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Best Personal Loans With a Co-Signer February 2024

If you're facing challenges like a low credit score or insufficient income, a co-signer can help you qualify and improve your loan terms. Navigate through our detailed comparisons to secure better interest rates, favorable terms, and even greater loan sums tailored for your financial requirements.

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Overview

LightStream is a division of Truist Financial Corporation, acting as its online loans division. LightStream market itself as offering personal loans for practically any purpose, providing loan funding for people with good to excellent credit ratings.

LightStream was founded in 2012 and launched in 2013 as a division of SunTrust Bank. When SunTrust and BB&T merged in 2019, becoming Truist, LightStream came along as part of the deal, and it hasn’t looked back. Another selling point of LightStream’s offering is its same-day loans, where personal loan funding can be in your account on the same day you apply.

Light Stream is a public company: stock ticker NASDAQ: CSCO

Key Facts

  • Good credit gets low rates and zero fees
  • Fast and easy online process
  • $100 Loan Experience Guarantee¹
  • Max Loan Amount: $100K
  • Powered by Credible

Pros

pros iconGet a loan for practically anything

pros iconAutopay discount available

pros iconDedicated app to manage your loan

pros iconLightStream doesn’t charge any fees

Cons

cons iconPersonal loan up to $100K

cons iconRequires steady income

cons icon1-3 Days till funding

  • $5K-$100K Loan Amount
  • 660 Min Credit
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Overview

SoFi, or Social Finance, Inc., was founded in 2011 by Stanford business school students. It started as a way to connect recent graduates with alumni in their community.

In 2012, it became the first private company to refinance both private and federal student loans. A couple of years after that, it started offering mortgage loans, personal loans, and more. By 2019, the company had released SoFi Invest (stock trading) and SoFi Money (cash management account).

Along with loans, SoFi also offers credit cards, budgeting tools, and unique benefits to members. Its goal is to become a one-stop shop for all its consumers’ financial needs.

Sofi is a public company: stock ticker NASDAQ: SOFI

Key Facts

  • Competitive rates available for good credit scores and income source
  • Access to financial advisors, private networking events, & unemployment protection
  • Flexible terms & payment options with no fees whatsoever
  • Max Loan Amount: $100K

Pros

pros iconPersonal loan application process is easy and only takes a few minutes to complete

pros iconSoft credit check that doesn’t affect your credit score and gives you personalized rates

pros iconFixed and variable rate loans available ranging from $5,000 to $100,000

pros iconNo late or origination fees required

pros iconExcellent customer support team

pros iconOnline autopay comes with a discount on interest

pros iconExclusive benefits for members (ex. networking events and access to financial advisors)

pros iconUnemployment Protection feature comes with a temporary payment pause (up to 12 months)

pros iconNo prepayment penalties

Cons

cons iconMay take up to 4 days to receive funds after approval (longer than other online lenders)

cons iconHigh eligibility requirements (ex. good credit and sufficient income)

  • $5K-$100K Loan Amount
  • 680 Min Credit
  • 8.99-25.81% APR
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Overview

Upgrade is an online lender that has been around since 2016. It caters to the needs of a wide range of people, including people who want to refinance credit cards, make significant purchases, and make improvements to their homes.

It also offers a no-fee checking account that provides cash-back opportunities, as well as a variety of different credit lines. This Upgrade review will look at everything that Upgrade brings to the table.

Key Facts

  • Discounts for Upgrade account owners
  • No prepayment fees
  • Fast funding in 1-4 days

Pros

pros iconOffers a small minimum loan amount

pros iconDeals with credit scores of at least 580

pros iconNo early prepayment fee

pros iconQuick time to funding

pros iconSolid mobile app to manage loans

Cons

cons iconCharges origination fee

cons iconLate fees in place

  • $1K-$50K Loan Amount
  • 580 Min Credit
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Overview

Headquartered in San Francisco, California, LendingClub was founded in 2007. The company has provided personal loans to over 4 million members totaling more than $70 billion. It is America’s largest lending marketplace.

LendingClub is unique in that it does not lend money directly to consumers. Instead, it connects borrowers with investors who fund the loan.

LendingClub’s main selling point is that it keeps its costs low and passes savings to borrowers by not having any brick-and-mortar locations.

