Compare lenders that accept cosigners for personal loans | Apply today

Compare lenders that accept cosigners for personal loans

Having trouble getting a personal loan or qualifying for a good rate on your own? You may be in luck.

Getting your first car or starting college can be more than exciting. It can also be extremely frustrating if you don’t have much credit history. If you can’t afford to make a big purchase outright and your credit is nonexistent or less than perfect, you may be considering a cosigner.

Some of the roadblocks to getting a personal loan can be made more manageable with the addition of a cosigner. You can meet minimum requirements while also potentially getting better rates. A small stumble in your credit history doesn’t have to hold you back.

LendingClub Personal Loan

Top personal loan with cosigner: LendingClub

LendingClub offers loans of up to $40,000 as an alternative to bank loans. Rates from 5.98%–35.89% APR based on your and your cosigner's credit history.

  • Recommended Credit Score: 660 or higher
  • Min. Loan Amount: $1,000
  • Max. Loan Amount: $40,000
  • Loan Term: 3 to 5 years
  • Turnaround Time: Up to 7 days
  • Total Costs: Depends on your credit score
  • Consolidate loans or pay off high interest debt
  • Confidential and secure online application

    Compare top cosigner loans

    Rates last updated April 25th, 2018

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    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Min. Credit Score Max. Loan Amount APR
    LendingClub Personal Loan
    A peer-to-peer lender offering fair rates based on your credit score.
    660
    $40,000
    5.98%–35.89% (fixed)
    FreedomPlus Personal Loans
    Consolidate debt and more with these low-interest loans. Cosigners welcome.
    640
    $35,000
    4.99%–29.99% (fixed)
    OneMain Financial Personal and Auto Loans
    An established online and in-store lender with quick turnaround times. Poor credit is OK.
    Varies
    $25,000
    typically around 18.49%* (fixed)

    Compare up to 4 providers

    How does getting a personal loan with a cosigner work?

    Simply put, a cosigner is someone who agrees to pay back your loan if you miss payments or default on it. Rather than relying on your credit history and score alone, creditors can take your cosigner’s financial history into account.

    The addition of a cosigner reduces risk for lenders, as long as your cosigner has solid creditworthiness. Because a cosigner is intended to act as a guarantee against lost, lenders will consider your cosigner’s finances just as thoroughly as they investigate yours.

    How does a cosigner differ from a guarantor?

    Guarantor is a term you more often see associated with apartments or rentals, where only the primary applicant is living at the residence. It can be applied to loans as well.

    Cosigners and guarantors differ, however. Cosigners are just as liable as you are for the loan from the get-go, whereas a guarantor is liable only after you default on the loan.

    Is a cosigner different from a joint application?

    In some cases, yes. The two are similar in that both put responsibility on the person who is applying with you. Joint applicants and cosigners are both fully liable for the loan on issue — the same as the borrower.

    However, the two differ in that “joint” implies a level of ownership by the coapplicant over the disbursed funds and what’s purchased with it.

    What are lenders’ conditions for cosigners?

    LenderWhich loans can you apply for with a cosigner?What are the conditions?
    LendingClubAll borrowing reasonsThe lender will consider both of your qualifications, including but not limited to, credit scores, income, debt-to-income (DTI) ratio and credit history. You and the cosigner will be equally responsible for repaying the loan
    OneMain FinancialSecured and unsecured personal loansIf the main applicant relies on another person’s income, that person must be listed as a cosigner and assume responsibility for loan repayments with the main applicant.
    FreedomPlusAll borrowing reasonsThe lender considers two incomes, lowering your debt-to-income ratio and ultimately your assessed risk to the lender. Both applicants agree to apply for joint credit.
    Bank of AmericaAuto refinanceYour cosigner must provide all of the same financial information as you on application, including: W-2s, tax returns, recent pay stubs and bank statements.
    Chase BankAuto loansThe cosigner must provide the same required documentation when applying. The cosigner acknowledges and assumes equal responsibilities.
    Wells Fargo BankAuto loans, home equity financeThe cosigner can be a spouse, partner, relative, family friend or another who shares the loan responsibility.

    Is it easier to get a loan with a cosigner?

    It depends. The reason a cosigner can be effective is that they minimize risk for the lender. If your cosigner doesn’t minimize risk — if they have a poor credit score or a rocky financial history — they may not make the approval process any easier.

    On the other hand, if they have stellar credit, they may eliminate some of the risk for the lender. That reduction of risk can then potentially increase the odds of you being accepted for a loan and even get you a better rate that you would’ve been offered otherwise.

