How To Apply for a Personal Loan With a Co-Signer: The Best Steps To Take
Yes, you can get a personal loan with a co-signer if you find a lender that allows it. A co-signer with strong credit and steady income can help you qualify, lower your annual percentage rate (APR) and borrow more than you could on your own.
Most lenders allow borrowers and co-signers to apply for personal loans online quickly. Follow these steps to find loan options and apply for a personal loan with a co-signer.
MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.
Key Takeaways
Yes, you can get a personal loan with a co-signer — if the lender allows it: A co-signer with strong credit can help you qualify, lower your APR and borrow more.
Aim for a co-signer with a 670+ FICO score: Most lenders want good credit, and a score above 740 gives the best shot at low rates.
A co-signer could save you real money: Dropping a $10,000, two-year loan from 25% to 12% APR saves about $1,511 in interest.
Know the difference from a co-borrower: A co-signer backs the loan without touching the funds, while a co-borrower shares both the money and the repayment.
Not every lender is a true co-signer option: Several, including Upgrade, accept only joint or co-borrower applications, not co-signers.
A missed payment hurts you both: Late marks hit both credit reports, can stay up to seven years and may expose the co-signer to collections or, in some states, wage garnishment.
Summary generated by AI, verified by MoneyLion editors
What Is a Co-Signer?
A co-signer is a person who signs your loan with you and agrees to pay the debt if you cannot. Using a co-signer can help you qualify for better loan terms, but it puts your co-signer’s credit and money at risk.
What Is a Co-Borrower?
A co-borrower is a person who applies for a personal loan with you, shares access to the loan funds and is equally responsible for paying it back.
Can You Get a Personal Loan With a Co-Signer?
Yes, you can get a personal loan with a co-signer, though not every lender offers this option. Adding a co-signer with strong credit can help you qualify for a loan you might not get on your own and may lower your annual percentage rate (APR).
Most lenders want a co-signer with a FICO score of 670 or higher, which falls within the good-to-excellent range. A score above 740 gives you the best chance at lower rates. Lenders also look at the co-signer’s income, debt-to-income (DTI) ratio and payment history.
Learn More: If I Apply for a Loan, Do I Have To Accept It?
Why You Might Need a Co-Signer for a Personal Loan
Having a co-signer could help you qualify for a personal loan with a lower interest rate or a higher loan amount. You could potentially save thousands of dollars over the life of the loan.
For example, according to Federal Reserve data, the average APR on a 24-month personal loan was around 12% in May 2026, while borrowers with fair credit often see APRs of 25% to 30%, according to data from the Consumer Financial Protection Bureau. On a $10,000 personal loan repaid over two years, dropping your APR from 25% to 12% with a co-signer could save you close to $1,511 in interest over the life of the loan — roughly $2,809 in interest at 25% versus about $1,298 at 12%.
In addition to saving money, here are some other reasons you might want to consider getting a co-signer for your personal loan:
Your credit score is too low. The first thing a lender looks at when considering your personal loan application is your credit score. If you have less-than-stellar credit, you might not qualify for a personal loan.
You have no credit history. You might not have a bad credit score, but instead have a limited or no credit history. If you've never taken out a loan — like a student loan or car loan — or used a credit card, you might not have enough credit history for the lender to consider. Getting a co-signer with a longer credit history can help you get approved for your personal loan.
Your income is too new. If you just started a new job or graduated from college, you might not have enough income history to qualify for a personal loan. Sure, you're making money now, but sometimes banks want to see a longer history of income before lending you money. Your co-signer's income history can help you qualify — just be sure you borrow only as much as you can pay back on your own.
Learn More: How To Get a $30,000 Loan
Co-Signer vs. Co-Borrower: What’s the Difference?
Both add another person to your loan, but they play different roles. A co-signer backs the loan without using the funds, while a co-borrower shares the loan and the money with you.
Feature | Co-signer | Co-borrower |
|---|---|---|
Access to loan funds | No | Yes |
Responsible for payments | Yes, only if you fail to pay | Yes, from day one |
Ownership of the loan | No | Yes |
Appears on the loan agreement | Yes | Yes |
Impact on their credit | Yes | Yes |
Common use case | Helping someone qualify | Sharing a loan for a joint goal |
Types of Personal Loans Available With a Co-Signer
Not every personal loan works with a co-signer. Here are the main options to look at.
Unsecured Personal Loans With a Co-Signer
An unsecured personal loan with a co-signer is a loan without collateral, in which a second person backs your promise to pay. Adding a co-signer can help you qualify and lower your APR.
Secured Personal Loans With a Co-Signer
A secured personal loan with a co-signer uses an asset like a car or savings account as backup, plus a second person who agrees to pay if you cannot. This setup can unlock the lowest rates.
