How To Apply for a Personal Loan With a Co-Signer: The Best Steps To Take
If you're in the market for a personal loan but lack the credit history or a high enough credit score to qualify, you might want to consider applying with a co-signer.
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
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Key Takeaways
Can you get a personal loan with a co-signer? Yes — a co-signer with strong credit can help you qualify: They agree to repay the loan if you can't, without receiving any of the funds.
A co-signer differs from a co-borrower: A co-signer never accesses the money, while a co-borrower shares both the funds and repayment from day one.
Aim for a co-signer with a 670+ FICO score: A score above 740 gives the best shot at lower rates; lenders also weigh income, DTI and payment history.
A lower rate can save thousands: On a $10,000 loan over two years, dropping from 25% to 12% APR saves roughly $1,511 in interest.
Missed payments hit both parties: Late marks land on both credit reports and can stay for up to seven years.
A co-signer isn't always permanent: You may remove one through a lender's release program, a refinance or paying the loan off.
Summary generated by AI, verified by MoneyLion editors
What Is a Co-Signer?
A co-signer is a person with strong credit who agrees to repay your personal loan if you cannot, without receiving any of the loan money themselves.
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.
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 You Can Get With a Co-Signer
Many lenders let you add a co-signer to common personal loan types, including:
Debt consolidation loans
Home improvement loans
Medical loans
Wedding loans
Moving or relocation loans
Emergency expense loans
Auto repair loans
Personal Loan Lenders That Accept Co-Signers or Co-Borrowers
Not every lender allows co-signers or co-borrowers, so it helps to know which ones do. Lenders that commonly accept co-signers or co-borrowers on personal loans include:
Steps To Apply for a Personal Loan With a Co-Signer
Applying for a personal loan with a co-signer takes six steps.
Check your credit and your co-signer’s credit.
Compare lenders that allow co-signers.
Get preapproved to see your rate and terms.
Gather documents for both you and your co-signer.
Submit the full application together.
Review the loan agreement and sign.
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
To prequalify and find out your rates, you'll likely have to show proof of you and your co-signer's income, like pay stubs and bank statements. Some lenders might ask for documents like previous years' tax returns.
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 accessing the funds.
Co-borrower: Someone who applies with you, shares the loan funds and is equally responsible from day one.
Personal loan: A lump-sum loan repaid in fixed monthly installments, often unsecured.
FICO score: A credit score from 300 to 850; most lenders want a co-signer at 670 or higher.
Debt-to-income ratio (DTI): The share of monthly income going to debt payments, which lenders weigh for co-signers.
Co-signer release: A lender program that removes a co-signer after a set number of on-time payments.
Prequalification: A soft-credit-check estimate of your rate and terms that doesn't affect your score.
Annual percentage rate (APR): The yearly cost of borrowing, including interest and certain fees.
Sources
CFPB: What is a co-signer?
Federal Reserve: Consumer Credit (G.19)
myFICO: What is a good credit score?
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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