Money tips for everyday life
Can You Get a Personal Loan With a Cosigner?
If you’re exploring loan options but find that your current credit profile or income makes it difficult to qualify on your own, you might be wondering: can you have a cosigner on a personal loan? Adding a cosigner can be a strategic way to strengthen your application and potentially unlock better terms.
While not every lender offers this option, understanding how personal loans with cosigners work can help you decide if it is the right path for your financial needs.
How a Cosigner Helps You Get a Loan
A cosigner for a personal loan is a person—typically a family member or trusted friend—who agrees to share the legal responsibility of the debt with you. Will a cosigner help you get a loan? In many cases, yes. Because the lender considers the cosigner’s credit score and income alongside your own, their presence reduces the lender's risk.
This arrangement can make it easier to get a loan with a cosigner if you have:
- Limited credit history
- A lower credit score than required
- A debt-to-income ratio that is currently too high for a solo application
How to Get a Personal Loan With a Cosigner
If you’ve determined that you want to apply, the process for how to get a personal loan with a cosigner typically follows these steps:
- Find a willing cosigner: This person must have a strong credit profile and a steady income, as they are fully responsible for the loan if you cannot make payments.
- Verify lender requirements: Not all lenders accept cosigners. Before applying, ensure the specific loan product allows for cosigner personal loans.
- Check your rate: Most modern lenders allow you to check your rate without affecting your credit score. You will typically provide both your information and your cosigner’s details during this stage.
- Complete the application: If you find an offer that fits your budget, you and your cosigner will complete the full application and provide necessary verification documents.
Frequently Asked Questions
Can I get a loan with a cosigner if I have a lower credit score?
Yes, and “can I get a loan with a cosigner” is a common question for those with less than ideal credit. A cosigner with excellent credit can often help you qualify for a loan or a lower interest rate than you would receive on your own.
Do you need a cosigner for a personal loan?
You do not always need a cosigner for a personal loan. If your credit score and income meet the lender's requirements, you can apply as an individual. Cosigners are typically used to improve the chances of approval or to secure more favorable terms.
Can someone cosign a personal loan for any purpose?
Generally, yes. Personal loans with cosigners can be used for various purposes, such as debt consolidation, home improvements, or unexpected medical expenses, provided the use is compliant with the lender's terms.
Explore Your Options
If you’re ready to see what financing might look like for you, you can explore your options and compare potential terms. You can even check your rate for a personal loan through Upgrade with no impact to your credit score.
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.74%-35.99% and a 1.85%-9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For certain discounts, collateral may be required. Repayment terms from 24 to 84 months. For example, if you receive a $10,000 unsecured loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR and other terms of your loan may vary and you may not be presented with multiple offers. If offered, your loan terms, including your rate, will depend on credit score, credit usage history, loan amount, and other factors. Late payments or other fees, as noted in your Borrower Agreement, may increase the cost of your fixed rate loan. Certain loan offers may not be available in all states.
Upgrade is a financial technology company, not a bank. Personal loans issued by Upgrade's bank partners: https://www.upgrade.com/bank-partners/.
