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5 Lenders That Accept Personal Loan Co-Signers

Amrita JayakumarJuly 18, 2019

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With a co-sign personal loan, you add a second borrower with stronger credit. You're both responsible for paying back the loan.

Summary of Lenders That Accept Personal Loan Co-Signers

LenderBest ForEst. APRMin. Credit ScoreLearn More
Upgrade

Upgrade

on Upgrade's website

Online lenders that allow co-signers

6.98 - 35.89%

600

on Upgrade's website

Lightstream

LightStream

on LightStream's website

Online lenders that allow co-signers

5.49 - 17.49%

660

on LightStream's website

OneMain

OneMain Financial

on OneMain Financial's website

Online lenders that allow co-signers

18.00 - 35.99%

None

on OneMain Financial's website

FreedomPlus

FreedomPlus

on FreedomPlus's website

Online lenders that allow co-signers

5.99 - 29.99%

640

on FreedomPlus's website

Laurel Road Personal Loan

Laurel Road Personal Loan

on Laurel Road's website

Online lenders that allow co-signers

8.01 - 16.30%

660

on Laurel Road's website

LenderBest ForEst. APRMin. Credit ScoreLearn More
Upgrade

Upgrade

on Upgrade's website

Online lenders that allow co-signers

6.98 - 35.89%

600

on Upgrade's website

Lightstream

LightStream

on LightStream's website

Online lenders that allow co-signers

5.49 - 17.49%

660

on LightStream's website

OneMain

OneMain Financial

on OneMain Financial's website

Online lenders that allow co-signers

18.00 - 35.99%

None

on OneMain Financial's website

FreedomPlus

FreedomPlus

on FreedomPlus's website

Online lenders that allow co-signers

5.99 - 29.99%

640

on FreedomPlus's website

Laurel Road Personal Loan

Laurel Road Personal Loan

on Laurel Road's website

Online lenders that allow co-signers

8.01 - 16.30%

660

on Laurel Road's website

Our picks for

Online lenders that allow co-signers

Online lenders are a convenient — and often the fastest — option for personal loans, and many allow borrowers to add a co-signer.

Upgrade

on Upgrade's website

Upgrade

Upgrade

Min. Credit Score

600

Est. APR

6.98 - 35.89%

Loan Amount

$1,000 - $50,000

on Upgrade's website


Min. Credit Score

600

Key facts

Upgrade allows co-signers to help borrowers get approved. The joint applicant must meet its credit requirements. Joint income is also considered.

Pros

  • Credit health tools.

  • Hardship plans.

  • Directly pays creditors for debt consolidation loans used to pay off credit cards.

Cons

  • Origination and late fees.

Qualifications

  • Minimum credit score: 600.

  • Minimum annual income: None, but most applicants earn more than $30,000.

  • Minimum monthly free cash flow: $800.

  • Maximum debt-to-income ratio: 60%.

  • Unavailable to borrowers in: Colorado, Iowa, Maryland, Vermont or West Virginia.

Available Term Lengths

3 to 5 years

Fees

  • Origination fee: 1.5% - 6%.

Disclaimer

Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. You may be required to have some of your funds sent directly to pay off your credit cards. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from your bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. Personal loans issued by WebBank, Member FDIC. Please refer to Upgrade's Terms of Use and Borrower Agreement for all terms, conditions and requirements.

Read Full Review
Lightstream

on LightStream's website

LightStream

Lightstream

Min. Credit Score

660

Est. APR

5.49 - 17.49%

Loan Amount

$5,000 - $100,000

on LightStream's website


Min. Credit Score

660

Key facts

LightStream, a lender with high credit standards, allows joint applications, looking at combined income and debt. Only one of the applicants needs to have excellent credit to qualify for a loan.

Pros

  • No fees.

  • Co-sign option.

  • Low starting rates.

Cons

  • Does not offer pre-qualification on its website.

  • Requires several years of credit history.

Qualifications

  • Minimum credit score of 660.

  • No minimum income specified.

  • Maximum debt-to-income ratio varies depending on loan purpose.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). Rate quote includes AutoPay discount. AutoPay discount is only available when selected prior to loan funding. To obtain a loan, you must complete an application on LightStream.com which, may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $5,000 loan at 12.8% APR with a term of 3 years would result in 36 monthly payments of $168. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. SunTrust Bank is an Equal Housing Lender. ©2019 SunTrust Banks, Inc. All rights reserved. SUNTRUST, LIGHTSTREAM and the LightStream logo are trademarks of SunTrust Banks, Inc. All other trademarks are the property of their respective owners. Lending services provided by SunTrust Bank.

Read Full Review
OneMain

on OneMain Financial's website

OneMain Financial

OneMain

Min. Credit Score

None

Est. APR

18.00 - 35.99%

Loan Amount

$1,500 - $20,000

on OneMain Financial's website


Min. Credit Score

None

Key facts

OneMain Financial makes loans to people with average or bad credit and allows joint applications. It has no minimum credit score requirements and offers same-day funding.

Pros

  • Fast funding.

  • Co-sign option.

  • Free credit score access.

