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Best Personal Loans With A Co-Signer: Top Picks For 2025
With a co-signer, you add one more individual to your loan application. Unlike a co-borrower, it will only be responsible for making your loan payments if you fail to pay.
Bringing a guarantor makes it possible to get better loan terms with bad credit. Let’s find out where you can get the best online personal loan with a co-signer.
Find the Best Personal Loans with Co-signers
- Be a U.S. citizen, a permanent resident, or living in the U.S. on a valid visa
- Be at least 18 years old (19 in Alabama and some other states)
- Give a working email address
- Provide valid bank account details
- Confirm a sufficient monthly income to cover your loan payments
- Origination fees: 1.85% to 9.99%
- Late payment fees: $10
- Non-sufficient funds fees: $10 per payment returned
- No prepayment penalties
- Multiple rate discounts
- Next-day funding
- The due date may be changed
- Direct payments for debt consolidation
- APRs may be high
- Origination fees are charged
- Late fees may be applied
Fair-credit borrowers who need the money quickly
- At least 18 years also
- Permanent US resident
- Income confirmation
- Valid bank account or debit card
- Origination fees: 1% to 10%, or $25 to $500, depending on the state
- Late payment fees: $5 to $30, or 1.5% to 15% of your loan amount
- Non-sufficient funds fees: $10 to $50 per payment returned
- Joint and secured loans are available
- Wide range of loan options for low credit
- Pre-qualifying doesn’t affect your credit score
- Convenient options for debt consolidation
- Relatively high interest rates
- Charges origination fees
- APRs are not disclosed when pre-qualify
- Not available in all states
Borrowers with credit issues who want to avoid predatory lenders.
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Have fair credit (at least 640)
- Provide an active email address and phone number
- Origination fees of up to 9%
- $15 late fee
- $15 NSF fee
- Low annual percentage rate
- No prepayment penalties
- Wide range of available loan amounts
- Same-day funding under some circumstances
- Accessible for fair credit borrowers
- High origination fee (up to 9%)
- Hard credit checks when you select your loan to move forward
- No cosigners are allowed for joint loans
- It is not available in all states
- Limited repayment options set at either 36 or 60 months
Fair credit borrowers who need to cover various personal needs
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information and social security number
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Optional fees (up to 6%)
- Low interest rates
- Co-applicants are allowed
- No prepayment penalties
- Flexible loan amounts
- Interest rate discounts are available
- Multiple repayment options
- No origination fee
- Good credit is required for better loan terms
- Hard credit check if you continue your application
- Late fees might apply
- No co-signer option available
- No physical branches
Applicants with good to excellent credit scores who want to consolidate debt, make major purchases, or cover their long-term needs.
What Is a Co-Signer?
A co-signer is an individual who will be responsible for repaying the loan if an original borrower defaults. To take this responsibility, a person needs to sign your loan agreement along with you. Bringing a co-signer makes it easier for you to qualify for a loan. This is because a guarantor’s income and credit score is also considered. Borrowers often add co-signers to their loans when they want to get a higher loan amount than they initially can or in case they have a bad credit score.
How to Get a Personal Loan with a Co-Signer?
Take the following steps for a smooth process of getting a personal loan with a co-signer:
Get the funds. If approved, loan proceeds will be deposited into your bank account within a few business days.
- Check your credit and financial details. This will help you understand what you should expect from your loan offers. Lenders pay attention to your credit score, income, and DTI, so these parameters should be in tip-top shape for you or your co-signer.
- Compare lenders. Look at a lender’s minimum credit score requirement, income and DTI criteria, interest rates, fees, and repayment options and choose those with suitable conditions.
- Pre-qualify. You can pre-qualify for loans from several loan providers without putting your credit score at risk. Both you and your co-signer should do this to get the clearest possible picture of loan terms you can get.
- Submit your application. Choose a lender with the best terms and submit your loan request form online or in a lender’s store. Your co-signer may also be asked to apply in person or by phone. Then, a lender will perform a hard credit check to estimate your creditworthiness.
- Get the funds. If approved, loan proceeds will be deposited into your bank account within a 1-3 business days.
Features of a Good Co-signer
Below are some qualities you should look at when choosing a co-signer:
A Co-Signer or Co-Borrower: What’s the Difference?
While these two terms are often used in the same sense, there are a few legal differences between them.
A co-signer is a person who signs your loan agreement with you and only needs to take part in repaying it if you won’t be able to pay yourself. Such an individual can’t access the information about your loan and has no right to use your loan funds.
A co-borrower is a person who shares the responsibility of repaying the loan with you from the start. It can access the funds and request information about the loan, including how much you’ve already paid, missed payments, and other financial details. If the loan was used to purchase property, a co-borrower also shares ownership of it with you.
When Adding a Co-Signer Is a Good Idea?
Loans with a co-signer can suit people with credit issues who want to get a loan at more favorable terms than those offered by bad credit lenders. Here are a few situations when adding a co-signer to your loan request can be a good idea:
Risks of a Co-Signed Personal Loan
Co-signed personal loans can be risky at some point. Here are a few drawbacks you should be aware of:
- Both you and your co-signer may face negative effects. Loan default will make a co-signer responsible for repaying debt. Additionally, it can result in credit score damage and lawsuits for both parties. Before getting a loan, ensure you can make your monthly payments without sacrificing your regular expenses;
- A co-signed loan can affect your credit scores. After you submit your application, a lender will make a hard credit inquiry, which drops your credit rating by a few points;
- Your debt-to-income ratio will increase. This will make it more difficult for you to get a loan in the future.
