms are available from two to seven years, making it an excellent option for those who want to spread out the payment of large expenses over time.

In addition to offering appealing and flexible terms, LightStream charges no origination, late payment or prepayment fees. The lender also offers a 0.50% rate discount for borrowers who enroll in autopay—higher than most lenders with the same perk—as well as a 30-day loan experience guarantee to ensure borrower satisfaction, Covid-19/hardship assistance and a rate-beat program. LightStream will beat a competitor’s interest rate by 0.1% for applicants who meet certain criteria.

LightStream offers loans in all 50 states plus Washington, D.C. and Puerto Rico, and applicants can contact the lender’s customer support team seven days a week; current borrowers have access to customer support from Monday through Saturday. And, while LightStream doesn’t offer a mobile app for loan management, customers can access their account through LightStream.com.

Pros & Cons

• No origination, prepayment or late fees
• Low, competitive rates
• Fast approval and funding

• No prequalification process
• No due date flexibility
• Does not allow co-signers

Extra Details

Eligibility: LightStream recommends applicants have good to excellent credit before applying for a personal loan. Applicants also should have several years of credit history, including multiple account types, as well as an income that is stable enough to service current debts and a new LightStream loan.

LightStream doesn’t give prospective borrowers the ability to prequalify for a loan. This fact—combined with the minimum credit score requirement—makes the platform a better fit for those with a strong credit profile. Applicants with excellent credit also are more likely to get favorable terms. LightStream does not allow co-signers, but prospective borrowers can submit a joint application. Co-borrowers should meet the same minimum credit requirements.

Loan uses: LightStream’s personal loans can be used for a wide range of purposes, from purchasing a new car, RV or jewelry to paying for home improvements. However, LightStream really stands out because loans can be used to finance land, timeshares and so-called tiny homes. As with other top lenders, LightStream prohibits use of its personal loans for post-secondary education costs, business purposes and illegal activities. Borrowers also are prohibited from using LightStream loan funds to refinance an existing LightStream loan.

Turnaround time: LightStream borrowers can receive funds as soon as the same day if the loan is approved before 2:30 p.m. Eastern time on a banking business day. To receive same-day funding, the applicant also must review and electronically sign the loan agreement; provide LightStream with funding preferences and relevant banking information; and complete the final verification process—all before 2:30 p.m. on the day the loan is approved.

FEATURED PARTNER OFFER

Best for Bad Credit

Upgrade

Minimum credit score

APR range

Loan amounts

Minimum credit score

APR range

Loan amounts

Why We Picked It

Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services in every state except Iowa, Vermont and West Virginia. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services. Although maximum APRs are on the high end compared to other online lenders, Upgrade makes loans available to those with poor credit history.

Loans amounts, which start at just $1,000, are flexible but cap out at $35,000—lower than lenders that focus on lower-risk borrowers. Three- and five-year loan terms are available. Upgrade charges an origination fee between 2.9% and 8% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay.

That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.

Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.

Pros & Cons

• Low minimum credit score requirement
• Borrowers can use loans to cover business expenses
• Offers direct lender payoff for debt consolidation loans

• High APR range
• Charges fees for origination, late payment and insufficient funds
• Only offers two loan repayment periods

Extra Details

Eligibility: Prospective borrowers should have a minimum score of 580 to qualify for an Upgrade personal loan (the average borrower score is 697), making it an accessible option for those with fair credit. Furthermore, the lender does not require applicants to meet a minimum income requirement, although borrowers make $95,000 per year on average. Applicants should have a maximum pre-loan debt-to-income ratio of 45%, excluding their mortgage.

The lender also considers each applicant’s free cash flow, which demonstrates their likely ability to make consistent on-time loan payments. Ideally, applicants should have a minimum monthly cash flow of $800.

Upgrade increases loan accessibility by also allowing co-borrowers. Co-borrowers must meet the same minimum credit score requirements, be at least 18 years old and have U.S. citizenship; they do not need to live at the same address as the primary borrower.

Loan uses: As with most other personal loans, loans from Upgrade must be used to pay off credit cards, consolidate other debt, make home improvements or pay for other large purchases. However, Upgrade stands out from some lenders by allowing borrowers to use personal loan funds to cover business expenses. What’s more, Upgrade will directly pay off third-party lenders, making debt consolidation more convenient than with some competing lenders.

There are no specific prohibitions on the use of Upgrade loans other than those already imposed by law.

