Best Personal Loans With a Cosigner in 2025

Get lower rates and better odds when you apply with a cosigner with good credit

Lauren Clifford, Author at LendingTree

Written by  Lauren Clifford

Amanda Push, Editor at LendingTree

Edited by  Amanda Push

Expert Verified

Updated
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Lender User rating APR Term Amount
Rocket Loans logo
Review coming soon
8.01% – 29.99% 36 to 60 months $2k –
$45k
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SoFi logo
Review coming soon
8.99% – 35.49% 24 to 84 months $5k –
$100k
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Upgrade logo
Review coming soon
7.99% – 35.99% 24 to 84 months $1k –
$50k
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Cosigner and co-borrower loans at a glance

Best for: Short-term, small co-borrower loans – First Tech Federal Credit Union

  • Save money on interest by borrowing as little as $2,000 (most loans start at $1,000+)
  • Terms start at 36 months (most loans start at 24 months)
  • Low interest rates
  • No fees
  • Need to become a member to get a loan
  • May need good or excellent credit to qualify
  • Only allows co-borrowers, not cosigners

If you need to borrow a small amount of money but don’t want to pay high credit card rates, check your rates with First Tech. First Tech offers some of the shortest and smallest loans on the personal loan market. The less you borrow and the sooner you pay it back, the less money you’ll pay in interest and the cheaper your loan will be.

The only way to know if you’ll qualify for a First Tech loan is to check your rates, since First Tech doesn’t share what credit score, income or other requirements you’ll need to get a loan. You also have to become a member of Rocket Loans , but First Tech makes it easy — you can apply for membership at the same time you apply for your loan.

You must meet at least one of the following criteria to join First Tech:

  • Employment: Work for a partnering employer
  • Family: Be related to a current Rocket Loans member
  • Residency: Reside in Lane County, Ore.
  • Membership: Become a member of the Computer History Museum or Financial Fitness Association (Rocket Loans may pay for your first year of membership, and you don’t have to maintain membership to keep your Rocket Loans account)

Best for: No-fee cosigner loans – Laurel Road

APR disclaimer

The following payment example depicts the APR, monthly payment and total payments made during the life of a personal loan with a single disbursement. All loan rates below are shown with the autopay discount (0.25%) and direct deposit discount (0.25%). The monthly payment for a $30,000 loan with a 60-month term and a fixed annual percentage rate (APR) between 12.95% – 25.03% would be $681.82 – $881.07 in monthly payments, with total payments between $40,909.47 – $52,864.05. Your actual interest rate may be different than the loan interest rates in these examples and will be based on term of loan, your financial history, and other factors, including your cosigner’s (if any) financial history. Lowest rates reserved for the most creditworthy borrowers. See SoFi.com/eligibility for details. Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000- $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

  • Allows cosigners (as opposed to the more common co-borrowers)
  • No fees
  • Low rates
  • 0.25% autopay discount
  • Likely need good or excellent credit to qualify
  • Need to do more paperwork if you’re borrowing more than $35,000

SoFi is one of the few major lenders that allows cosigners instead of co-borrowers for personal loans. The difference? Cosigners don’t have the right to the loan money like co-borrowers do, but they’re still responsible for paying the loan back if the main borrower stops making payments.

SoFi loans also come with terms that keep loan costs down. There are no fees, competitive interest rates and even a discount for signing up for autopay.

But you’ll have to fill out more paperwork if you need to borrow more than $35,000. Plus, SoFi only offers loans up to $100,000 if you’re using the money for debt consolidation, home improvement or a major purchase. Other loans are capped at $35,000.

SoFi doesn’t provide much insight into how it evaluates personal loan applications, but you must be at least the age of majority in your state (typically 18 or 19).

While SoFi doesn’t specify a minimum credit score, it does state that it’s able to offer low rates because it works with creditworthy borrowers. The lender may assess this creditworthiness by evaluating your debt-to-income ratio, employment, income and credit history.

Best for: Getting multiple discounts on co-borrower loans – Upgrade

APR disclaimer

Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 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 in your account 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 on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/.

  • Offers three discounts
  • Allows fair credit
  • Get money as soon as one business day
  • Charges an upfront fee of 1.85%-9.99% on every loan
  • High rates for borrowers with fair credit
  • Only allows co-borrowers, not cosigners Both co-borrowers and cosigners can help you qualify for a loan and get better rates. Co-borrowers have equal right to the loan money, while cosigners don’t.

If you’re applying with a co-borrower to save money with lower rates, see if you can save even more with one of Upgrade ’s discounts. You can get a discounted rate by signing up for autopay, putting up your car as collateral or using the money to consolidate debt.