Does Using a Co-Signer Affect Your Credit?
A co-signer has no impact on your credit. Whether you add one to your personal loan application or get a loan on your own, it will have the same initial impact on your credit. A lender will perform a hard credit check, which can ding your credit score by up to five points. That said, getting a co-signer to help you get approved for a personal loan could help you build credit by making on-time payments.
Alternatives to Personal Loans with Co-signers
If you’re looking for a reasonable alternative to personal loans with co-signers, here are several options to pick instead.
Secured Personal Loans
A secured personal loan is when you need to provide a lender with some valuable property to get the funds. A loan provider will be able to seize your collateral if you default on your loan. Therefore, secured loans can be easier to qualify for with bad credit.
Credit Cards
If you need money to buy something, consider putting a purchase on your credit card balance. Many credit cards offer a 0% APR grace period. Thus, you can even get an interest-free loan if you manage to repay the funds before the promotional period ends.
Loans from Bad Credit Lenders
Bad credit lenders will never deny you a loan just because of your less-than-perfect credit scores. Their financial products are unsecured and can be obtained quickly, so you can use them as emergency loans. However, they always come with high interest rates.
Borrowing from Family
When you borrow money from your loved ones, you typically don’t need to pay additional interest. You can also get more flexible and favorable loan terms, making your debt easier to handle. However, it’s not always possible to get the needed amount from your family member.
What to Pay Attention to When Comparing Personal Loans with Co-Signers?
As each lender may set its unique terms, personal loans with co-signers differ from each other significantly. Here’s what you should look at when choosing the loan provider to work with:
- Eligibility criteria for both applicants. Make sure you pick a lender with the requirements you and your co-signer can meet. They are typically focused on your payment and credit history, income, DTI, and credit score.
- Application procedure. Co-signed loans often have a more complicated application procedure than regular personal loans. While some lenders allow you to apply remotely, others may require you to visit a branch. Just ensure the process will be convenient for both you and your co-signer.
- Co-signer release. Some loan providers offer loans with the ability to release a co-signer from the financial obligation after a certain period. However, it may come with some extra requirements and conditions.
- Interest rates and fees. Pay attention to interest rates and origination fees set by a lender. Also, look at the total loan cost and make sure your monthly payments suit your budget.
- Loan amounts. If you need a significant amount for some major life project, make sure a lender can meet your expectations.
- Disbursement times. It may take a lender a few days to verify your data via credit bureaus and transfer the money to you. Keep it in mind before applying.
How Much Do Loans with a Co-signer Cost?
Co-signed loans come with average APRs of 6.94% to 25.29%. Your particular APR depends on the lender, state, and both your and your co-signer’s creditworthiness and income. Some loan providers may charge interest rates as high as 36%.
Additionally, the repayment period determines how much you will pay for the entire loan’s life. The longer term means your monthly payment will be lower while the total cost of your debt will increase.
Representative Example
Suppose that you’re going to borrow $5,000. This is how your loan cost can change depending on the APR and loan term:
| APR | Repayment Period | Monthly Payment | Total Cost | Total Interest |
|---|---|---|---|---|
| 6.95% | 12 months | $432.52 | $5,190.22 | $190.22 |
| 6.95% | 36 months | $154.27 | $5,553.76 | $553.76 |
| 12.81% | 12 months | $446.14 | $5,353.69 | $353.69 |
| 12.81% | 36 months | $168.01 | $6,048.45 | $1,048.45 |
These are advertised rates only provided for illustrative purposes. Use your particular loan terms to determine the specific costs via our simple loan calculator:
Loan calculator
ESTIMATED MONTHLY PAYMENT
TOTAL LOAN AMOUNT PAID
TOTAL INTEREST PAID
TOTAL COST OF LOAN
Why Choose BadCredify
BadCredify is a comprehensive platform designed to provide the essential information you need to make informed financial decisions. We aim to assist individuals in finding the right loan options for different life circumstances, compare offers from reliable lenders, and select the best terms available on the market.
Our team of experts offers practical financial guidance, advice on managing debt, and detailed resources about various loan products. Additionally, we provide fair, unbiased reviews of lenders to help you determine if a particular loan provider suits your needs. By choosing us, you can rest assured you’re dealing with an independent service that can help you navigate your financial journey wih ease. Simply complete one easy form to receive personalized loan offers in minutes.
FAQ
What is a co-signed loan?
A co-signed loan is a joint loan. To get one, you need to bring a co-signer who will be responsible for making your loan payments if you fail. It’s just a regular personal loan, so you can use it for various personal needs, from covering medical bills to making debt consolidation.
What credit score should my co-signer have for a personal loan?
Most lenders ask a co-signer to have a credit score of at least 670. The higher the rating, the better loan terms you can get.
What will happen if I default on my co-signer loan?
If you’re unable to make your loan payments, your co-signer will be forced to pay instead. Additionally, both your and your co-signer’s credit history will be affected.
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