The best personal loans with cosigners allow you combine forces with a spouse, parent or anyone else who can help you meet a lender’s credit requirements, qualify for a larger loan and get lower rates. Unfortunately, lenders that accept cosigners on personal loans are few and far between. So this year, we added lenders that accept coborrowers. A coborrower can boost your loan amount or lower your rate — but you still need to meet requirements on your own.
We selected these eight lenders from the more than 130 personal loan providers we’ve reviewed to help you find the right loan to share with your spouse, parent or anyone else that can help your application. We also added options for different priorities and credit types.
Why trust us? Together, our lending experts have spent over a decade researching and comparing personal loans and other financial products to help our readers make an informed decision. We regularly revise our pages and have spent hundreds of hours making sure that our best providers really do offer the best options available today.
Quick look: Best personal loans with cosigners or coborrowers
The coronavirus pandemic has had an unprecedented impact on Americans’ finances. If you lost your job and are considering taking out a personal loan to cover bills, you might have a difficult time qualifying. Read our financial guide to COVID-19 to explore other options available to you.
LightStream offers competitive interest rates and long loan terms. And if you don't quite qualify, a coborrower can help boost your application. Its Rate Beat Program can also help you score a low APR by offering to beat competitor rates if you meet its requirements. But there's no preapproval process. LightStream will do a hard pull of your credit and the credit of your coborrower, which can temporarily lower your scores. If you want to compare rates, make LightStream the last application you fill out.
Not all of the lenders in Lendvious's network accept coborrower, but some do. And if you've been struggling to find a lender that will accept poor credit and a coborrower, you might be connected to one that can work with you. Its rates and terms vary based on the credit of both you and your coborrower, so you'll need to fill out its online form to see what type of loan you might qualify for.
Not available in: Hawaii
Accepts borrowers with bad credit
Low starting APR
Prequalifying won't affect credit score
Might have to field phone calls and emails from partner lenders
SoFi snags the position of best overall for personal loans — and it's a solid choice if you want to fill out a joint application. It offers a slew of benefits to borrowing, including career coaching, networking events and interest rate discounts. You can also bank and invest with SoFi. But its maximum APR of 19.63% is quite high for a lender that only accepts good credit. Even with a coborrower, you may need excellent credit to score more competitive rates and terms.
Fixed rates from 4.99% APR to 19.63% APR (with AutoPay). SoFi rate ranges are current as of August 11, 2021 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. 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. See APR examples and terms. 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.
You only need a credit score of 600 to qualify for a loan from Upgrade — but a coborrower with a low debt-to-income ratio and a higher score can be useful if you want to avoid an APR of 35.89%. Borrowing with Upgrade also comes with free credit monitoring, which can help you keep an eye on your score and any errors on your report. And if you need flexibility with your loan proceeds, Upgrade also offers a line of credit.
Not available in: Colorado, Iowa, Maryland, Vermont, West Virginia
Flexible loan options
No prepayment penalty
Inflexible loan terms
High origination fee of up to 6%
Must have at least $1,000 left over after monthly expenses
Stricter eligibility criteria for self-employed applicants
Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by WebBank, Member FDIC.
OneMain Financial's interest rates are on the high side — even if you have a co-borrower. However, it's still less expensive than working with a short-term lender. And you may be able to get your funds the same day you apply. It also allows you to back your loan with collateral to increase your chances of approval.
Not available in: Alaska, Arkansas, California, Connecticut, Massachusetts, Michigan, Rhode Island, Vermont
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
Laurel Road is one of the few lenders that actually accepts cosigners — not just coborrowers. Its rates cap out at a competitive 24.75% APR. If you don't quite meet its eligibility criteria, a cosigner can help push you over the edge. And if you're a doctor or dentist, you may be eligible for an APR as low as 5.5% and loan amounts up to $80,000. Otherwise, loans top out at $45,000 for all other borrowers.
If you're willing to open an account, Digital Federal Credit Union (DCU) is a good option for borrowers who want access to more than just loans. You can join the credit union during the loan application process. And it allows you to apply with a co-borrower. It doesn't charge an origination fee, and you may be eligible for a personal loan from $200 to $100,000 — one of the widest ranges we've seen.
