Personal Loans With a Co-Signer in 2023
With a co-signed personal loan, you add a second borrower to your loan application. You're both responsible for paying back the loan.
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A co-signed or joint loan is an option for people who don't qualify for a personal loan on their own. Adding another person’s credit history and income to an application can help you qualify and get a lower rate or higher loan amount.
A co-borrower is similar to a co-signer, except the co-borrower has access to the funds from the loan.
Here are lenders that offer personal loans with a co-signer or co-borrower, plus information about the differences and risks associated with adding someone else to your loan application.
Upgrade offers personal loans for up to $50,000 with multiple rate discounts and direct payment to creditors. The low minimum credit score makes the perks stand out even more.
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Personal Loans With a Co-Signer in 2023
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🏆 Top 3 most visited Upgrade Go To Lender Siteon Upgrade's website on Upgrade's website Check Rateon NerdWallet on NerdWallet | 5.0 /5Rate discount | 8.49-35.99% | $1,000-$50,000 | 560 | Go To Lender Siteon Upgrade's website on Upgrade's website Check Rateon NerdWallet on NerdWallet |
SoFi Personal Loan Go To Lender Siteon SoFi's website on SoFi's website Check Rateon NerdWallet on NerdWallet | 5.0 /5 | 8.99-25.81% | $5,000-$100,000 | None | Go To Lender Siteon SoFi's website on SoFi's website Check Rateon NerdWallet on NerdWallet |
4.5 /5 | 9.57-35.99% | $1,000-$40,000 | 600 | Check Rateon NerdWallet on NerdWallet | |
Achieve Personal Loans Go To Lender Siteon Achieve's website on Achieve's website Check Rateon NerdWallet on NerdWallet | 4.5 /5 | 8.99-35.99% | $5,000-$50,000 | 620 | Go To Lender Siteon Achieve's website on Achieve's website Check Rateon NerdWallet on NerdWallet |
LightStream Go To Lender Siteon LightStream's website on LightStream's website Check Rateon NerdWallet on NerdWallet | 4.5 /5 | 8.49-25.49% | $5,000-$100,000 | 660 | Go To Lender Siteon LightStream's website on LightStream's website Check Rateon NerdWallet on NerdWallet |
4.0 /5 | 9.34-17.74% | $1,000-$100,000 | None | Check Rateon NerdWallet on NerdWallet | |
4.5 /5 | 8.24-21.49% | $1,000-$50,000 | 660 | Check Rateon NerdWallet on NerdWallet | |
4.5 /5 | 7.49-30.49% | $1,000-$35,000 | None | Check Rateon NerdWallet on NerdWallet | |
4.0 /5 | 8.19-17.24% | $3,500-$50,000 | None | Check Rateon NerdWallet on NerdWallet | |
5.0 /5 | 8.99-18.00% | $500-$50,000 | 660 | Check Rateon NerdWallet on NerdWallet | |
4.5 /5 | 7.74-17.99% | $2,000-$50,000 | 700 | Check Rateon NerdWallet on NerdWallet | |
4.0 /5 | 8.99-24.25% | $5,000-$45,000 | 660 | Check Rateon NerdWallet on NerdWallet | |
5.0 /5 | 7.49-18.00% | $250-$50,000 | None | Check Rateon NerdWallet on NerdWallet |
Our pick for
Personal loans with a co-borrower
8.99-25.81%
$5,000-$100,000
None
8.99-35.99%
$5,000-$50,000
620
9.34-17.74%
$1,000-$100,000
None
8.24-21.49%
$1,000-$50,000
660
7.49-30.49%
$1,000-$35,000
None
Our pick for
Personal loans with a co-signer
8.19-17.24%
$3,500-$50,000
None
Our pick for
Personal loans with a co-signer or co-borrower
8.99-18.00%
$500-$50,000
660
7.74-17.99%
$2,000-$50,000
700
8.99-24.25%
$5,000-$45,000
660
7.49-18.00%
$250-$50,000
None
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.
How to get a personal loan with a co-signer or co-borrower
Here are the steps to get a personal loan with a co-applicant.
Check both of your credit and financial information. The lender will weigh both applicants’ credit scores, incomes and debt-to-income ratios. Familiarize yourself with this information to set expectations before applying.
Compare lenders. Some lenders have specific requirements for joint loan applicants, while a co-signer is typically expected to have better credit and income than the primary borrower. Compare qualification criteria and loan features from multiple lenders to choose one that best meets your needs.
Pre-qualify and add a co-applicant. The pre-qualification process is different for joint and co-signed loans. Joint loan applicants can often pre-qualify together to preview potential rates and loan amounts. Co-signed loan applicants typically must pre-qualify by themselves with an online lender and, depending on the results, a lender may provide a co-signed loan option. For bank and credit union loans, both borrowers may be required to apply over the phone or in person.
Submit your application and get funded. Once you submit an application, the lender will do a hard credit check on you and your co-applicant. If approved, expect to receive your funds within a few days. Keep in mind that a co-signer can’t access the loan funds or payment information, while a joint borrower can.
» Get started: Pre-qualify on NerdWallet
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.
» MORE: See your bad-credit loan options
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 inquiry, 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.
Last updated on July 10, 2023
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
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NerdWallet's Personal Loans With a Co-Signer in 2023
- LendingClub: Best for Personal loans with a co-borrower
- Upgrade: Best for Personal loans with a co-borrower
- SoFi Personal Loan: Best for Personal loans with a co-borrower
- Achieve Personal Loans: Best for Personal loans with a co-borrower
- LightStream: Best for Personal loans with a co-borrower
- USAA Personal Loan: Best for Personal loans with a co-borrower
- U.S. Bank Personal Loan: Best for Personal loans with a co-borrower
- PNC Bank Personal Loan: Best for Personal loans with a co-borrower
- Truist Bank Personal Loan: Best for Personal loans with a co-signer
- First Tech Credit Union Personal Loan: Best for Personal loans with a co-signer or co-borrower
- PenFed Credit Union Personal Loan: Best for Personal loans with a co-signer or co-borrower
- Laurel Road Personal Loan: Best for Personal loans with a co-signer or co-borrower
- Navy Federal Credit Union Personal Loan: Best for Personal loans with a co-signer or co-borrower