When you need to borrow money but donâ€™t want to deal with the uncertainty of credit cards, a personal loan is a smart option to consider.
Not only do personal loans come with fixed interest rates, but they also come with fixed monthly payments and a fixed repayment period. With a fixed payment, youâ€™ll never end up with a monthly bill thatâ€™s higher than you thought it would be. A fixed repayment timeline also lets you know exactly when your loan will be paid off.
If youâ€™re on the fence about borrowing money, keep in mind that there are many reasons why a personal loan may be a viable option for you. Perhaps you want to consolidate high interest debt with a new loan that features a lower interest rate and better terms. Maybe you need to remodel your kitchen or fix your car that has been broken down for months. Whatever the reason, a personal loan offers a predictable way to borrow money without any surprises.
But what do you do if you canâ€™t get a personal loan on your own? A cosigner could help you qualify for funds. Hereâ€™s what you should consider before applying with a cosigner, plus personal loans that accept cosigners.
While personal loans offer a smart way to borrow money, not everyone can qualify. Lenders consider your income, employment status, debt-to-income ratio and your credit score before they approve you, which could be a problem if your finances arenâ€™t in the best shape.
If you donâ€™t have the time to improve your credit score before applying for a loan, a personal loan cosigner can help your application. A cosigner agrees to guarantee the loan if you stop making payments. A cosigner could be a family member or a close friend, but it needs to be someone with good credit for them to help you qualify for a loan.
Here are the pros and cons of getting a cosigner for your personal loan:
Before you apply for a personal loan with a cosigner, itâ€™s also important to note the difference between a cosigner and a co-borrower. Where a cosigner lends their good credit to your loan application and guarantees to repay your loan if you do not, a co-borrower is someone who shares in your obligation to repay money you borrow.
If you plan to take out a personal loan with your spouse and you each plan to make payments toward the loan, for example, your spouse would act as a co-borrower and not a cosigner. With that being said, itâ€™s possible you could benefit from having a co-borrower or a cosigner provided the other individual has good credit and the financial means to repay the loan.
A cosigner can help you qualify for a loan you may not be able to get on your own. Fortunately, there are a handful of companies that readily accept loans with more than one applicant or a cosigner who is willing to guarantee the loan.
To help you find the best loan options within this category, we compared lenders based on their interest rates, loan terms, borrowing limits and credit requirements. Here are some of the top personal loans you can get with a cosigner or a joint applicant.
Loan approval and actual loan terms depend on your ability to meet our standard credit criteria (including credit history, income and debts) and the availability of collateral. Loan amounts subject to state specific minimum or maximum size restrictions. Collateral offered must meet our criteria. Active duty military, their spouse or dependents covered by the Military Lending Act may not pledge any vehicle as collateral. CA minimum loan amount is $3,000. GA minimum loan amount is $1,500 for present customers and $3,100 for others.
To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.
Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
LightStream is a popular online lender that offers personal loans for almost any reason. Their personal loans come with a fixed interest rate, a fixed monthly payment and a fixed repayment timeline that dictates exactly when your loan will be paid off from Day One.
Although LightStream doesnâ€™t list a minimum credit score requirement, they do note that their loans are available for consumers with â€śgood credit.â€ť LightStream also allows people to apply for their loans with a joint applicant. The best part is, LightStream personal loans come with no fees â€” no origination fee, no application fee and no prepayment penalties for paying off your loan early.
LendingClub is another loan company that allows joint applicants to apply for personal loans. Unlike other lenders on this list, however, LendingClub is a peer-to-peer lender that gets its funds from other individuals who agree to invest in the platform.
LendingClub lets consumers borrow up to $40,000 for debt consolidation, home repairs, emergency expenses and many other purposes. Interest rates can be on the low side provided you have good or great credit since the lenderâ€™s lowest advertised rates start at 6.95%. However, LendingClub does offer personal loans to borrowers with credit scores as low as 600.