Lending Club is a public company: stock ticker NYSE: LC

Key Facts

  • One of the largest P2P lending partners & investing companies
  • 15-day grace period for late fees
  • Apply in just minutes and receive competitive offers
  • Max Loan Amount: $40K

Pros

pros iconFunding in as few as 4 days

pros iconAbility to sign up for automatic payments

pros iconNo prepayment penalties

Cons

cons iconOrigination fees ranging from 1% - 6%

cons iconSocial security number is required

cons iconMust be U.S. citizen / On a valid long-term visa

  • $1K-$40K Loan Amount
  • 600 Min Credit
  • 9.57-35.99% APR

Top Co-Signer Personal Loan Providers

660

Min Credit Score

7.99-25.49%

APR. Fixed Rate

$5K-$100K

Loan Amount

2-7 years

Repayment terms

No

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

1 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Get a loan for practically anything
  • con-icon Autopay discount available
  • con-icon Dedicated app to manage your loan
  • con-icon LightStream doesn’t charge any fees
  • con-icon Personal loan up to $100K
  • con-icon Requires steady income
  • con-icon 1-3 Days till funding

Loan Purpose

drop-down-btn
  • Car
  • Major Purchase
  • Household Expenses
  • Vacation
  • Wedding
  • Other

Loan Type

drop-down-btn
  • Secured Personal Loans
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
  • Variable-Rate Personal Loans
sofi logo
SoFi

Low Rates. No Fees are Required.

680

Min Credit Score

8.99-25.81%

APR. Fixed Rate

8.99-25.81%

APR. Variable Rate

$5K-$100K

Loan Amount

24 to 84 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

Same-day funding if approved before 7:00 PM ET days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Personal loan application process is easy and only takes a few minutes to complete
  • con-icon Soft credit check that doesn’t affect your credit score and gives you personalized rates
  • con-icon Fixed and variable rate loans available ranging from $5,000 to $100,000
  • con-icon No late or origination fees required
  • con-icon Excellent customer support team
  • con-icon Online autopay comes with a discount on interest
  • con-icon Exclusive benefits for members (ex. networking events and access to financial advisors)
  • con-icon Unemployment Protection feature comes with a temporary payment pause (up to 12 months)
  • con-icon No prepayment penalties
  • con-icon May take up to 4 days to receive funds after approval (longer than other online lenders)
  • con-icon High eligibility requirements (ex. good credit and sufficient income)

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Major Purchase
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans
Upgrade Personal Loans Logo
Upgrade

Flexible Personal Loan Options

580

Min Credit Score

8.49-35.99%

APR. Fixed Rate

$1K-$50K

Loan Amount

24-84 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

Yes

Other Fees

1.85-9.99

Origination Fee

None

Prepayment Fee

1 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Offers a small minimum loan amount
  • con-icon Deals with credit scores of at least 580
  • con-icon No early prepayment fee
  • con-icon Quick time to funding
  • con-icon Solid mobile app to manage loans
  • con-icon Charges origination fee
  • con-icon Late fees in place

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Major Purchase

Loan Type

drop-down-btn
  • Secured Personal Loans
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
  • Variable-Rate Personal Loans

What is A Co-Signer Loan?

A co-signer loan involves a secondary borrower, often with a higher credit score, who commits to repay if the main borrower defaults. It offers increased approval chances and potentially better terms like lower interest rates, which are ideal for those with poor or no credit. These loans are versatile and suitable for expenses like car or home purchases, education, or debt consolidation.

Co-signer vs. Co-borrower?

A co-signer is not the same as a co-borrower. A co-signer can help you qualify for financing if you need it. Like the primary borrower, a co—borrower has full access to the loan’s funds. Both a co-signer and a co-borrower are responsible for repaying the loan, but a co-signer will only make payments if the borrower does not.

How Does a Co-Signer Loan Work?

A co-signer loan is like asking a friend with a good credit score to vouch for you when borrowing money. If you have trouble borrowing on your own due to a bad track record or no borrowing history, this co-signer steps in and promises the lender they'll pay if you can't. Your friend's good reputation gives the lender confidence, possibly leading to better borrowing terms for you. However, if you don't repay the loan, your friend will have to, which might hurt their good reputation. So, being responsible is crucial when someone is vouching for you.

Average Co-Signer Personal Loan Rates

The best co-signer loans will come with flexible repayment terms and a low APR (annual percentage rate). The rate depends on several factors, including the borrower’s and co-signer’s credit scores. Here are a few examples of reputable lenders and their joint loan offers:

Lender APR (Fixed) Loan Term Loan Amounts Recommended Minimum Credit Score
LightStream 7.99% to 25% 24 to 144 months $5,000 to $100,000 660
SoFi 8.99% to 23.43% 24 to 84 months $5,000 to $100,000 680
Upstart 6.70% to 35.99^ 36 to 60 months $1,000 to $50,000 580
LendingClub 8.05% to 36% 36 to 60 months $1,000 to $40,000 600
Credible 5.40% to 35.99% 12 to 84 months $600 to $100,000 600
LendingTree 5.99% to 35.99% 3 to 180 months $1,000 to $50,000 550

*Rates and requirements are subject to change

Pros and Cons of  Co-Signer Personal Loans

Pros Cons
Easier to get if you have poor credit or limited income Not all lenders offer co-signer loans
May help you qualify for higher rates, better terms, or larger loan amounts Could strain your relationship with your co-signer if you default on payments
Funds can be used for nearly anything Both parties are responsible for loan repayment