If you and your co-borrower have excellent credit, you may be able to secure a low APR of just 5.24% — one of the lowest we've seen. It doesn't charge an origination fee, and there are several interest rate discounts available for qualifying account holders. But if you don't currently bank with Wells Fargo, you need to visit a branch to apply in person.
Review each lender’s basic terms to better understand which options are the best for your individual needs:
7.00% to 24.75%
$5,000 to $45,000
As little as 2 business days
3, 4 or 5 years
$5,000 to $100,000
As soon as next day
24 to 84 months
Starting from 5.99%
$1,000 to $100,000
1 to 2 business days
2 to 5 years
Digital Federal Credit
5.99% to 18%
$200 to $100,000
1 to 2 business days
Up to 5 years
5.74% to 19.99%
$3,000 to $100,000
As soon as 1 business day
1 to 7 years
4.99% to 19.63%
$5,000 to $100,000
Up to 30 days
24 to 84 months
5.94% to 35.97%
$1,000 to $50,000
1 to 4 business days
3 to 5 years
18% to 35.99%
$1,500 to $20,000
As soon as the same day
24, 36, 48 or 60 months
Bank and credit union loans with a cosigner
Most community banks and credit unions allow you to apply with a cosigner or joint loan applicant. Larger banks like Wells Fargo also sometimes accept coborrowers, though it’s not as common. These tend to have stricter eligibility requirements than their regional or community counterparts.
They often offer customer discounts — especially banks — so you might be able to get a better deal by borrowing with a joint loan applicant who has an account with the bank. With a credit union, there’s a chance you’ll be able to skip the membership requirement by applying with another person, though typically both applicants need to be members to qualify.
What’s the difference between a cosigner and a coborrower?
The main difference between a cosigner and a coborrower is that you don’t need to meet the lender’s requirements with a cosigner, but with a coborrower you do. Generally, a personal loan with a cosigner is easier to qualify for than a personal loan with a coborrower.
A cosigner is someone who lets you use their credit score and income to increase your chances of getting approved. If you're unable to repay your loan, your cosigner is responsible for making payments on your behalf. However, they don’t have access to your loan funds and can’t dictate how you use them. Lenders that accept cosigners for personal loans are rare.
A coborrower — also called a coapplicant or joint applicant — applies for the loan with you. You both have to meet the lender’s minimum credit requirements, but a coborrower with a higher credit score can help you get a lower interest rate. And applying with a coborrower usually helps you qualify for a higher loan amount, since the lender considers your combined income. Many lenders offer joint loan applications for personal loans.
When to apply with a cosigner
You might want to apply for a personal loan with a cosigner to help you qualify in the following situations:
You don’t meet the lender’s minimum credit requirements
You’re unemployed, self-employed or otherwise don’t meet the lender’s income requirements
You aren’t a US citizen or permanent resident
You’re under 18 — though in some cases, you might still need to be 18
When to apply with a coborrower
Consider a coborrower if you can meet the lender’s basic requirements, but find yourself in one of the following scenarios:
You’re sharing the expense with a friend, parent or spouse — like consolidating debt from a joint credit card
You need to borrow more money than you can qualify for on your own
Your coborrower is eligible for rate discounts
Your coborrower’s credit score is higher enough to help you get a lower rate
How to get a personal loan with a cosigner
Getting a loan with a cosigner or coborrower is a lot like getting a personal loan on your own, just with a few extra steps. In most cases, both of you will have to complete applications and submit the same types of documents. Follow these steps to apply for a personal loan with a joint application:
Compare personal loans. Compare banks, credit unions and online lenders that accept cosigners or coborrowers based on factors like interest rates, fees, loan amounts and loan terms. Or, use a connection service to weed out lenders that only let you apply on your own.
Prequalify. Many lenders allow you to submit basic information about yourself and the person you’re applying with to get an estimate of the loan amount, interest rates, origination fee and loan terms you might qualify for.