LendingClub also considers applicants with a maximum debt-to-income ratio of 40%, meaning that your monthly debt obligations cannot make up more than 40% of your monthly gross income.
Backed Personal Loans is a lender that is actually geared to consumers who need a cosigner to get a personal loan. This company refers to cosigners as â€śbackers,â€ť however, per the company name.
Backed offers special protections for individuals who agree to cosign on their loans. Unlike traditional personal loans that inform cosigners of a default after the fact, Backers personal loans offer the borrower and cosigner a 15-day grace period to keep a loan in good standing once a payment is late. Late fees arenâ€™t charged during this time, and the late payment wonâ€™t be reported to credit bureaus until the 15-day period has lapsed. Plus, the cosigner is informed of the late payment right away.
Backers personal loans do charge an origination fee that can be decreased substantially if you fill out your application with additional information and add a qualified cosigner. Backed requires a minimum credit score of 660, and it does exclude borrowers who have recent derogatory marks on their credit reports. Currently, Backed personal loans are only available for individuals who reside in the following states: New York, New Jersey, Florida, Arkansas, Arizona and West Virginia.
OneMain Financial is a personal loan company that offers higher interest rates than some of their competitors. However, OneMain does extend personal loans to borrowers with â€śfair creditâ€ť who may not be able to get a loan elsewhere.
Loan amounts are offered between $1,500 and $30,000 and repayment terms are available for up to five years. OneMain Financial also allows borrowers to apply for a loan with a cosigner, which could help you qualify for a lower interest rate if your credit is poor. Itâ€™s important to note, however, that will you will have to visit a physical OneMain Financial branch to close on your loan.
FreedomPlus is another personal loan company that focus on borrowers with less-than-stellar credit. Loan amounts are offered up to $40,000 and you can repay for up to five years. FreedomPlus does charge an origination fee from 0.00% – 5.00% of your loan amount, but they donâ€™t charge any penalties if you pay your loan off early.
While FreedomPlus doesnâ€™t list an exact minimum credit score to qualify, they do list a maximum debt-to-income ratio of 40%. FreedomPlus also allows co-borrowers on their loan applications, which can make it easier to qualify if you do not have the income or credit to qualify on your own.
Mariner Finance is another personal loan company that allows individuals to apply for a personal loan with a cosigner. This company does offer interest rates as high as 36.00% depending on your creditworthiness, but they do not list a minimum credit score to qualify. For that reason, Mariner Finance may be a good option for consumers who may need to pay a higher interest rate due to credit mistakes theyâ€™ve made in the past.
While Mariner Finance does have looser requirements to qualify for their loans, itâ€™s important to note that they only operate in 22 states: Alabama, Delaware, Florida, Georgia, Indiana, Illinois, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia and Wisconsin. Fees can vary on personal loans from Mariner Finance as well, so make sure to read the fine print and understand all fees before you move forward with one of their loan options.
While SoFi is mostly known for their private student loans and student loan refinancing options, this company also offers personal loans. SoFi personal loans are available for people in every state except for Mississippi, and they allow co-borrowers on the same loan application.
One big benefit of personal loans from SoFi is their lack of fees. This company doesnâ€™t charge an origination fee for their personal loans, nor do they charge prepayment fees or late fees. SoFi even has a program that allows you to pause your loan payments if you lose your job. The best part is, SoFi makes it possible to see if you could get approved for a loan without a hard inquiry on your credit report.
If you need a personal loan with a cosigner or a co-borrower, make sure to check out all the companies on this list. While we included some lenders that charge higher interest rates and fees, our list of top lenders for personal loans with a cosigners was created to include options that could work for borrowers with all credit ratings and financial situations.
As you compare loan options, make sure to read the fine print and compare loan terms, interest rates and fees. With enough research, youâ€™ll have the best shot at finding a personal loan that meets your needs â€” with or without a cosigner.
5.99% To 35.99% APR
7.24% To 15.24% APR
6.99% To 24.99% APR
3.34% To 16.99% APR
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