Can You Get a Personal Loan With a Co-Signer Easily?

Yes, you can get a personal loan with a co-signer if that person has good credit, low debt and steady income. Lenders look at your co-signer’s financial profile alongside yours, so a strong co-signer can help you qualify or lock in a lower rate.

What is a co-signer? A co-signer is a person who signs your loan agreement and agrees to pay the debt if you cannot, without receiving any of the loan money or owning what the loan pays for.

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If a co-signer has a good credit score and a solid credit history, you are more likely to be approved for your loan.

Find out how personal loans with a co-signer work, and whether it may be a good fit for you.

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Key Takeaways

• Can you get a personal loan with a co-signer? Yes — if that person brings strong credit, low debt and steady income: Lenders weigh your co-signer's profile alongside yours, so a strong one can help you qualify or lower your rate, though approval is never guaranteed.

• A co-signer helps most when your file is thin: Limited credit history, a low score or low income are the situations where a qualified co-signer moves the needle — but a recent bankruptcy or foreclosure can outweigh even a strong co-signer.

• Co-signer, co-borrower and guarantor aren't the same: A co-signer pays only if you stop and gets no ownership; a co-borrower shares the funds and payments from day one; a guarantor is pursued last, after all other collection efforts.

• Your co-signer's DTI matters: Below 36% is strong, 36% to 43% is borderline, and above 43% means many lenders won't accept them.

• A co-signer takes on real legal risk: Per the FTC, a co-signer is fully responsible for the debt — a lender can collect the entire balance from them without first pursuing you, and missed payments hit their credit.

• A strong co-signer can save thousands: On a $15,000 five-year loan, dropping from a 20% to a 10% APR cuts total interest from about $8,841 to $4,122 — a savings of roughly $4,719.

Summary generated by AI, verified by MoneyLion editors

Quick Take

• A co-signer is another individual who applies for a loan with you, which can increase your chances 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 get approved if they have bad credit or too much debt, or if you have a recent delinquency, such as bankruptcy or foreclosure.

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 much debt: If the co-signer is already highly leveraged, the lender will not view this 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

These three roles sound alike but carry different levels of responsibility. A co-signer promises to pay only if you stop paying, and does not share ownership of the funds. A co-borrower shares the loan with you from day one, splits the money and is equally responsible for every payment. A guarantor also backs the loan, but lenders usually go after a guarantor last, after they have tried every other option to collect from you.

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 are more likely to be approved.

• Consistent, stable income: The lender will look for a stable income history to ensure the co-signer can pay if the primary borrower is unable to.

Lenders use debt-to-income ratio (DTI) to judge how much of your monthly income already goes to debt. Here is how most personal loan lenders view a co-signer’s DTI.

• Below 36% — Strong. The co-signer looks financially healthy and adds real support to your application.

• 36% to 43% — Borderline. The co-signer may still be accepted, but the rate benefit could be smaller.

• Above 43% — Difficult. Many lenders will not accept a co-signer at this level.

How Applying With a Co-Signer Works

It’s pretty straightforward to apply for a personal loan with a co-signer:

1. Find a lender that allows for co-signers: Do a search for lenders that allow for co-signers.

2. Try to prequalify together with your co-signer: The company will do a soft credit check on you and the co-signer.

3. Submit a joint application: You and the co-signer will provide personal and financial details based on the application questions.

4. The lender will look at credit profiles: The lender will assess the credit profiles of both you and the co-signer.

5. 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.

6. Sign the agreement: If the terms work for both you and the co-signer, sign the agreement.

7. 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 how to use the funds.

• If you fail to pay for the loan, it may cause friction between you and the co-signer.

There are risks for the co-signer, too. According to guidance from the Federal Trade Commission (FTC), a co-signer assumes full legal responsibility for the debt. That means the lender can collect the entire balance from the co-signer without first attempting to collect from the primary borrower, and any missed payment can appear on the co-signer’s credit report. In some states, the lender can also garnish the co-signer’s wages or sue for the balance.

Lenders That Allow Co-Signers or Co-Borrowers

These lenders may allow you to apply with a co-signer:

How Much a Co-Signer Can Save You on a Personal Loan

Here’s a simple example. Say you apply for a $15,000 personal loan with a five-year term. On your own, your credit profile qualifies you for a 20% APR, which works out to about $23,841 in total payments — roughly $8,841 in interest. 

With a strong co-signer, you qualify for a 10% APR instead, which brings total payments down to about $19,122 — roughly $4,122 in interest. That is a savings of about $4,719 over the life of the loan, based on standard amortization for a fixed-rate personal loan.

4 Alternatives to Using a Co-Signer

If you don't meet the personal loan requirements and can't find a co-signer, you have 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 improving 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:

1. You can ask the lender for a release after you’ve shown you can make at least 12 to 36 months of consistent payments.

2. You can refinance the loan.

In both instances, you must provide proof that you make the payments yourself. 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:

Bottom Line

You can get a personal loan with a co-signer as long as that person brings strong credit, low debt and steady income to the application. A qualified co-signer can help you qualify, drop your APR and lower the total cost of the loan. Just remember that co-signing is a shared legal responsibility — if payments slip, both credit scores take the hit.

Getting a Personal Loan With a 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.

Key Terms

• Co-signer: Someone who signs your loan and agrees to pay if you can't, without receiving the funds or owning what the loan buys. Their credit and income help you qualify.

• Co-borrower: A joint borrower who shares both the loan funds and equal repayment responsibility from day one — a fit when two people borrow together.

• Guarantor: Someone who backs the loan but is pursued only after the lender has exhausted other ways to collect from you, carrying a lower credit impact than a co-signer.

• Debt-to-income ratio (DTI): The share of monthly income that goes toward debt. Lenders view a co-signer's DTI below 36% as strong and above 43% as difficult to accept.

• Soft credit check: The inquiry used in prequalification that previews rates for both you and your co-signer without affecting either score.

• Co-signer release: A lender option to remove a co-signer after you show 12 to 36 months of on-time payments and qualify on your own.

• Secured personal loan: A loan backed by collateral, such as savings or a home — an alternative if you can't find a co-signer.

• Adverse action notice: The explanation a lender must send if your co-signed application is denied.

Sources

• FTC: Cosigning a Loan FAQs 

• CFPB: Should I agree to co-sign someone else's loan? 

• myFICO: What's in my FICO Scores? 

• CFPB: What is a debt-to-income ratio? 

Summary generated by AI, verified by MoneyLion editors

Sarah Silbert contributed to the reporting for this article.

Elizabeth Constantineau, CFHC™, contributed to editing this article

Photo Credit: Moyo Studio / Getty Images