When applying for a co-signed personal loan, you include a second borrower. Youre both responsible for paying back the loan.
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If a person cannot obtain a personal loan on their own, they may be able to do so with a co-signed loan. You may be eligible for a loan with a lower interest rate or a larger loan amount by including the credit history and income of another person in your application.
Similar to a co-signer, a co-borrower differs in that they have access to the loan proceeds.
Here are some lenders who provide personal loans with a co-signer or co-borrower, as well as details on the differences and dangers of including another person on your loan application.
If a person cannot obtain a personal loan on their own, they may be able to do so with a co-signed loan. You may be eligible for a loan with a lower interest rate or a larger loan amount by including the credit history and income of another person in your application.
Similar to a co-signer, a co-borrower differs in that they have access to the loan proceeds.
Here are some lenders who provide personal loans with a co-signer or co-borrower, as well as details on the differences and dangers of including another person on your loan application.
Personal Loans With a Co-Signer in 2022
Personal loans with a co-borrower
Most expenses, including paying off one person’s debt, are eligible for use with a joint loan from LendingClub.
3 to 5 years
Between April 2022 and June 2022, LendingClub Bank’s personal loans were funded, on average, 44 hours after loan approval. There is no guarantee as to when a loan will be funded, and individual outcomes vary depending on a variety of variables, including but not limited to investor demand. An illustration of a personal loan’s repayment terms is as follows: A borrower receives a $16,980 loan with a 36-month term and a 13 percent interest rate. 49% and a 6. 00% origination fee of $1,019, for an APR of 17. 89%. As an illustration, the borrower will receive $15,961 and make 36 payments of $576 each month. Loan terms range from 24 months to 60 months, with loan amounts ranging from $1,000 to $40,000. In some states, certain amounts, rates, and term lengths might not be available. For Personal Loans, APR ranges from 8. 30% to 36. 00% and origination fee ranges from 3. 00% to 6. 00% of the loan amount. At the time of application, APRs and origination fees are calculated. Lowest APR is available to borrowers with excellent credit. The advertised rates and fees are current as of July 11, 2022, but they could change at any time. Loans are made by LendingClub Bank, N. A. , NMLS ID 167439, LendingClub Bank, a fully owned subsidiary of LendingClub Corporation, Member FDIC, Equal Housing Lender LendingClub Bank is not an affiliate of NerdWallet Compare, Inc. which is an unrelated third party (“third party”). If you visit the third party’s websites or use any of its products or services, LendingClub Bank may be compensated. The third party is not responsible for any products or services offered by this third party. Credit eligibility is not guaranteed. Before being funded or issued, loans are subject to credit approval and may require a sufficient amount of investor commitment. Your ability to get a loan may be impacted by certain information that LendingClub Bank later gathers as part of the application process, such as details from your credit report, your income, the amount of the loan you’re requesting, its intended use, and qualifying debt. Acceptance of all necessary disclosures and agreements at Lendingclub is a requirement for loan closing. com. “LendingClub” is a trademark of LendingClub Bank.
Upgrade allows co-signers to help borrowers get approved. The joint applicant must meet its credit requirements. Joint income is also considered.
2 to 7 years
Upgrade personal loans come with 7 percent annual percentage rates (APRs). 96%-35. 97%. All personal loans have a 1. 85% to 8. 99% origination fee, which is deducted from the loan proceeds. For the lowest rates, you must set up autopay and pay off a portion of your existing debt upfront. Loans feature repayment terms of 24 to 84 months. Take a $10,000 loan with a 36-month term and a 17 percent interest rate, for instance. 59% APR (which includes a 13. assuming a 94% annual interest rate and a 5% one-time origination fee, you would receive $9,500 and be required to make a $341 monthly payment. 48. Your monthly payments would total $12,293 over the loan’s term. 46. The APR on your loan could be higher or lower, and there might not be a range of term lengths available in your loan offers. Actual rate is determined by a number of factors, including loan term, credit history, and usage history. Your fixed rate loan’s cost could go up if you make late payments or incur additional charges and fees. When paying back a loan early, there are no fees or penalties. Personal loans issued by Upgrades bank partners. Information on Upgrades bank partners can be found at https://www. upgrade. com/bank-partners/.
If you include a cosigner on your SoFi loan application, you may be granted more favourable terms than you would otherwise.
2 to 7 years
Fixed rates from 7. 99% APR to 23. 43% APR reflect the 0. 25% autopay discount and a 0. 25% direct deposit discount. The SoFi rate ranges listed as of 8/22/22 are liable to change at any time without prior 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 determined by a number of variables, such as an assessment of your credit worthiness, income, and other factors, and will fall within the range of rates mentioned above. See APR examples and terms. The SoFi 0. You must consent to making monthly principal and interest payments via an automatic monthly deduction from a savings or checking account in order to receive the 25% AutoPay interest rate reduction. For periods when you do not pay by automatic deduction from a savings or checking account, the benefit will stop and be forfeited.