Cons

  • May charge origination fee.

  • High rates.

Qualifications

  • Minimum credit score: None, average is 600 to 650.

  • Minimum credit history: Not provided.

  • Minimum annual income: None, average is $49,000.

Available Term Lengths

2 to 5 years

Fees

  • Origination fee: Varies by state.

Disclaimer

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 $30 to $150. Percentage-based fees vary by state ranging from 1% to 5% 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: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. 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.

Read Full Review
FreedomPlus

on FreedomPlus's website

FreedomPlus

FreedomPlus

Min. Credit Score

640

Est. APR

5.99 - 29.99%

Loan Amount

$7,500 - $40,000

on FreedomPlus's website


Min. Credit Score

640

Key facts

FreedomPlus gives you a lower interest rate if you add a co-signer with good credit. For example, if you initially qualify for a loan at 15.99% APR, adding a co-signer might discount that rate to 10.99%.

Pros

  • Low starting rates.

  • Co-sign option.

  • Directly pays creditors for debt consolidation loans.

Cons

  • May charge origination fee.

  • Minimum loan amount of $7,500.

Qualifications

  • Minimum credit score of 640.

  • At least $40,000 in annual income.

  • Debt-to-income ratio of less than 40%. Average borrowers have a DTI of 20%.

Available Term Lengths

2 to 5 years

Fees

  • Origination fee: 0.0% - 5.0%.

  • Late fee: $15 or 5% of amount due, whichever is greater.

  • Unsuccessful payment fee: $15.

Disclaimer

All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99% APR. The APR calculation includes all applicable fees, including the loan origination fee. For example, a four-year, $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.

Read Full Review
Laurel Road Personal Loan

on Laurel Road's website

Laurel Road Personal Loan

Laurel Road Personal Loan

Min. Credit Score

660

Est. APR

8.01 - 16.30%

Loan Amount

$1,000 - $45,000

on Laurel Road's website


Min. Credit Score

660

Key facts

Laurel Road allows co-signers to increase your chances of qualifying or to get you more favorable loan terms. The lender has no origination fees and offers direct payment to creditors, which makes it an option for debt consolidation.

Pros

  • No origination or prepayment fees.

  • Co-sign option.

  • Autopay discounts.

Cons

  • Charges late fees.

  • Lacks flexible payment options.

Qualifications

  • Minimum credit score: 660.

  • Minimum income: None specified.

  • Debt-to-income ratio: Not disclosed.

Available Term Lengths

3 to 5 years

Fees

  • Origination fee: None.

  • Prepayment fees: None.

  • Late fees: 5% or $28, whichever is less.

Disclaimer

Read Full Review

» MORE: Personal loans for bad credit

Credit unions and banks that allow co-signers

Credit unions are a good first stop for any type of personal loan, because they have low interest rates and often work with borrowers to make a loan affordable, even if the borrower has bad credit. Most credit unions allow co-signers on unsecured loans (also called signature loans) and accept online applications. The maximum APR that federal credit unions can charge is 18%.

Many major banks no longer offer personal loans, but Wells Fargo and Citibank still do and both have the option of adding a co-signer. You need to be an existing customer to apply, and you must visit a Wells Fargo or Citibank branch to complete the paperwork for the loan.

» MORE: NerdWallet's picks for best credit unions

How a co-signer can help

For those with bad credit, the benefits of a co-signer can be significant. You may qualify for a loan you wouldn’t get on your own, and your interest rate and origination fee can be lower.

How much your rate falls depends on factors such as:

  • The co-signer’s credit score.
  • Both your credit histories.
  • Your combined debt-to-income ratio.
  • The lender’s underwriting criteria.

In an example of a real loan provided by FreedomPlus, a borrower with a FICO score of 630 and annual income of $30,000 was approved for a three-year, $10,000 loan with an interest rate of 18.49%. After adding a co-signer with a 720 credit score and annual income of $70,000, the interest rate dropped 10 percentage points.

The borrower saved more than $1,700 over the life of the loan with the addition of a co-signer. (This pricing example doesn't include fees.)

Is a co-signer the right option?

There are benefits and risks to co-signing a loan. Whether you’re the borrower or co-signer, understand co-signer responsibilities before you consider a co-signed personal loan.

You can check your interest rate without affecting either your credit or the co-signer’s credit during pre-qualification, but all lenders conduct a hard inquiry on both applicants before they issue the loan. A hard credit check can temporarily lower your credit score a few points.

Lenders report positive and negative payment information to the credit bureaus, which has an impact on both your credit and the co-signer’s.

As with all loans, the credit of both parties will improve with timely payments or suffer because of missed payments. Lenders aren’t required to keep co-signers in the loop, so it’s usually up to the co-signer to ensure that the borrower is making regular payments.

Next steps: Check rates on loans

First, pre-qualify with multiple lenders to see if you're approved for a loan on your own and, if so, at what rate. If you don’t qualify, or if your rate is high, consider a co-signer loan.

Last updated on July 18, 2019

Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.

To recap our selections...

NerdWallet's Lenders That Accept Personal Loan Co-Signers