Take out a personal loan with a co-signer

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Applying for a personal loan from a co-signer can increase your chances of approval and can help you get a lower interest rate. (Shutterstock)

If you have bad credit or an inconsistent income history, it can be difficult to get a personal loan on your own. Adding a co-signer to your app can help.

A co-signer agrees to make payments on the loan if you don’t. Their name is on the loan application, and the lender considers their credit score, income, and other financial details when reviewing your application.

If you think you need a co-signer to get a personal loan, be sure to shop around, as not all lenders allow this. Here are six personal lenders that allow co-signers and what to consider before applying with one.

Credible, it’s easy to view your prequalified personal loan rates lenders who allow co-signers.

6 personal loans for borrowers with a co-signer

If you want to use a co-signer to help you get a personal loanthe following six credible partner lenders allow co-signers:


FreedomPlus specializes in personal loans. The lender offers same day decisions and you can get financing within two business days. It also offers lower rates if you plan to use at least 85% of your loan funds to pay off your debts.

  • Loan amounts: $10,000 to $50,000
  • Loan conditions : 2 to 5 years
  • Minimum credit score: don’t divulge

happy money

Happy Money, formerly Payoff, offers personal loans to help consumers pay off credit card debt. The company says borrowers who use its Payoff Loan to pay off at least $5,000 in balances will boost their FICO score by 40 points or more.

  • Loan amounts: $5,000 to $40,000
  • Loan conditions : 2 to 5 years
  • Minimum credit score: 600

loan club

LendingClub offers personal loans, business loans, banking services, and more. The company offers fixed interest rates and financing in just two days.

  • Loan amounts: $1,000 to $40,000
  • Loan conditions : 3 or 5 years
  • Minimum credit score: 600


LightStream, the online lending division of Truist Bank, offers personal, auto, home improvement, and debt consolidation loans, as well as many other types of financing. You can use the company’s app to apply for and manage your loan, and you can get financing the same business day.

  • Loan amounts: $5,000 to $100,000
  • Loan conditions : 2 to 7 years (12 years for renovation credits)
  • Minimum credit score: 660


PenFed is a credit union that offers banking, credit cards, mortgages, and many types of loans. You don’t need to be a member of a credit union to apply (although you must become a member if you decide to go ahead with the loan). PenFed can fund loans in two to four business days after verification.

  • Loan amounts: $600 to $50,000
  • Loan conditions : 1 to 5 years
  • Minimum credit score: 660


SoFi offers personal loans, student loans, mortgages, credit cards, banking, and investment options. SoFi charges no fees on its loans, and the lender typically funds the loans within three business days. You can apply for a loan online or through the SoFi app.

  • Loan amounts: $5,000 to $100,000
  • Loan conditions : 2 to 7 years old
  • Minimum credit score: don’t divulge

Visit Credible for compare personal loan rates from these and other lenders without affecting your credit score.

How to find a co-signer

If you plan to use a co-signer, choose yours carefully. You’ll want one with a good credit rating, a history of paying bills on time, and a stable income.

Most people choose co-signers who are family members, such as a parent, grandparent, aunt, uncle, or sibling. In some cases, a close friend may also be an option. Just make sure they understand that they are legally obligated to repay the loan if you don’t, and that failure to do so could hurt their credit.

What to consider before getting a co-signer for a personal loan

Think carefully before asking someone to co-sign a loan with you. Although it may increase your chances of being approved and getting a lower interest rateit can also be risky for the co-signer, especially if you’re struggling to manage your bill payments.

If you’re thinking of having someone co-sign your Personal loanask yourself the following questions:

  1. How likely are you to stay on top of payouts? If there’s a chance you might be late paying, it could be a big risk for your co-signer. If they are unable to make the payments for you, it could hurt their credit (as well as yours) and make it more difficult for them to be approved for loan products in the future.
  2. How strong is the relationship? If your co-signer needs to start making payments on your loan, it could put a strain on your relationship. Make sure your relationship with the person is strong enough to weather any financial storm.
  3. What are the finances of the co-signer? You want a co-signer with a high credit rating, positive payment history, and stable income. It should also be someone you’re comfortable discussing finances with.
  4. Does the lender offer co-signer release options? Many lenders allow you to release the co-signer after a year or two of consecutive, one-time payments. Always ask your lender if they offer cosigner releases, and if so, how long the loan term you can apply for.

Before asking someone to co-sign a loan with you, have a loan repayment plan. You can even make a monthly budget to show the co-signer how you plan to stay on track. This can reduce their risk and make them more willing to sign up.

If you’re ready to apply for a personal loan, Credible makes it quick and easy compare personal loan rates to find the one that best suits your needs.

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