Top Co-Singer loan reviews

lightstream new logo
LightStream
  • APR: 7.99 - 24.49% *w/ Autopay
  • Loan Term: 24 - 84* months
View rates
sofi logo
SoFi
  • APR: 8.99-25.81%
  • Loan Term: 24-84 months
View rates
Upgrade Personal Loans Logo
Upgrade
  • Discounts for Upgrade account owners
  • No prepayment penalties
View rates

How to Get a Co-Signer Personal Loan

The process of getting a joint loan is similar to how you would get a typical personal loan. Some lenders have their own application process, but here’s a general overview of how to do it:

  1. Review your credit. Before applying for any financial product, checking your credit is important. Ask your co-signer to check their credit to ensure it’s high enough to help you qualify for a loan.
  2. Check the lender’s requirements. Most lenders require borrowers to meet certain credit score, income, and debt-to-income (DTI) ratio criteria. If your co-signer meets or exceeds these requirements, you could potentially get better terms or rates.
  3. Gather your documents. Both you and your co-signer will typically need to provide the same documents. This can include your driver’s licenses, Social Security numbers, paystubs, W-2s, and recent bank statements. It may also include contact information from both parties.
  4. Shop around for lenders. Not all lenders offer joint loans, so you may need to shop around to find those that do. It’s also a good idea to compare several lenders before choosing one. Compare their eligibility requirements, loan rates and terms, lender fees, and online reputation. Pick a lender with a competitive offer and minimal to no fees.
  5. Prequalify for a loan. Prequalifying lets you check your possible rates and terms without hurting your credit.
  6. Complete the loan application. After finding the best lender for your co-signer loan, fill out and submit the formal application. Your co-signer will either have to complete their own application or add their information along with yours.
  7. Wait for the decision. The lender will review both your and your co-signer’s information to determine whether to approve or deny your application. Depending on the lender, this can take anywhere from a day to a couple of weeks.
  8. Receive funds. Once approved, review and sign the loan agreement. You’ll then receive the funds in your bank account — sometimes within a few business days.
  9. Start making payments. Now that you have a joint loan, you’ll need to start making payments until it’s repaid in full.

Co-Signer Loans: What to Consider

Here are the top things to consider when looking for a co-signer personal loan loan:

  • Co-signer requirements: Your co-signer should be someone with good money management habits and a history of making on-time payments. They should have good or great credit (670+), a steady income, and a low DTI ratio.
  • Cost of the loan: A joint loan comes with its own interest rate and repayment term. Some lenders also charge additional fees, such as origination or prepayment fees. Use an online calculator to determine the total cost of the loan and calculate your estimated monthly payments. Choose a loan that you can comfortably afford to repay.
  • Time to funding: Certain online lenders offer same-day or next-day funding options. This could be a good option if you need the cash quickly.
  • Building credit: You may be able to build credit using a co-signer loan, but you’ll need to keep your credit utilization low and consistently make on-time payments.

Does Getting a Co-Signer Affect Your Credit?

Being a co-signer on might assist in establishing credit. The principal loan holder and co-signer share equal financial liability, and the loan will appear on both credit reports. However, your score could also be badly impacted if the primary account holder misses payments.

Indeed, co-signers are expected to make payments if the primary account holder fails to do so – Your credit score might decrease if the recipient makes late or no payments. In addition, while having many credit lines may help you appear favorable to potential lenders, it only accounts for a minor portion of your credit score. Typically, this is only beneficial if you have demonstrated that you can manage many lines of credit over an extended period by making payments on schedule and keeping balances low.

On a final note, your debt would rise as the debt of the consignee would be shown on your credit record. This increase in the debt you owe will be reflected in the relevant section of your credit report.

Alternatives to Co-Signer Loans

If a co-signer loan isn’t right for you, here are a couple of alternatives to consider:

  • Improve your credit score: By checking for errors on your credit reports and disputing them, making on-time payments, reducing your debt, and using a secured credit card or credit-builder loan to gradually raise your score. This will help build a stronger credit foundation for your financial goals.
  • Use a secured personal loan: These loans are secured with an asset or collateral, like a paid-off vehicle or house. If you default on payments, the lender can take the asset instead. This makes them less risky to the lender than unsecured loans. These loans also tend to have more lenient requirements.
  • Get a low-interest credit card:A credit card could be useful if you need to consolidate debt, pay for emergencies, or purchase a big-ticket item. You may need good credit to qualify for a competitive interest rate or higher credit limit.
  • Use a loan from your retirement account: If you have a retirement account, you may be able to take out a loan to cover emergencies or other expenses. For example, some 401(k) plans offer 401(k) loans. These loans can be used for almost anything. In the case of a 401(k) loan, you can only borrow up to 50% of your account balance or  $50,000 (whichever is less). Depending on the retirement account, you could be facing an early withdrawal penalty or have to pay taxes on the borrowed amount.