Debt Consolidation Loans With a Co-Signer
A debt consolidation loan with a co-signer rolls your credit card or other high-rate debt into a single fixed monthly payment, with a co-signer added to strengthen your application.
Home Improvement Loans With a Co-Signer
A home improvement loan with a co-signer is a loan meant to finance repairs, renovations or upgrades to your home. This can include kitchen and bathroom remodeling, outdoor projects, or roof replacement.
Lenders That Accept Co-Signers or Co-Borrowers on Personal Loans
A few lenders let you add a co-signer or co-borrower to your personal loan application. Compare the basics side by side before you apply.
Lender | Minimum credit score | APR range | Loan amounts | Co-signer or co-borrower |
|---|---|---|---|---|
No published minimum; typically around 600 according to third-party reviews | 7.74% to 35.99% | $1,000 to $50,000 | Co-borrower | |
No published minimum; typically mid-600s according to third-party reviews | 6.99% to 25.29% | $5,000 to $35,000 | Co-borrower | |
No minimum | Up to 35.95% | $300 to $10,000 | Co-signer (in certain cases) | |
No published minimum; typically good to excellent according to third-party reviews | 6.09% to 17.99% | $600 to $50,000 | Co-borrower | |
No published minimum; typically around 680 according to third-party reviews | 9.24% to 24.99% | $1,000 to $50,000 | Co-borrower | |
No minimum | 8.74% to 18.00% | $250 to $150,000 loan amounts (loans more than $50,000 require a qualified co-applicant) | Co-borrower (must also be an NFCU member) | |
No minimum | 11.99% to 35.99% | $1,500 to $30,000 | Co-borrower |
6 Steps To Apply for a Personal Loan With a Co-Signer
Applying for a personal loan with a co-signer means submitting one application that lists both your income and your co-signer’s income and credit.
Step 1. Check your credit and your co-signer’s credit: Pull both credit reports so you know where you stand before you apply.
Step 2. Compare lenders that accept co-signers: Not every lender allows co-signers, so shop only the ones that do.
Step 3. Prequalify with a soft credit check: Prequalification shows your likely rate and loan amount without hurting either credit score.
Step 4. Gather your documents: Collect income, ID and address proof for both you and your co-signer.
Step 5. Submit the full application together: Fill out one application that lists both borrowers, then sign and send it in.
Step 6. Review the loan offer and accept the funds: Read the rate, term and fees, then accept the offer so the lender can send the money to your bank.
Comparison Shop
Most traditional and online lenders will first verify your credit with a soft inquiry. This will allow you to see the rates you can get from different lenders without taking a hit on your credit score.
Get Your Documents in Order
Each of you needs to hand the lender a few basic documents. Have these ready before you start the application.
What you (the borrower) need:
Photo ID: Driver’s license, state ID or passport
Proof of income: Recent pay stubs, W-2 or tax return
Proof of address: Utility bill or lease
Bank details: Account and routing number for direct deposit
What your co-signer needs:
Photo ID: Driver’s license, state ID or passport
Proof of income: Recent pay stubs, W-2 or tax return
Social Security number: Needed for the credit check
Proof of address: Utility bill or lease
Prequalification requirements and definitions of income can vary from bank to bank, so make sure you read the requirements closely.
Select a Lender and Fill Out an Application
Once you've shopped around for a lender that meets your needs, it's time to make a decision. The best lender will have the lowest rate and doesn't charge a lot of extra fees (application, origination or prepayment fees).
The personal loan approval process varies from a few hours to more than a week depending on the loan terms and lender. Find out how long the process takes with the lender you've selected so that you can plan your budget accordingly.
Learn More: How To Get a $20,000 Loan
What Happens if a Payment Is Missed?
A missed payment hurts both you and your co-signer. The lender reports the late payment to the credit bureaus — Equifax, Experian and TransUnion — under both names.
Here is what a missed payment or personal loan default can trigger.
Credit score drop: Both credit reports can lose points, and the late mark can stay for up to seven years.
Late fees: The lender may add a fee to the amount missed.
Collection calls: After 30 to 90 days, the lender may contact you and your co-signer to collect the debt.
Legal action: If the loan defaults, the lender can sue the co-signer for the full balance.
Wage garnishment: In some states, a court can order money taken from the co-signer’s paycheck.
How To Maintain Your Relationship With Your Co-Signer
Agreeing to be a co-signer is a big responsibility. If you miss a payment, the lender will come after your co-signer, who can be on the hook for payments and may see negative entries on their credit report.
