Can You Get a Personal Loan With a Co-Signer Easily?
You can get a personal loan with a co-signer, but it isn’t a guarantee. A lender will look at a co-signer’s credit, debt-to-income (DTI) ratio and income to determine if you’ll get approved. In situations where a co-signer has a good credit score and a solid credit profile, there are high chances you will get approved for your loan.
Find out how personal loans work with a co-signer and whether it may be a good fit for you.
Key Takeaways
Getting a personal loan with a co-signer is possible but not guaranteed. The lender will still evaluate the co-signer's credit score, debt-to-income (DTI) ratio and income before making a decision.
A strong co-signer can meaningfully lower your costs. Borrowers who add a co-signer with a 760 credit score instead of applying alone with a 580 score could pay a rate around 10% vs. 32% — a difference of roughly $4,068 in interest on a $10,000 loan over three years.
A co-signer takes on legal responsibility for the debt without gaining any ownership rights, so missed payments will hurt both your credit and theirs.
A co-signer won't overcome every obstacle. Recent bankruptcies, foreclosures, or a co-signer who carries too much debt or has bad credit can still result in a denial.
If you can't find a co-signer, you have options: You could apply with a co-borrower, work on improving your credit score, try a secured personal loan, or request a smaller loan amount.
Summary generated by AI, verified by MoneyLion editors
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.
Quick Take
A co-signer is another individual who applies for a loan with you, so you have a better chance of approval.
You can get a personal loan with a co-signer, but it’s not guaranteed.
A co-signer is responsible for the debt but doesn’t have ownership rights.
If you default on the loan, it will impact the co-signer’s credit.
A co-signer will not help you with approval if they have bad credit or too much debt, or if you have a recent delinquency, like bankruptcy or foreclosure.
What Is a Co-Signer?
A co-signer is an individual — family member or friend — who puts their name on a loan application to help you get approved. The co-signer doesn’t have any ownership rights but is responsible for the debt.
When a Co-Signer Helps You Get Approved
Your credit history is thin: If your co-signer has a positive and long credit history, it can help you get approved for the loan.
You have a low credit score: A co-signer with a high credit score can help you get approved.
Your income is too low: If your income is lower, your co-signer’s income can boost your chances of approval.
When a Co-Signer Doesn’t Help
You have past delinquencies: If you have a recent foreclosure or bankruptcy, a co-signer may not be able to help.
Your co-signer has too many debts: If the co-signer is already leveraged with too much debt, the lender will not look at this too favorably.
Your co-signer has bad credit: A co-signer with bad credit will not help with approval.
Co-Signer vs. Co-Borrower vs. Guarantor
A co-signer, co-borrower and a guarantor can all be part of the loan, but their roles differ in what they own. Here are the differences:
Feature | Co-Signer | Co-Borrower | Guarantor |
|---|---|---|---|
Ownership | None, no legal right to ownership | Yes, name is on the deed | None, no legal right to ownership |
When to pay | Immediately — when the primary buyer fails to make the payment | Immediately — both the borrower and the co-borrower are responsible for debt | Only if the lender has looked at all ways to collect the debt, do they reach out to the guarantor |
Credit impact | High | High | Lower |
What Does a Co-Signer Need To Qualify?
Adding a co-signer is intended to help the borrower get approved for the loan. Here’s what a co-signer will need to qualify for the loan:
A good credit score: Scores of 670 or higher will have greater chances of approval.
Consistent, stable income: The lender will look for a stable income history to make sure the co-signer can pay if the primary borrower is unable to pay.
A low DTI ratio: You can calculate DTI by taking your gross monthly income and dividing it by your monthly debt payments. Once you have that number, multiply it by 100. Here are the thresholds:
36% or higher: Strong
37% to 43%: Borderline
43%: Approval becomes difficult
How Applying With a Co-Signer Works
It’s pretty straightforward to apply for a loan with a co-signer:
Find a lender that allows for co-signers: Do a search for lenders that allow for co-signers.