LightStream lets you borrow money alone or with a co-borrower. Your rate or the amount you can borrow may be lowered or increased by adding a co-borrower.
2 to 7 years
Rates quoted are with AutoPay. Your loan terms are not guaranteed and could change depending on the autopay or invoice payment method, loan amount, loan term, and purpose of the loan. Discount for AutoPay only applies when chosen before loan funding. Rates without AutoPay are 0. 50% points higher. You must submit an application on LightStream in order to get a loan. com which may affect your credit score. You might need to provide proof of your income, identity, and other application-related details. Payment example: Monthly payments for a $25,000 loan at 4. 20 years at 98% APR would require 240 payments of $164 per month. 71. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2022 Truist Financial Corporation. Truist Financial Corporation’s service marks include Truist, LightStream, and the LightStream logo. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Personal loans with a co-signer
on NerdWallets secure website
Navy Federal Credit Union Personal Loan
on NerdWallets secure website
Most members might find Navy Federal personal loans to be a good fit because of their flexible amounts, user-friendly features, and quick funding times.
1 to 5 years
on NerdWallets secure website
First Tech Credit Union Personal Loan
on NerdWallets secure website
Members who want a customizable loan with quick funding should consider First Tech’s personal loans as a viable option.
2 to 7 years
What’s the difference between a co-signer and a co-borrower?
Although co-signers and co-borrowers have a similar impact on a personal loan application, they have different obligations with regard to loan repayment and funding access.
Co-signer: A co-signer attests to another person’s loan application and promises to pay back the loan if the applicant doesn’t. According to Therese Nicklas, a certified financial planner based in Massachusetts, the co-signer has no access to the loan proceeds and cannot view information about the loan, such as how much has been repaid or whether payments have been late.
Co-borrower: A co-borrower is a co-applicant for a joint personal loan who also shares repayment responsibility. Equal access to loan funds and payment details is granted to this person.
When is a co-signer a good idea?
Lenders determine your eligibility and the appropriate loan amount and annual percentage rate based on factors like your credit and income. A lender will be more confident that you will repay the loan if you include someone who has better credit, more income, and less debt to support your application.
A co-signer can help if:
What a co-signer or co-borrower contributes will depend on things like:
Risks of adding a co-signer
Prior to submitting your application, it’s critical that you and your co-applicant are aware of the dangers of co-signing. These can include:
Next steps: Check personal loan rates
Pre-qualify to determine your own approval for a loan and the interest rate, if any Your credit score is unaffected by the pre-qualification process, and you may be able to find an affordable offer without a co-applicant.
If not, you can add a co-borrower during pre-qualification with some lenders to get a more precise rate estimate. If you don’t receive a loan offer, a co-signed option might be your only choice.
Last updated on March 9, 2022
More than 35 financial institutions’ personal loan products are evaluated and rated by NerdWallet. We interview company representatives, gather over 45 data points from each lender, and compare each lender to others that target the same clientele or provide a comparable personal loan product. Every year, NerdWallet’s writers and editors complete a thorough fact check and update, as well as making any necessary updates throughout the year.
Our star ratings give lenders points for providing customer-friendly features, such as soft credit checks for pre-qualification, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, quick funding times, reachable customer service, reporting of payments to credit bureaus, and financial education. Additionally, we take into account legal actions brought by organizations like the Consumer Financial Protection Bureau. Based on our evaluation of which are most significant to consumers and how significantly they affect consumers’ experiences, we weigh these factors.
This methodology only applies to lenders who cap interest rates at 36%, which is the highest amount that most financial experts and consumer advocates concur is necessary to make a loan affordable. NerdWallet does not receive compensation for our star ratings. Learn more about our editorial standards and rating methodologies for personal loans.
To recap our selections…
NerdWallet’s Personal Loans With a Co-Signer in 2022
Annie Millerbernd is a personal loans writer. Her articles have appeared in USA Today and The Associated Press. Read more.
FAQ
Can you get a loan with bad credit if you have a cosigner?
Applying for a personal loan with a cosigner can increase your chances of getting approved if you have bad or fair credit. Additionally, you might qualify for a lower interest rate with a cosigner than you would otherwise.
Can I cosign with a 500 credit score?
If you intend to ask a friend or member of your family to co-sign for a loan or credit card application, they must have good credit and a long history of responsible financial behavior. Typically, lenders and credit card companies demand that your co-signer have a credit score of 700 or higher.
How hard is it to get a personal loan with a cosigner?
Each lender is unique, but the majority favor cosigners with credit scores of at least 670. Additionally, they must demonstrate their financial capacity to repay the loan in the event of default. A cosigner can be a dependable friend or relative who is willing to assume this responsibility.
Can a cosigner have a 600 credit score?
A cosigner will typically need credit that is in the very good or exceptional range—670 or higher—even though there may not be a minimum credit score required. Although each lender will have its own requirements, a cosigner is typically eligible with a credit score in that range.