Unlike some of the lenders on this list, Upgrade charges an upfront origination fee on every loan. Upgrade will keep this fee before sending you your loan money.

To qualify for a loan through Upgrade , you must meet the requirements below:

  • Age: Be at least 18 years old (19 in some states)
  • Citizenship: Be a U.S. citizen, permanent resident or live in the U.S. with a valid visa
  • Administrative: Have a valid bank account and email address
  • Credit score: 580+
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What is a cosigner?

A cosigner is a second person who signs a loan agreement. This person has equal legal responsibility for repaying the loan. They can be a friend, family member or another trusted person. 

Lenders take on less risk when two people are responsible for repayment, so getting a personal loan with a cosigner can make it much easier to qualify. This is especially true if the cosigner has good or excellent credit. 

If the original borrower can’t pay back the loan, the lender can collect payment from the cosigner.

Cosigner vs. co-borrower

The terms cosigner and co-borrower are sometimes used interchangeably, but there are important legal differences.

Co-borrowers have the right to access the borrowed money, while cosigners don’t. But cosigners and co-borrowers are both responsible for payments, which means that missed payments will put their credit at risk.

Cosigners

  • Responsible for payments
  • Credit affected by late or missed payments
  • Can’t access the borrowed money
  • Less common for personal loans

Example: Parent cosigners don’t have the right to access student loan money marked for their child’s school expenses.

Co-borrowers or co-applicants

  • Responsible for payments
  • Credit affected by late or missed payments
  • Can access borrowed money
  • More common for personal loans

Example: If you and your spouse take out a home improvement loan to pay for a kitchen remodel, you can both legally access the funds at any time.

Is it better to get a co-borrower or a cosigner?

Most lenders only offer one option or the other, if they allow co-applications at all. The best way to know which option is better for you is to prequalify for a joint or cosigned loan with several lenders and choose the offer with the lowest rates and best terms for you. 

What to know about using a cosigner

Applying for a personal loan with a cosigner comes with additional hoops to jump through. Here’s what you need to know.

  • Cosigner qualifications
    Most lenders require that both applicants meet their minimum eligibility requirements. Lenders will consider factors like income, credit score and credit history. Some lenders may even require that co-applicants live at the same address.
  • Application timeline
    Using a cosigner or co-borrower may add extra time to the personal loan application process, since the lender will be evaluating two applicants instead of just one.
  • Cosigner release
    Lenders may allow you to release your cosigner from your loan contract after a certain period of time and a history of on-time payments. If your lender doesn’t offer cosigner release, consider refinancing your loan instead.

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Risks of using a cosigner

Before you decide to cosign a personal loan, it’s important to know about the downsides. Here’s what you need to know about the risks of using a co-applicant on a loan:

Damage to credit

Each applicant is legally responsible for the loan, so missing payments or going into default will hurt the credit of both parties.

Legal consequences

If you stop making payments, your debt will eventually go to collections and one or both of you could be sued by a debt collector.

Hard credit pull

Lenders typically run a hard credit inquiry when you apply for a loan. This can cause a small, temporary dip in the credit scores of both the original borrower and the cosigner.

Harder to qualify for future loans or credit

Cosigning a loan can increase your debt-to-income ratio, which may make it difficult to take out more credit until the cosigned loan is paid off.

Strained relationship

If you have trouble repaying a loan, financial repercussions may not be the only fallout. Your relationship with your cosigner could suffer as well.

Frequently asked questions

Cosigners can help you get lower rates, more money and better odds of approval — but only if your cosigner has good or excellent credit.

Yes, adding a cosigner increases your odds of approval. Cosigners lower the lender’s risk, since two people are accountable for repayment instead of just one. If your cosigner has good credit and a reliable credit history, this can make it even easier to qualify for a loan.

The credit score you need for a personal loan depends on the lender, but aim to have a cosigner with a credit score of 670 or higher. This can make it easier not only to get approved for a personal loan but also to get better offers that can save you money.

Consider getting a personal loan with a cosigner if you want:

  • Better approval odds
  • A large loan
  • Lower interest rates

Note that your cosigner will need good or excellent credit to help you achieve these goals.

Missing payments will damage both your credit score and your cosigner’s. If neither of you make payments, your lender will eventually send your loan to a collection agency. 
 
Consider debt relief options if you’re struggling to make payments.

Our methodology

We reviewed more than 30 lenders to determine the best six personal loans with a cosigner or co-borrower. To make our list, lenders must offer cosigner or co-borrower loans with competitive annual percentage rates (APRs). According to our standardized rating system, the best cosigner loans come from First Tech Federal Credit Union, Laurel Road, PenFed Credit Union, Prosper, SoFi and Upgrade. We prioritized lenders based on the following factors:

Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.

Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.

Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

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