Try to prequalify together with your co-signer: The company will do a soft credit check on you and the co-signer.
Submit a joint application: You and the co-signer will provide personal and financial details based on the application questions.
The lender will look at credit profiles: The lender will assess the credit profiles of both you and the co-signer.
The lender will either approve or decline your application: If approved, review the annual percentage rate (APR), monthly payment, fees and repayment schedule for the loan.
Sign the agreement: If the terms work for both you and the co-signer, sign the agreement.
Receive the funds and begin repayment: The primary borrower receives the funds, but both the borrower and co-signer are responsible for making payments.
What Documents You’ll Need
When applying with a co-signer, lenders will review financial details from both parties:
If You’re the Borrower
Driver’s license or passport
Pay stubs, W-2’s or tax returns
Employment information
Bank account details
Social Security number
List of current debts and expenses
If You’re the Co-Signer
Driver’s license or passport
Proof of income
Employment details
Social Security number
Credit history and financial information
Risks of Using a Co-Signer
There are certain risks of using a co-signer for the borrower:
Having a co-signer may push you to take on more debt.
You may lose your independence because the co-signer may tell you what to do with the funds.
If you fail to pay for the loan, it may cause friction between you and the co-signer.
Lenders That Allow Co-Signers
These lenders may allow you to apply with a co-signer:
Lender | Allows Co-Signer | Allows Joint Application | Minimum Credit Score | Loan Amount Range |
|---|---|---|---|---|
Yes | Yes | 680 or up | $5,000 to $100,000 | |
Yes | Yes | It varies, but is based on primary borrower’s profile | $1,500 to $30,000 | |
Yes | Often available | Flexible and may work with lower scores | Varies |
Quick Example: Cost and Approval Impact
Here’s a simple example to show how adding a co-signer can affect both approval and cost:
Without a Co-Signer
A borrower with a 580 credit score applies for a $10,000 loan over three years. With fair credit, approval may be difficult, and if approved, the borrower could receive a high interest rate of around 32%.
Monthly payment: $435
Total interest paid: $5,660
With a Co-Signer
If the borrower adds a co-signer with a 760 credit score, they may qualify for a much lower rate — around 10%.
Monthly payment: $322
Total interest paid: $1,592
Total impact: Adding a co-signer could save about $4,068 in interest and reduce the monthly payment by $113.
4 Alternatives to Using a Co-Signer
If you don't meet the personal loan requirements and you aren't able to find a co-signer, you have some other options.
1. Consider Applying With a Co-Borrower
Unlike a co-signer, a loan co-borrower shares access to the loan funds, so they're not just signing on to take responsibility for repayment in your stead.
A co-borrower should be someone you trust, and make an agreement in writing for how you'll split up the loan funds and payments.
2. Improve Your Credit Score Before You Apply
If you're new to credit and wondering how your credit score is calculated, several factors weigh in:
Payment history: 35%
Credit utilization: 30%
Credit history length: 15%
Credit mix: 10%
New credit inquiries: 10%
Some of these take time to build up, but your best bet for increasing your credit score is to make on-time payments and pay off your debt.
3. Try a Secured Personal Loan
You could also try applying for a secured personal loan, which uses collateral like cash in a savings account or even the home you own.
Since you're putting up collateral, the lender may be more willing to extend you the funds even if your credit is poor.
4. Borrow a Smaller Amount
Consider borrowing a smaller amount than you originally intended if you're struggling to get approved for a personal loan. Smaller loans are generally easier to get approved for.
Can You Remove a Co-Signer Later?
You can remove a co-signer in the future. Here are the ways you can do so:
You can ask the lender for a release after you’ve shown that you can make at least 12 to 36 months' worth of consistent payments.
You can refinance the loan.
In both instances, you must provide proof that you make the payments on your own. The lender will determine if you are qualified to do so based on your own credit and debt-to-income ratio.
