If you’re in the market for a personal loan but your credit isn’t great, you’re going to have a hard time getting approved. However, getting a personal with a cosigner could be a good option.
Personal loans are available through credit unions, banks, and online lenders, and the terms and conditions vary by institution. Here are some lenders that accept personal loan cosigners.
What’s a personal loan?
Getting a personal loan can help you cover costs when you don’t have money handy, regardless of the reason.
Personal loans are usually unsecured, which means they don’t require collatoral. Secured loans, on the other hand, such as mortgages and car loans, do require collateral.
If you don’t pay back a secured loan, lenders can seize your collateral, such as your house or car. If you don’t pay back an unsecured loan, your credit score will tank, and you’ll have a hard time getting a loan or line of credit in the future.
Why you might need a cosigner
Some personal loans are available if you have a bad credit score, but there’s no guarantee you’ll qualify. To increase your chances, you might consider getting a cosigner. A cosigner is someone who agrees to pay back your loan if you don’t.
If you pay back your loan on time and according to its terms, your credit score will go up, and so will your cosigner’s. But if you miss even one payment, both your credit scores will suffer.
It’s easier to get a loan with a cosigner if they have a good credit score and aren’t a risk to lenders. But be mindful that if you can’t keep up with your payments, your cosigner will be on the hook for the loan. This can hurt your relationship.
Lenders that accept personal loan cosigners
As you research your options, think about how much money you’ll need and how long it’ll take to pay it back. Get your paperwork in order. And before you apply, check your credit report. You can get it for free through websites such as Credit Karma and AnnualCreditReport.com.
A credit union is one of the best options for a personal loan. Because credit unions are local, nonprofit institutions, they might work with you if your credit isn’t great. They’re also more likely to offer leniency if you have a cosigner. Having a cosigner can lower your interest rate, which means you’ll end up paying less over the life of the loan.
Find a credit union near you from the National Credit Union Administration. Talk to local branch representatives to find out about their personal loan offers and whether they accept cosigners.
An online lender can be another great option, but not all lenders operate the same way. Online lenders vary in their terms and repayment options as well as their minimum FICO score requirements. So you might qualify for some loans and not others. Start by comparing personal loan lenders.
As you compare, you’ll find LendingClub, Citizens Bank, and FreedomPlus — all online lenders that accept cosigners. They all accept FICO scores under 700, with LendingClub accepting FICO scores as low as 600.
Here’s a list of some online lenders that accept cosigners for personal loans:
- Citizens Bank
- OneMain Financial
Be sure to contact your preferred lender to see if it’s possible to get a personal loan with a cosigner.
Only a few banks offer unsecured personal loans, which is why banks generally shouldn’t be your first choice for getting a personal loan.
Wells Fargo is one of the largest banks that allows cosigners for personal loans. You don’t have to be a current banking customer to apply. Citibank is another major bank that accepts cosigners for personal loans.
Here are a few banks that offer personal loans with cosigners:
- Wells Fargo
- TD Bank
Keep in mind that many banks require you to apply in person at a branch, while others allow you to apply online. Check with local banks near you, as requirements for applications and cosigners can vary by branch, bank, and state.
Be prepared for personal loans
While a personal loan can be used for anything, it’s important to do your research before you apply for one. Ask yourself why you need a personal loan and how much money you need. Find a personal loan lender that will take poor credit if yours isn’t up to par. This is helpful whether you have a cosigner or not.
Make sure you have all the documentation you need, including your tax returns and pay stubs, before applying. The more prepared you are before the application process begins, the easier it will be for you to secure a loan.
Whether you’re looking for lenders that accept personal loan cosigners or you’re on your own, remain mindful of everything involved in taking out a personal loan.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|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.
|7.73% – 29.99%||$1,000 - $50,000|
|6.26% – 14.87%1||$5,000 - $100,000|
|6.99% – 35.97%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|4.99% – 29.99%3||$10,000 - $35,000|
|5.99% – 18.99%4||$5,000 - $50,000|
|15.49% – 34.49%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|