Apply. In most cases, both of you will have to complete copies of the application and submit the same documents. But sometimes, the cosigner might be the only one required to submit documents. At this point, your application will affect your credit score.
Review your offer. Make sure both of you understand the rates, fees and terms, as well as your legal responsibilities toward repaying the loan before signing the loan documents.
Receive the funds. Usually the lender sends the funds to the primary borrower’s bank account. So if you brought on a coborrower for a customer discount, make sure the person who's eligible for the discount is listed as the primary borrower.
Coborrower policies from different lenders
Joint applications don’t work the same way everywhere. Here are the policies for coborrowers with some top online lenders and banks.
LendingClub considers both of your qualifications, including but not limited to: credit scores, income, debt-to-income (DTI) ratios and credit histories. You and your coborrower will be equally responsible for repaying the loan.
How much can I save with a cosigner or coborrower?
That depends on the interest rates and terms you could have qualified for on your own. You can find out how much you can save using a joint application by prequalifying with a lender on your own and with another person. Use our calculator to see what kind of a differences a joint application makes on monthly payments and the total cost of interest.
Yes, you can hire someone to be a cosigner on your personal loan. But it’s not a good idea. The two we found — Hire a Cosigner and Cosigner Finder — charge a fee to connect you with a cosigner. But be weary of any company that tries to get you to pay up front before it provides a service — it’s often the sign of a scam.
Cosigning a loan is a big commitment and can have a deep impact on the cosigner’s finances. That’s why some lenders won’t even let you bring on a joint applicant with who you don’t have a close personal relationship with.
Alternatives to borrowing with a cosigner or coborrower
Sometimes the negatives outweigh the benefits of borrowing with a cosigner or coborrower. Before putting your relationship on the line, consider these alternatives instead:
Secured loans. Backing your loan with collateral like a savings account, car or your home can help you qualify for a competitive rate even if you have poor credit.
CDFI loans. Community Development Financial Institutions (CDFIs) are local banks and credit unions that typically offer affordable funding to low-income or low-credit borrowers in the area, usually as a chance to build your credit.
Loans for students. If you’re in school and don’t meet credit requirements on your own, some lenders like Boro will consider your grades and major instead of credit and income when you apply.
Loans for nonresidents. A handful of lenders like Stilt specialize in funding for nonresidents on a valid visa who don’t have a cosigner but need a loan. They might offer credit building services as well.
Finding a provider that meets your needs and allows a cosigner can potentially result in easier acceptance and a better interest rate. However, you and your cosigner should discuss the terms of the loan before applying. This ensures you both understand the risks before signing the dotted line.
Here are answers to questions you might have about getting a personal loan with a cosigner.
How does a cosigner differ from a guarantor?
A guarantor is associated with apartments or rentals where only the primary applicant is living at the residence, although it's also used with personal loans on occasion. The main difference is that a cosigner is responsible for late or missing payments as well as loan default, whereas a guarantor is only responsible if you default.
Is it easier to get a loan with a cosigner or coborrower?
It depends. A cosigner or coborrower can be helpful because they minimize risk for the lender. But if they have a poor credit score or rocky financial history, they may not make the approval process any easier.
On the other hand, if your cosigner or coborrower has stellar credit, they may increase the odds of you being accepted for a loan. And they may even be able to score you a better rate than you would’ve been offered on your own.
Can I remove a cosigner from my loan down the road?
Yes, it’s possible to remove your cosigner from your loan by either refinancing or consolidating the debt in your own name. Another option is to take out a balance transfer credit card and use that to pay off your loan’s remaining balance. You can learn more with our guide to removing a cosigner from your loan.
Kellye Guinan is a seasoned financial writer with over 500 articles under her belt spanning all things loans from auto to personal to business and everything in between. With four years in the field and five years of research experience, she's able to make complex personal finance decisions easier for anyone to tackle. When she's not up to her knees learning about the latest trends in lending, she spends her time improving her own financial literacy and expertise — and maintaining a Duolingo streak of over 1,300 days.
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