Pros and Cons of a Co-Signer
A co-signer can help you qualify for a loan, but there are both benefits and risks to consider:
Pros | Cons |
|---|---|
Easier approval if you have low credit | Co-signer is legally responsible if you can’t pay |
May get a lower interest rate | Missed payments will hurt your credit and co-signer’s credit |
Can qualify for a larger loan amount | Co-signer may have trouble qualifying for their own loans |
Helps build credit if you pay on time | If problems arise with the loan, it could damage your relationship |
Headline: Can You Get a Personal Loan With a Co-Signer Easily?Keyword: can you get a personal loan with a cosignerArticle Text: You can get a https://www.moneylion.com/personal-loans with a co-signer, but it isn’t a guarantee. A lender will look at a co-signer’s credit, debt-to-income (DTI) ratio and income to determine if you’ll get approved. In situations where a co-signer has a good credit score and a solid credit profile, there are high chances you will get approved for your loan. Find out how personal loans work with a co-signer and whether it may be a good fit for you.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. drag embedded entry Syndication Widget publishedSlider Widget-Features - Revops ProspectsQuick Take A co-signer is another individual who applies for a loan with you, so you have a better chance of approval. You can get a personal loan with a co-signer, but it’s not guaranteed. A co-signer is responsible for the debt but doesn’t have ownership rights. If you default on the loan, it will impact the co-signer’s credit. A co-signer will not help you with approval if they have bad credit or too much debt, or if you have a recent delinquency, like bankruptcy or foreclosure. What Is a Co-Signer? A co-signer is an individual — family member or friend — who puts their name on a loan application to help you get approved. The co-signer doesn’t have any ownership rights but is responsible for the debt. When a Co-Signer Helps You Get Approved Your credit history is thin: If your co-signer has a positive and long credit history, it can help you get approved for the loan. You have a low credit score: A co-signer with a high credit score can help you get approved. Your income is too low: If your income is lower, your co-signer’s income can boost your chances of approval. When a Co-Signer Doesn’t Help You have past delinquencies: If you have a recent foreclosure or bankruptcy, a co-signer may not be able to help. Your co-signer has too many debts: If the co-signer is already leveraged with too much debt, the lender will not look at this too favorably. Your co-signer has bad credit: A co-signer with bad credit will not help with approval. Co-Signer vs. Co-Borrower vs. Guarantor A co-signer, co-borrower and a guarantor can all be part of the loan, but their roles differ in what they own. Here are the differences: Feature Co-Signer Co-Borrower Guarantor Ownership None, no legal right to ownership Yes, name is on the deed None, no legal right to ownership When to pay Immediately — when the primary buyer fails to make the payment Immediately — both the borrower and the co-borrower are responsible for debt Only if the lender has looked at all ways to collect the debt, do they reach out to the guarantor Credit impact High High Lower What Does a Co-Signer Need To Qualify? Adding a co-signer is intended to help the borrower get approved for the loan. Here’s what a co-signer will need to qualify for the loan: A good credit score: Scores of 670 or higher will have greater chances of approval. Consistent, stable income: The lender will look for a stable income history to make sure the co-signer can pay if the primary borrower is unable to pay. A low DTI ratio: You can calculate DTI by taking your gross monthly income and dividing it by your monthly debt payments. Once you have that number, multiply it by 100. Here are the thresholds: 36% or higher: Strong 37% to 43%: Borderline 43%: Approval becomes difficult How Applying With a Co-Signer Works It’s pretty straightforward to https://www.moneylion.com/learn/personal-loans/get-a-loan/how-to-apply-for-a-personal-loan-online with a co-signer: Find a lender that allows for co-signers: Do a search for lenders that allow for co-signers. Try to prequalify together with your co-signer: The company will do a soft credit check on you and the co-signer. Submit a joint application: You and the co-signer will provide personal and financial details based on the application questions. The lender will look at credit profiles: The lender will assess the credit profiles of both you and the co-signer. The lender will either approve or decline your application: If approved, review the annual percentage rate (APR), monthly payment, fees and repayment schedule for the loan. Sign the agreement: If the terms work for both you and the co-signer, sign the agreement. Receive the funds and begin repayment: The primary borrower receives the funds, but both the borrower and co-signer are responsible for making payments. What Documents You’ll Need When applying with a co-signer, lenders will review financial details from both parties: If You’re the Borrower Driver’s license or passport Pay stubs, W-2’s or tax returns Employment information Bank account details Social Security number List of