Getting a Personal Loan with a Cosigner: What You Need to Know

If you’re considering taking out a personal loan but are worried about qualifying on your own, getting a personal loan with a cosigner may be a good option. A cosigner can help you get approved for a loan and potentially secure better rates and terms. However, there are important factors to consider before asking someone to cosign a personal loan with you.

In this comprehensive guide, we’ll cover everything you need to know about personal loans with cosigners, including:

What a cosigner does
The benefits and risks of using a cosigner
How to choose a cosigner
Alternatives to cosigned personal loans
Top lenders that offer personal loans with cosigners

What is a Cosigner on a Personal Loan?

A cosigner is someone who agrees to take legal responsibility for repaying a loan if the primary borrower is unable to make payments. The cosigner essentially acts as a guarantor for the loan, giving the lender additional assurance that the debt will be repaid.

When you apply for a personal loan with a cosigner, the lender will evaluate both your credit history and financial profile as well as your cosigner’s. Having a creditworthy cosigner can significantly boost your chances of loan approval and help you qualify for better rates and terms.

Responsibilities of a Personal Loan Cosigner

If you use a cosigner on your personal loan, they will be taking on significant responsibility. Here are the key things a cosigner agrees to:

Take full legal responsibility for repaying the loan if you default
Have the loan appear on their credit report
Potentially have their credit score impacted if payments are missed
Be legally obligated to repay the full loan amount if you can’t

It’s crucial that both you and your potential cosigner fully understand these responsibilities before moving forward with a cosigned loan.

Benefits of Getting a Personal Loan with a Cosigner

Using a cosigner on your personal loan application can provide several significant benefits:

1. Higher Chance of Approval

If you have limited credit history or a low credit score, adding a cosigner with strong credit can dramatically increase your odds of getting approved for a personal loan. Lenders view cosigned loans as less risky.

2. Lower Interest Rates

A creditworthy cosigner may help you qualify for lower interest rates than you could get on your own. Even a small reduction in APR can lead to substantial savings over the life of the loan.

3. Higher Loan Amounts

Lenders may be willing to approve you for a larger loan amount with a cosigner, since there’s additional assurance the loan will be repaid.

4. Build Credit History

Making on-time payments on a cosigned personal loan can help you establish a positive credit history and improve your credit score over time.

Risks and Drawbacks of Cosigned Personal Loans

While there are benefits to getting a personal loan with a cosigner, there are also some potential downsides to consider:

1. Risk to the Cosigner

The cosigner is putting their own credit and finances on the line. If you miss payments or default, it will negatively impact their credit score and they’ll be on the hook for repaying the loan.

2. Potential Relationship Strain

Money issues can strain even the closest relationships. If you have trouble repaying the loan, it could damage your relationship with your cosigner.

3. Harder for Cosigner to Get Other Loans

The cosigned loan will show up on your cosigner’s credit report and impact their debt-to-income ratio. This may make it more difficult for them to qualify for other loans or lines of credit.

4. Limited Loan Options

Not all lenders offer cosigned personal loans. Your options may be more limited compared to applying individually.

How to Choose a Cosigner for a Personal Loan

If you decide a cosigned personal loan is right for you, choosing the right cosigner is crucial. Here are some key factors to consider:

Strong Credit History

Look for a cosigner with a good to excellent credit score (typically 700+) and a solid credit history. The stronger their credit profile, the more they can help your application.

Stable Income

Your cosigner should have steady, reliable income and a low debt-to-income ratio. This shows they have the means to repay the loan if needed.

Trustworthy Relationship

Choose someone you have a close, trusting relationship with – often a family member or very close friend. Open communication is key.

Understands the Responsibility

Make sure your potential cosigner fully grasps their legal and financial obligations before agreeing.

Top Lenders Offering Personal Loans with Cosigners

If you’re looking to get a personal loan with a cosigner, here are some of the top lenders to consider:

Lender	Loan Amounts	APR Range	Min. Credit Score
SoFi	$5,000 – $100,000	8.99% – 23.43%	680
LightStream	$5,000 – $100,000	7.99% – 23.99%	660
Upgrade	$1,000 – $50,000	8.49% – 35.97%	560
Prosper	$2,000 – $50,000	6.99% – 35.99%	640

According to a recent Experian article, some lenders may have specific requirements for cosigners, such as a minimum credit score of 700 or residency in the same state as the primary borrower. Be sure to check each lender’s specific cosigner criteria.

Alternatives to Getting a Personal Loan with a Cosigner

If you’re unable to find a suitable cosigner or prefer not to use one, there are other options to consider:

1. Secured Personal Loans

Some lenders offer secured personal loans that use an asset (like a vehicle or savings account) as collateral. These may be easier to qualify for without a cosigner.

2. Credit-Builder Loans

These small loans are designed to help build credit. The loan amount is held in a savings account while you make payments to build payment history.

3. Peer-to-Peer Lending

P2P lending platforms match borrowers with individual investors looking for returns. While there’s no cosigner, these loans may have higher rates than traditional lenders.

4. Credit Unions

Credit unions often offer personal loans with more flexible underwriting criteria and lower fees compared to larger banks. Consider joining a credit union in your area.

Visit Your Local Loan Facility: QuickCash Loans in Downtown City

Need quick access to funds? Head over to QuickCash Loans, located at 123 Main Street in Downtown City. Whether you’re looking for a personal loan or need assistance with a co-signer, our local branch offers personalized service and fast approval processes right here in the heart of the city.

Contact Information:
Phone: +1-800-555-1234
Email: support@quickcashloans.com

Advantages of Visiting the Physical Location

Personalized Service: Speak directly with our loan specialists who can provide tailored advice based on your financial situation.
Same-Day Approval: Many applicants receive approval and funding within a single visit, making it easier to manage unexpected expenses.
Co-Signer Assistance: Our team will guide you through the process of adding a co-signer if needed, ensuring all requirements are met for quick loan disbursement.

User Reviews

\”I visited QuickCash Loans in Downtown City last week, and I was pleasantly surprised by how efficiently they handled my application. The staff were friendly and explained everything clearly. My funds arrived the same day!\” — Sarah R., July 2025

\”Needed a loan urgently due to an unexpected car repair. QuickCash Loans made the process seamless, even with me needing a co-signer. They walked us through each step and got everything sorted out quickly.\” — John D., June 2025

\”I’ve used QuickCash Loans for two different loans now, both times in their Downtown City branch. Each visit has been hassle-free, with helpful staff who take the time to understand your financial needs.\” — Emily T., May 2025