Turnaround time: Once an Upgrade loan is approved, it generally takes up to four business days for a borrower to receive the funds. However, if Upgrade is directly paying off a borrower’s loans to a third-party lender, it can take up to two weeks for the funds to clear.

FEATURED PARTNER OFFER

Best for Credit Scores As Low As 600

Prosper

Minimum credit score

APR range

Loan amounts

Minimum credit score

APR range

Loan amounts

Why We Picked It

Prosper is a peer-to-peer lending platform that was founded in 2005. It offers flexible personal loan amounts ($2,000 to $50,000) and somewhat accessible borrower qualifications. The platform also offers a prequalification process so you can see what rates you’ll qualify for without damaging your credit. What’s more, borrowers can receive their money in as few as three days after accepting a loan offer, so you’re more likely to get loan proceeds when you need them.

Loans are available for three- or five-year terms and APRs range from 7.95% to 35.99%, with the lowest rates reserved for the most creditworthy borrowers. These aren’t the lowest rates you’ll encounter in the personal loan space, but Prosper may still be a good choice if you’re in a pinch.

Prosper loans also include origination fees ranging from 2.4% to 5% of the total loan amount, and borrowers are charged a late fee of the greater of $15 or 5% of the unpaid loan amount; there is also an insufficient funds fee of $15 per instance. Even so, there are no prepayment penalties, so you can pay off your loan as soon as you’re able without incurring extra costs.

Pros & Cons

• Flexible loan amounts
• Accessible minimum credit score
• Funding in as few as three days

• Charges origination fees and late fees
• Only available for three- and five-year terms
• High maximum APR

Extra Details

Eligibility: To qualify for a Prosper personal loan, applicants should have fair credit (a minimum credit score of 600)—although the average score of approved borrowers is 717. Applicants also should have a minimum credit history of two years (11 years, on average), as well as a maximum debt-to-income ratio of 50%, excluding mortgages. Prosper doesn’t impose a minimum income requirement, but the average borrower has an income of $89,000. What’s more, co-applicants and co-signers are permitted, so you may be able to qualify even with a weak credit history.

Loan uses: Prosper personal loans can be used for a range of purposes, including debt consolidation. However, in the case of an emergency, the most beneficial uses of a Prosper loan is perhaps for unexpected home repair costs, medical and dental expenses and auto-related expenses. As with many other lenders, Prosper personal loans cannot be used for postsecondary education expenses.

FEATURED PARTNER OFFER

Best for Existing U.S. Bank Customers

U.S. Bank

Minimum credit score

APR range

7.75% to 20.24%

with autopay

Loan amounts

Minimum credit score

APR range

7.75% to 20.24%

with autopay

Loan amounts

Why We Picked It

With a U.S. Bank personal loan you can gain quick access to funds for your one-time financing needs, whether that is consolidating your debt or covering a large expense. U.S Bank offers unsecured personal loans ranging from $1,000 to $25,000 to existing U.S. Bank customers. Loan terms run between 12 and 60 months.

U.S. Bank’s loans carry low interest rates depending on your creditworthiness, which includes a 0.50% autopay discount. Borrowers with higher credit scores are more likely to qualify for interest rates on the low end of the spectrum. Similar to other top providers, U.S. Bank charges no origination fees, and there is no prepayment penalty, meaning you can always make loan payments before they are due.

Applying for a U.S. Bank loan is easy and can be done online; however, you must be a current U.S. Bank customer. Some customers may need to visit a U.S. Bank branch if additional information or documentation is required.

Pros & Cons

• Funding only takes one business day
• Autopay enrollees can receive a 0.50% discount on interest
• No origination fees or prepayment penalty

• Only available in 26 states
• Some applicants may need to visit a branch to close their loan
• Only offers small loan limits up to $25,000

Extra Details

Eligibility: U.S. Bank requires applicants and co-borrowers to be an existing U.S. Bank customer for at least 120 days. If you’re a current customer, you can qualify for a personal loan with a minimum credit score of 680. This requirement also applies to secondary borrowers on a joint personal loan.

When applying for a joint personal loan, you’ll need to sign in person, so you and the co-borrower must live near a physical location. U.S Bank has branches in 26 states, including Arkansas, Arizona, California, Colorado, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Minnesota, Missouri, Montana, North Carolina, North Dakota, Nebraska, New Mexico, Nevada, Ohio, Oregon, South Dakota, Tennessee, Utah, Washington, Wisconsin and Wyoming.