Co-Signer Responsibilities vs. Rights
Responsibilities | Rights |
|---|---|
Repay the loan if the main borrower does not | Receive copies of loan documents |
Cover late fees and collection costs | Ask the lender for the current balance and payment history |
Accept a credit score impact tied to the loan | Be notified before the lender takes collection action in many states |
Stay on the loan until it is paid off or refinanced | Request a co-signer release if the lender offers one |
Report the debt on their own credit applications | Dispute errors on their credit report tied to the loan |
Handle tax reporting if any part of the debt is canceled | No access to or ownership of the loan funds |
Before you approach your co-signer, ask yourself:
1. What's the Payoff Plan?
Whether you have a co-signer or not, you should always have a plan to pay off the loan. But if you do have a co-signer, it's particularly important to make a plan together, as your ability to pay the loan off affects your co-signer's credit history.
2. Are You Borrowing More Than You Can Afford to Pay Back?
Check your finances to make sure you understand how much you can afford to pay toward your loan each month. Even though having a co-signer can help you qualify for a larger personal loan, you should only accept what you know you can pay back.
3. Can Your Relationship Survive?
Co-signing a loan can affect more than just your credit score — sometimes an entire relationship is at risk. Putting financial issues between two people can alter a relationship forever, for better or worse.
The stress of borrowing money can strain or break a relationship, or the bond and trust involved in repaying a loan can enhance it. Because paying off a personal loan is a multi-year commitment, make sure you and your co-signer have a solid relationship that can stand the test of time and have a history of open communication and honesty.
What To Do if You Can't Get a Co-Signer for Your Personal Loan
If you can't get a co-signer for your personal loan, you might still qualify for a smaller unsecured loan or a secured loan. Some lenders extend personal loans to people with poor or limited credit histories.
Without a co-signer, you might pay more in interest over the life of the loan, but you could consider taking out a loan on your own as an opportunity to build your credit history and FICO score. If you are successful, you could qualify for better loan terms in the future without ever having put someone else's credit at risk.
Learn More: How To Get a $40,000 Loan
FAQs About Applying for a Personal Loan With a Co-Signer
Does a co-signer help you get a lower interest rate?
A co-signer with strong credit can help you get a lower interest rate on a personal loan because the lender views the loan as less risky when a second person agrees to repay it.
Who can be a co-signer on a personal loan?
A co-signer on a personal loan can be any adult with strong credit and steady income who trusts you to repay the loan, such as a parent, sibling, spouse or close friend.
Does a co-signer need to be present at the application?
Not always. Many lenders let the co-signer complete their part of the application online with their own login, Social Security number and income details. Some lenders may ask for a signature in person or by a notary at closing.
What credit score does a co-signer need?
Most lenders look for a FICO score of 670 or higher. A score of 740 or above gives you the best shot at lower rates and higher loan amounts.
Can a co-signer be removed if the main borrower stops paying?
A co-signer can be removed from a personal loan in some cases, but only if the lender offers a co-signer release program or if you refinance the loan in your name alone.
How do you remove a co-signer from a personal loan?
You have three main options. You can ask the lender for a co-signer release after a set number of on-time payments, refinance the loan in your name only or pay the loan off in full. Not every lender offers a release, so check the loan agreement first.
Does being a co-signer show up on your credit report?
Co-signing a personal loan affects your credit because the loan shows up on the co-signer's credit report, and any late or missed payments can lower the co-signer's credit score.
Can you have more than one co-signer on a personal loan?
Most lenders allow only one co-signer per personal loan. A few may accept a co-borrower in addition to a co-signer, but this is rare.
Is a co-signer the same as a joint applicant?
A co-signer is not the same as a joint applicant because a co-signer does not receive any of the loan money, while a joint applicant, also called a co-borrower, shares both the funds and the responsibility to repay.
Key Terms
Co-signer: A person with strong credit who agrees to repay your loan if you can't, without receiving any of the funds.
Co-borrower: A joint applicant who shares access to the loan money and is equally responsible from day one.
Joint application: An application listing two borrowers' income and credit — what many lenders offer instead of a true co-signer.
FICO score: A credit score from 300 to 850; a "good" score of 670 or higher helps a co-signer qualify you.
Debt-to-income ratio (DTI): The share of gross monthly income going to debt payments, which lenders weigh alongside credit.
Origination fee: An upfront charge some lenders deduct from your proceeds, so you net less than you borrow.
Co-signer release: A lender program that removes the co-signer after a set number of on-time payments, if offered.
Soft credit check: A prequalification inquiry that previews your rate without affecting either credit score.
Sources
Federal Reserve: G.19 Consumer Credit
myFICO: What Is a Good Credit Score?
CFPB: What is a personal loan?
Summary generated by AI, verified by MoneyLion editors
Emily Gadd, CCC™, contributed to editing this article.
Photo credit: kate_sept2004 / Getty Images
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