current debts and expenses If You’re the Co-Signer Driver’s license or passport Proof of income Employment details Social Security number Credit history and financial information Risks of Using a Co-Signer There are certain risks of using a co-signer for the borrower: Having a co-signer may push you to take on more debt. You may lose your independence because the co-signer may tell you what to do with the funds. If you fail to pay for the loan, it may cause friction between you and the co-signer. Lenders That Allow Co-Signers These lenders may allow you to apply with a co-signer: Lender Allows Co-Signer Allows Joint Application Minimum Credit Score Loan Amount Range https://www.moneylion.com/learn/personal-loans/reviews/sofi-personal-loans Yes Yes 680 or up $5,000 to $100,000 https://www.moneylion.com/learn/personal-loans/reviews/one-main-financial-personal-loans Yes Yes It varies, but is based on primary borrower’s profile $1,500 to $30,000 https://www.moneylion.com/learn/personal-loans/rates/best-credit-unions-for-personal-loans Yes Often available Flexible and may work with lower scores Varies Quick Example: Cost and Approval Impact Here’s a simple example to show how adding a co-signer can affect both approval and cost: Without a Co-Signer A borrower with a 580 credit score applies for a $10,000 loan over three years. With fair credit, approval may be difficult, and if approved, the borrower could receive a high interest rate of around 32%. Monthly payment: $435 Total interest paid: $5,660 With a Co-Signer If the borrower adds a co-signer with a 760 credit score, they may qualify for a much lower rate — around 10%. Monthly payment: $322 Total interest paid: $1,592 Total impact: Adding a co-signer could save about $4,068 in interest and reduce the monthly payment by $113. 4 Alternatives to Using a Co-Signer If you don't meet the https://www.moneylion.com/learn/personal-loans/get-a-loan/personal-loan-requirements and you aren't able to find a co-signer, you have some other options.1. Consider Applying With a Co-Borrower Unlike a co-signer, a loan co-borrower shares access to the loan funds, so they're not just signing on to take responsibility for repayment in your stead. A co-borrower should be someone you trust, and make an agreement in writing for how you'll split up the loan funds and payments. 2. Improve Your Credit Score Before You Apply If you're new to credit and wondering how your credit score is calculated, several factors weigh in: Payment history: 35% Credit utilization: 30% Credit history length: 15% Credit mix: 10% New credit inquiries: 10% Some of these take time to build up, but your best bet for increasing your credit score is to make on-time payments and pay off your debt. 3. Try a Secured Personal Loan You could also try applying for a secured personal loan, which uses collateral like cash in a savings account or even the home you own. Since you're putting up collateral, the lender may be more willing to extend you the funds even if your credit is poor. 4. Borrow a Smaller Amount Consider borrowing a smaller amount than you originally intended if you're struggling to get approved for a personal loan. Smaller loans are generally easier to get approved for. Can You Remove a Co-Signer Later? You can remove a co-signer in the future. Here are the ways you can do so: You can ask the lender for a release after you’ve shown that you can make at least 12 to 36 months' worth of consistent payments. You can refinance the loan. In both instances, you must provide proof that you make the payments on your own. The lender will determine if you are qualified to do so based on your own credit and debt-to-income ratio. Pros and Cons of a Co-Signer A co-signer can help you qualify for a loan, but there are both benefits and risks to consider: Pros Cons Easier approval if you have low credit Co-signer is legally responsible if you can’t pay May get a lower interest rate Missed payments will hurt your credit and co-signer’s credit Can qualify for a larger loan amount Co-signer may have trouble qualifying for their own loans Helps build credit if you pay on time If problems arise with the loan, it could damage your relationship Co-Signer FAQs Can you get denied even with a co-signer? A co-signer isn’t a guarantee that you’ll get a loan. The lender will look at a co-signer’s credit, DTI ratio and income, and will make their own judgment call. Is a co-borrower the same as a co-signer? No, a co-borrower and a co-signer aren’t the same. A co-borrower has the same ownership rights as the primary borrower. However, a co-signer has no ownership rights but is responsible for the debt. Can you remove a co-signer later? Yes, you can remove a co-signer by refinancing your loan or securing a release from the lender. You will also have to prove that you can pay the loan on your own. How long does approval take with a co-signer? It usually takes an additional one or two weeks to get approval. Sarah Silbert contributed to the reporting for this article. Photo Credit: Moyo Studio / Getty Images
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Key Takeaways
Getting a personal loan with a co-signer is possible
but not guaranteed — the lender will still evaluate the co-signer's credit score, debt-to-income (DTI) ratio and income before making a decision.