Loan uses: U.S. Bank’s personal loans can be used for any purchase or product besides a home or education expenses. For example, they can cover vacation costs, home improvements and medical bills or help consolidate any debt obligations, like credit cards.

Turnaround time: An applicant typically will learn their loan approval status in less than a minute. If you qualify for the personal loan, you may fund your loan online; however, you may need to visit a branch if a U.S. Bank representative needs more information. After your loan closes, funds are available within one business day.

FEATURED PARTNER OFFER

Best for Current Wells Fargo Users

Wells Fargo

Minimum credit score

670+

No minimum recommended score reported by lender.

APR range

5.74% to 20.99%

with autopay

Loan amounts

Minimum credit score

670+

No minimum recommended score reported by lender.

APR range

5.74% to 20.99%

with autopay

Loan amounts

Why We Picked It

Wells Fargo offers fixed-rate personal loans with limits between $3,000 and $100,000 and repayment terms from 12 to 84 months. While longer term lengths, such as 84 months, will decrease your fixed monthly payment, you will pay more interest over the life of your loan compared to a loan with terms of, let’s say, 12 months.

Wells Fargo personal loans boast interest rates between 5.99% to 24.49%, not including a 0.25% relationship discount for customers who qualify. To qualify, you need to have a Wells Fargo checking account and make automatic payments from a Wells Fargo deposit account. While Wells Fargo doesn’t publish a minimum credit score requirement, maintaining a score of at least 700 is generally recommended for favorable interest rates.

Although Wells Fargo is available to anyone in the United States, only current Wells Fargo customers will be able to apply online. New customers will need to visit a branch location. Wells Fargo has branch locations in every state besides Indiana, Kentucky, Louisiana, Ohio, Oklahoma, Maine, Massachusetts, Michigan, Missouri, New Hampshire, Vermont and West Virginia.

Pros & Cons

• Receive funds the next business day, if approved
• 0.25% discount when you enroll in autopay
• No origination fees or prepayment penalty

• Must have a Wells Fargo checking account to receive 0.25% discount
• New Wells Fargo customers will need to visit a branch to apply
• No option to prequalify

Extra Details

Eligibility: Wells Fargo personal loans are available for both existing and new Wells Fargo customers. Existing customers can apply online, while new customers must visit a branch location. Although Wells Fargo doesn’t publish a minimum credit score requirement, it’s a good rule of thumb to maintain a score of at least 700 to increase your chances of receiving a personal loan.

While Wells Fargo does not permit co-signers, it does allow for co-borrowers. Co-borrowers should follow the same credit score guidance, and they do not need to live at the same address as the primary borrower.

Loan uses: You can use Wells Fargo personal loans for any type of purchase besides a home and education expenses. For example, you can consolidate your debt, finance purchases like new appliances or furniture, fund renovations and cover expenses, such as medical bills and auto repairs.

Turnaround time: Wells Fargo offers a simple and quick application process for existing customers. If you submit an application online, you’ll receive an instant approval response. Once approved, you can typically receive your funds by the next business day.

Methodology

We reviewed 18 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose lenders that allow for co-signers or co-borrowers and ranked them based on the weighting assigned to each category:

• Loan cost: 35%
• Loan details: 20%
• Eligibility and accessibility: 20%
• Customer experience: 15%
• Application process: 10%

Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

Tips for Comparing Personal Loans With a Co-signer

Anytime you need new financing, it’s important to shop around and compare available offers. Taking the time to find the best personal loan could save you hundreds or even thousands of dollars in interest over the life of the loan. There are several important details to compare when you’re loan shopping, including:

• Co-signer qualification requirements. Because lenders consider the co-signer’s information, they must meet the minimum credit score requirement. If your co-signer has a qualifying score and sufficient income, you may be able to receive more favorable terms, like lower interest rates.
• If possible, prequalify. Several lenders offer the opportunity to prequalify for a personal loan. This means you can submit details like your income information, desired loan use, housing situation and other information before viewing estimated interest rates and loan amounts you could qualify for. Prequalification also only requires a soft credit check, which doesn’t hurt your credit score, so you can safely find the best rates.
• Check for additional fees. Some personal loan providers charge no origination fees, late payment fees or prepayment penalties. However, others may charge all or some of these fees. When comparing personal loans, be sure to look at the fee structure beyond the potential interest rate you can receive.
• Evaluate the lender’s customer support options. If you’ve found a lender, there’s one more thing to consider before signing the loan agreement. While customer support may not seem like a big deal, it can make a huge difference if you encounter issues with payments or face a financial hardship during your repayment period. Review the lender’s customer service resources and read reviews to make sure it’s a good fit.

