When you are facing a crisis or feeling swallowed by debt, a personal loan may help you pay off bills, get out of a hard financial situation, or pay for much-needed home repairs. However, unless you have a good credit score, many lenders may not approve your loan application.
In these situations, some lenders will allow a cosigner to become involved. This person, who often is a close friend or family member, offers their assets and financial information on the loan application so that you can qualify. However, they also are liable if you default on the loan, so it’s vital that you are sure you can make payments in full and on time.
If you are interested in exploring personal loans that allow for cosigners, you may consider these potential lenders and resources.
LendingTree’s personal loan tool can give you an idea of what kind of loan you qualify for, providing a list of personal loan options from lenders based on your creditworthiness. (Disclosure: Student Loan Hero is an affiliate of LendingTree.) If you don’t qualify for a loan or are interested in loans with better terms, your potential cosigner also can enter their information for a new set of loan options.
Here’s are the best personal loans that allow for a consigner.
LightStream allows potential borrowers to apply for loans with a joint applicant, who can be a spouse, domestic partner or other individual. Applicants with a poor financial history can rely on the income or assets of the joint applicant, or cosigner, to qualify for a loan.
Personal loans, which LightStream allows applicants to use for “almost anything,” range from $5,000 to $100,000. The company is clear that loans only are awarded to applicants with good credit, but bringing a cosigner into the equation can make that achievable.
With few exceptions, LightStream loans can be used for almost any financial need. That means you can pay for a wedding, repair a house, consolidate debt or buy a boat with your loan, as long as you specify the use on your loan application. LightStream loans may not be used to finance an existing LightStream loan, pay for college or related educational expenses, or finance loans used for those purposes. LightStream also doesn’t lend to businesses.
LightStream offers low interest rates on personal loans, with APRs ranging from 3.99% – 16.99% with terms between 24 to 144 months. However, the lender is clear that applicants or cosigners must have good credit. While LightStream doesn’t specify what that means, a credit score above 700 generally is considered good.
- No fees
- Low, fixed interest rates
- Guarantees $100 to borrowers who aren’t satisfied with their loan experience
- Same-day loan funding
- Good to excellent credit score required
- Application triggers a Hard Pull on credit score
LightStream is an excellent choice for applicants or cosigners with a good credit score and solid credit history. With a qualified cosigner, applicants who don’t have outstanding credit can receive a low-interest, no-fee loan they can use for almost anything.
LendingClub offers personal loans up to $40,000 and a quick, online application process. This lender was one of the first to implement peer-to-peer lending, which means that it connects loan applicants directly with individuals or institutions that are interested in lending the money. Without a bank as a middleman, this process saves money and allows LendingClub to offer lower rates.
When you apply for a loan through LendingClub, the lender may recommend that you add a co-borrower to your application to qualify for the loan. A joint application will increase your chances for approval.
The LendingClub loan application process takes about seven days, and it can be completed online — even from your phone. APRs range from 6.95% to 35.89% for loans of either 36 or 60 months, and applicants who typically get the lowest rates have high credit scores, a long history of credit with “significant successful credit lines,” and a low percentage of outstanding debt compared to income.
Applicants applying with a cosigner should select “joint” for their application type, and they then will be prompted to enter information about themselves and their cosigner — including both people’s Social Security numbers.
- Only a Soft Pull of your credit score is required to determine loan eligibility
- Fixed monthly payments
- Fixed interest rates
- No prepayment penalties
- No application fee
- Applications not accepted from residents of Iowa, Guam or Puerto Rico
- Loan process usually takes seven days or more
- One-time origination fee of between 1.00% - 6.00% deducted from the loan when it is issued
LendingClub will help you determine whether you need a cosigners and offers an easy way to add a joint applicant to your loan during its online loan application process. While the APRs can be high for applicants with less-than-stellar credit, with a cosigner you could be eligible for much better rates and terms.