A strong co-signer can meaningfully lower your costs:
borrowers who add a co-signer with a 760 credit score instead of applying alone with a 580 score could pay a rate around 10% vs. 32% — a difference of roughly $4,068 in interest on a $10,000 loan over three years.
A co-signer takes on legal responsibility for the debt
without gaining any ownership rights, so missed payments will hurt both your credit and theirs.
A co-signer won't overcome every obstacle
— recent bankruptcies, foreclosures, or a co-signer who carries too much debt or has bad credit can still result in a denial.
If you can't find a co-signer, you have options:
you could apply with a co-borrower, work on improving your credit score, try a secured personal loan, or request a smaller loan amount.
<span style="font-size:smaller">Summary generated by AI, verified by MoneyLion editors</span>
Key Terms
Co-signer: A person — typically a family member or friend — who adds their name to a loan application to help the primary borrower qualify. They're legally responsible for the debt if the borrower doesn't pay, but have no ownership rights over the loan funds.
Co-borrower: A joint applicant who shares equal responsibility for repaying the loan and has the same ownership rights as the primary borrower — unlike a co-signer, who has no ownership stake.
Guarantor: A third party who agrees to cover a loan only after the lender has exhausted all other collection efforts. Because the guarantee kicks in later in the process, the credit impact is generally lower than that of a co-signer.
Debt-to-income ratio (DTI): Your total monthly debt payments divided by your gross monthly income, expressed as a percentage. Lenders use DTI to gauge your ability to manage new loan payments; a ratio above 43% can make approval difficult.
Annual percentage rate (APR): The yearly cost of borrowing expressed as a percentage, including the interest rate and any applicable fees. A lower APR means less paid over the life of the loan.
Credit score: A three-digit number — typically ranging from 300 to 850 — that reflects your creditworthiness based on factors such as payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%) and new credit (10%).
Secured personal loan: A loan backed by collateral such as savings or property. Because the lender has recourse if you don't pay, they may be more willing to approve borrowers with limited or poor credit.
Prequalification: A preliminary review that uses a soft credit check — one that doesn't affect your credit score — to give you estimated loan terms before you submit a full application.
Sources:
myFICO: How Are FICO Scores Calculated?
Summary generated by AI, verified by MoneyLion editors
Co-Signer FAQs
Can you get denied even with a co-signer?
A co-signer isn’t a guarantee that you’ll get a loan. The lender will look at a co-signer’s credit, DTI ratio and income, and will make their own judgment call.
Is a co-borrower the same as a co-signer?
No, a co-borrower and a co-signer aren’t the same. A co-borrower has the same ownership rights as the primary borrower. However, a co-signer has no ownership rights but is responsible for the debt.
Can you remove a co-signer later?
Yes, you can remove a co-signer by refinancing your loan or securing a release from the lender. You will also have to prove that you can pay the loan on your own.
How long does approval take with a co-signer?
It usually takes an additional one or two weeks to get approval.
Sarah Silbert contributed to the reporting for this article.
Photo Credit: Moyo Studio / Getty Images
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