What Is a Co-signer?

A co-signer is someone who agrees to repay a debt to a lender if the primary borrower fails to do so. Having a co-signer on a loan can benefit you (the borrower) and the lender. However, because the co-signer may become responsible for repayment, they take on a considerable amount of risk.

Co-signer vs. Co-borrower

People sometimes use the terms co-signer and co-borrower interchangeably, when there are meaningful differences between the two.

Co-signers don’t have any claim to the loan proceeds and only become responsible for repayment if the primary borrower fails to do so. Co-borrowers, on the other hand, are able to access the funds from a loan or the asset purchased with the loan and are equally responsible for repayment as the primary borrower.

When to Use a Co-signer vs. Co-borrower

You may want to consider using a co-signer if you cannot qualify for financing yourself. Or if you can qualify but the lender offers you a high interest rate due to damaged credit, adding a well-qualified co-signer might help you lock in a lower interest rate.

If you’re planning to buy an asset that you’ll share with someone else, like a house or vehicle, applying with a co-borrower could be helpful. With big-ticket loans like mortgages, you might need to apply together in order to qualify for a large enough loan amount to purchase the type of home you’re interested in buying.

Just keep in mind that there can be significant risks involved with both co-signing and co-borrowing. Therefore it’s crucial to consider the pros and cons before you apply for any type of financing with someone else.

How to Apply for Personal Loans With a Co-signer

The process of applying for a personal loan may vary slightly depending on the lender you choose. Below are four general steps you may need to take to apply for a personal loan with a co-signer.

1. Check Your Credit

Before you start filling out loan applications or even researching available personal loans, it’s a good idea to know where you stand. The condition of your credit can determine the types of loans for which you can qualify—with or without a co-signer. It can help to know the condition of your co-signer’s credit, too.

2. Prepare Your Documents

Applying for a personal loan, especially with an online lender, isn’t usually a document-intensive process. But you and your co-signer might want to have copies of a few items ready in case the lender requests them, such as:

• Driver’s licenses or other identification
• Social Security numbers
• Bank statements
• Paystubs
• W-2 forms

3. Find the Right Lender

Once you understand the condition of your credit, you can start loan shopping. As you begin the loan comparison process, you may even find lenders who offer you the chance to prequalify.

When you go through a prequalification process, a lender can let you know whether you’re eligible for a personal loan and the type of interest rate it might offer you. These steps occur before you fill out an official loan application. Furthermore, you may be able to find out if you prequalify with only a soft credit inquiry that doesn’t damage your credit score.

Note that you can use a personal loan calculator during the loan shopping process. This can make it easier to estimate monthly payments and compare different loan products.

4. Submit Your Application

After you complete your research and settle on a lender, it’s time to submit an official loan application. You and your co-signer will need to provide a number of personal details at this point in the process, from your name and personal identifying details to information about employment, income and existing debts.

You’ll also both need to agree to let the lender check your credit. These credit checks typically result in a hard inquiry. Hard inquiries temporarily drop your credit score, but usually not by much. According to FICO, most people see a credit score drop of less than five points when one additional hard inquiry appears on their credit report.

Best Personal Loans With A Cosigner Ratings

Frequently Asked Questions (FAQs)

Is it easy to get a personal loan with a co-signer?

Having a co-signer with good credit or additional income might help you qualify for a personal loan when you can’t get one on your own. Most lenders that accept co-signers try to make the application process easy to navigate.

Can you get a loan with bad credit with a co-signer?

Depending on your situation, you may be able to qualify for a bad credit personal loan on your own. But if you’re unable to meet a lender’s qualification requirements or you want to secure a lower interest rate, a co-signer with good credit might help you overcome these obstacles.

What credit score does a co-signer need for a personal loan?

Lenders have different personal loan requirements when it comes to the credit score you need to qualify for financing. Many lenders want to see a minimum credit score of at least 600. But a score of at least 670 is considered to be a good credit score and may open more borrowing opportunities and lower interest rates.

Next Up in Personal Loans

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

Can I get a personal loan with co

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