BEST OF
Co-Signed or Joint Personal Loans: Compare and Apply
With a joint or co-signed personal loan, you add a second borrower to your loan application. You're both responsible for paying back the loan.
Joint and co-signed personal loans are options for people who don't qualify on their own. Adding another person’s credit history and income to a loan application can increase your chances of qualifying and get you a lower rate or higher loan amount.
A joint loan is best for money you plan to use and repay together, while a co-signed loan can help you qualify for a loan you’ll pay back yourself.
Here are lenders that offer co-signed and joint loans, plus information about the differences and risks associated with adding someone else to your loan application.
Joint and co-signed personal loans are options for people who don't qualify on their own. Adding another person’s credit history and income to a loan application can increase your chances of qualifying and get you a lower rate or higher loan amount.
A joint loan is best for money you plan to use and repay together, while a co-signed loan can help you qualify for a loan you’ll pay back yourself.
Here are lenders that offer co-signed and joint loans, plus information about the differences and risks associated with adding someone else to your loan application.
Summary of Co-Signed or Joint Personal Loans: Compare and Apply
Lender | NerdWallet Rating | Est. APR | Min. Credit Score | Learn More |
---|---|---|---|---|
Best for Lenders that allow co-signers | 5.94 - 35.97% | 580 | on Upgrade's website | |
Best for Lenders that allow co-signers | 7.99 - 29.99% | 620 | on FreedomPlus's website | |
Best for Lenders that allow co-signers | 6.49 - 17.99% | 700 | See my rates on NerdWallet's secure website | |
Best for Lenders that allow co-signers | 7.24 - 25.34% | None | See my rates on NerdWallet's secure website | |
Best for Lenders that offer joint loans | 18.00 - 35.99% | None | on OneMain Financial's website | |
Best for Lenders that offer joint loans | 4.49 - 20.49% | 690 | on LightStream's website | |
Best for Lenders that offer joint loans | 8.05 - 35.89% | 600 | on LendingClub's website | |
Best for Lenders that offer joint loans | 5.99 - 18.85% | 680 | on SoFi's website | |
Best for Lenders that offer joint loans | 7.95 - 35.99% | 640 | on Prosper's website |
Our picks for
Lenders that allow co-signers
Adding a co-signer to a personal loan application can boost your chances of qualifying for a loan with a low annual percentage rate.
on Upgrade's website
Upgrade
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on Upgrade's website
on FreedomPlus's website
FreedomPlus
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on FreedomPlus's website

on NerdWallet's secure website
PenFed Credit Union Personal Loan

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on NerdWallet's secure website

on NerdWallet's secure website
PNC Bank Personal Loan

Min. Credit Score
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on NerdWallet's secure website
Our picks for
Lenders that offer joint loans
on OneMain Financial's website
OneMain Financial
Min. Credit Score
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on OneMain Financial's website
on LightStream's website
LightStream
Min. Credit Score
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on LightStream's website
on LendingClub's website
LendingClub
Min. Credit Score
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on LendingClub's website
on SoFi's website
SoFi

Min. Credit Score
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on SoFi's website
on Prosper's website
Prosper
Min. Credit Score
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on Prosper's website
Credit unions and banks that allow co-signed and joint loans
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 (629 or lower FICO score). 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%.
Few major banks still offer personal loans, but PNC does and allows its borrowers to get a co-signed loan. Other banks, like Wells Fargo, offer joint loans.
What’s the difference between a co-signed loan and a joint loan?
Adding a co-signer helps one person qualify for a loan that he or she will use and repay alone. Joint loans are for shared use by two people, whether that’s to pay down one of your debts or do a home renovation.
When applying for a personal loan, adding either type of co-applicant gives the lender more information to consider, says Massachusetts-based certified financial planner Therese Nicklas. Most lenders will consider your debts, income and credit histories, and adding someone with better credit than yours can boost your chances of approval.
Most of the differences between a co-signed and joint loan come after the money is disbursed, Nicklas says. While a co-borrower on a joint loan gets equal access to the money, a co-signer has no rights to the money.
For example, if you get a personal loan for a home renovation, a co-signer can’t use the money, but a co-borrower could.
Co-signers also can’t see information about the loan, like how much you’ve repaid or if you missed any payments, Nicklas says.
In both cases, the two parties are on the hook for the amount of money borrowed, she says. If you co-signed a loan, the lender expects that you’ll be able to repay it if the borrower can’t.
How a co-signer can help
For those with bad credit, the benefits of having a co-signer can be significant. You may qualify for a loan you wouldn’t get on your own, and your rate can be lower.
» MORE: Personal loans for bad credit
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.)
How a co-borrower can help
In a joint loan, a co-borrower can help you get approved for a loan with more favorable terms, but some lenders may require both of you to meet the minimum credit score requirement.
Other lenders set specific standards for joint loans. For example, LendingClub’s minimum credit score for single applicants is 600, but a secondary borrower on a joint loan can have a score as low as 540.
Is a co-applicant the right option?
There are benefits and risks to borrowing money with someone. Whether you’re the borrower or co-signer, understand co-signer responsibilities before you take a personal loan.
You can check your rate without affecting your credit when you pre-qualify, but few pre-qualification processes allow you to add a co-borrower or co-signer.
When you apply, most lenders will perform a hard credit check, which can temporarily lower credit scores by a few points. Lenders also report positive and negative payment information to the credit bureaus, which can impact both parties.
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-applicant.
Last updated on February 25, 2020
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 Co-Signed or Joint Personal Loans: Compare and Apply
- Upgrade: Best for Lenders that allow co-signers
- FreedomPlus: Best for Lenders that allow co-signers
- PenFed Credit Union Personal Loan: Best for Lenders that allow co-signers
- PNC Bank Personal Loan: Best for Lenders that allow co-signers
- OneMain Financial : Best for Lenders that offer joint loans
- LightStream: Best for Lenders that offer joint loans
- LendingClub: Best for Lenders that offer joint loans
- SoFi: Best for Lenders that offer joint loans
- Prosper: Best for Lenders that offer joint loans