    Cosigner requirements

    While eligibility varies based on the lender, a few qualifications tend to be universal:

    • Must be 18 years of age or older (19 in Alabama)
    • Must have an established credit history
    • Must demonstrate an ability to repay the loan through regular income and low debt-to-income ratio

    How to apply for a loan with a cosigner

    • Compare your options. You can start by reviewing the lenders listed in the table above. Keep in mind that lenders may not accept cosigners for all of its loan types. Be sure that the loan type you’re interest in applying for is eligible for cosigners.
    • Prepare your financial documents. Both you and your cosigner should have the documents required by the lender. These can include W-2s, bank statements and employment information.
    • Apply together online. If the person who’s agreed to be your cosigner is available, consider having them there with you when you apply online. It can ease the process in case any specific application questions are asked that you’re unsure of.

    3 important questions to help make this a smart choice

    Cosigning a loan is a big responsibility. If you don’t make your payments or default, your cosigner is on the hook for paying back what you borrowed. Unpaid debt can cause strain on a relationship. So before you borrow, be sure to ask some important questions about your financial situation and ability to repay the loan.

    • What is the loan for?
      Your cosigner will likely want to know why you’re taking out a loan. Financing a vacation is much different than consolidating your debt, and you’ll need to be clear with your cosigner before you apply.
    • How much are you borrowing?
      A small loan is easier to repay than a large loan. A lower amount is more attractive to a cosigner because you’re less likely to face default and if you do, they’ll be on the hook for less money.
    • How often will payments need to be made?
      Knowing how often you’ll need to pay down your debt is important. Most lenders require monthly payments and give you the option to make additional payments at no cost. This can impact your cosigner since they’ll have to pay if you don’t, so be sure you can make regular payments.

    Compare cosigner loans now

    What a cosigner means for different loan types

    Different loan types attract different meanings for cosigners when it comes to what you’re financing.

    • Implication for personal loans

    When a person cosigns with you for a personal loan, they assume liability for the loan but aren’t entitled to any of the funds.

    • Implication for auto loans

    The benefits as a cosigner for an auto loan are limited. If they’re not listed on the title, they don’t have any ownership. Being listed on the title takes the individual from cosigner to joint applicant.

    • Implication for student loans

    Cosigners are common on student loans because parents often agree to be legally responsible for their child’s loan payments. Since young students may not have established credit history, a parent cosigner can help them borrow the amount they need to pay for school.

    • Implication for mortgages

    Like an auto loan, unless the cosigner is listed on the property title, they aren’t a co-owner of the property. Should you default on your mortgage, the property is security for the loan. The cosigner isn’t transferred any type of ownership.

    • Implication for business loans

    For business loans — especially for riskier businesses — cosigners may be asked to provide collateral. Even in this case, the cosigner doesn’t hold any ownership of the business due to the loan.

    3 important questions to help make this a smart choice

    Cosigning a loan is a big responsibility. If you don’t make your payments or default, your cosigner is on the hook for paying back what you borrowed. Unpaid debt can cause strain on a relationship, so before you borrow, be sure you ask some important questions about your financial situation and ability to repay the loan.

    • What is the loan for?
      Your cosigner will need to know why you’re taking out a loan. Financing a vacation is much different than consolidating your debt, and you’ll need to be clear with your cosigner before you apply.
    • How much is being borrowed?
      A small loan is much easier to repay than a large loan. A lower amount is more attractive to a cosigner because you’re less likely to face default, which then would then be liable for.
    • How often are payments made?
      Knowing how often you’ll need to pay down your debt is important. This can impact your cosigner since they’ll have to pay if you don’t, so be sure you can make regular payments.

    Benefits and drawbacks of applying with a cosigner

    Pros

    • Potentially bolsters your chance of approval.
    • Could make you eligible for lower interest rates.
    Cons

    • The loan could affect your cosigner’s credit.
    • Double information is required since two people’s eligibility needs to be assessed.
    • It could put a strain on your relationship with your cosigner if you default.
    • If your cosigner’s credit isn’t good enough, you could still be rejected.

    Bottom line

    There are attractive benefits when it comes to applying for a loan with a cosigner. Finding a provider that meets your needs and allows cosigners can potentially result in easier acceptance and a better interest rate.

    It’s important to for you and your cosigner to know your credit scores before applying. This can help you quickly narrow down your options to loans you could qualify for and what rates to expect.

    Frequently asked questions about cosigners

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