Santander Bank, N.A
If you’d like the option to apply for a personal loan in person rather than online (and you live in the Northeast), Santander Bank is one of few brick-and-mortar financial institutions that offer cosigned loans. Santander Bank provides loans between $5,000 and $50,000 that can be used for anything from debt consolidation to emergency car repairs. These loans, however, cannot be used for secondary-educational purposes.
You can start your application online, but you’ll need to complete your paperwork at one of Santander Bank’s 600 branches. When you apply for a personal loan, you’ll be offered the option to apply with a cosigner.
Santander offers relatively low APRs, ranging from 6.99% – 16.99%, depending on how creditworthy the applicant is, with terms from 24 to 60 months. To apply, you’ll need your Social Security number, employment information and income information.
While Santander doesn’t offer details about the credit score required to get a personal loan, its website states that successful loan applications have the “highest credit standards.”
- Fixed, low APRs and monthly payments
- No annual application fee, annual fee or prepayment fee
- Applicants must live in Massachusetts, Maryland, Rhode Island, Connecticut, New Hampshire, New Jersey, Pennsylvania, New York, Delaware, Maine, Vermont or Washington, D.C.
- High credit score required for applicant or cosigner
Because of its low APRs and cosigner policy, Santander could be an excellent source for a loan if you live in the Northeast and may not qualify on your own.
First Midwest Bank
First Midwest Bank offers low APRs, a quick turnaround on loan applications, and an easy application process. While this bank is based in Chicago and serves consumers at more than 100 branch offices in the region, it also offers loans to borrowers online in 26 states.
First Midwest Bank provides loans for between $5,000 – $25,000 with APRs ranging from 7.17% – 12.87%. When you fill out an online application, you can select a “joint” loan and apply with a cosigner.
To apply with a cosigner, you must submit a joint application, and the applicants whose financial information will go on the loan should have a good credit score, at least five years of credit history with no repossessions, bankruptcies, foreclosures, or other significant credit issues. You also may be asked to submit proof of employment or income.
- Low APRs
- Application decision within 24 hours of applying
- Fixed rates
- Flexible payment terms
- $100 documentation fee
- Only residents of certain states qualify
For residents of this bank’s service area, First Midwest Bank is an excellent source for personal loans with a low APR. Its 24-hour turnaround on loan applications will let you know almost immediately whether you or your cosigner qualified.
While OneMain Financial doesn’t offer competitively low APRs compared to many personal loan lenders, it does approve loans for applicants with lower credit scores and allows loans with cosigners. Applicants are required to state the purpose of the loan when they apply, and FirstMain personal loans cannot be used for college expenses, business purposes, purchasing securities or gambling.
OneMain Financial lays out instructions for cosigners, including spouses of applicants. When their information is used for loan qualification, they must provide details about their assets and income. Married people, however, can apply as individuals using their own financial information, and their spouse’s financial information will not be considered.
The lender approves loans between $1,500 and $30,000 with APRs ranging from 16.05% and 35.99%. Terms are for 24 to 60 months.
- Fixed APR
- Fixed payments
- Applications accepted online and at branches
- High APRs
- Borrowers with good credit could get a better deal with another lender
- Loan size is restricted to residents of some states, primarily in the South and East Coast
- Hard Pull on credit with application
If you struggle to find a cosigner with a strong credit score, OneMain Financial is a good option for getting a personal loan. While the lender’s interest rates are high, especially for those with bad credit, OneMain remains one of the few options where you can get a loan.
Interested in a personal loan?Here are the top personal loan lenders of 2019!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com
**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|5.75% – 16.24%1||$5,000 - $100,000|
|7.69% – 35.99%||$1,000 - $50,000|
|7.99% – 35.89%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|5.99% – 29.99%3||$7,500 - $40,000|
|6.79% – 20.89%4||$5,000 - $50,000|
|9.99% – 35.99%5||$2,000 - $25,000|
|6.95% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|