What are the requirements for a personal loan cosigner?

The general requirements for a personal loan cosigner include having a good-to-excellent credit score and a higher income than the primary borrower. Additionally, a cosigner will need a low debt-to-income ratio and a valid bank account in case they need to make loan payments. You can see all of the requirements for a personal loan cosigner below.

Requirements for a Personal Loan Cosigner

Age of majority in your state

Lenders cannot offer loans to minors, and the age of majority is when a person is legally considered an adult. Typically, this age is 18 years old, but in some states, it is 19 or 21 years old.

Good or excellent credit score

If you have good or excellent credit as a cosigner, you have the best chance of meeting any lender’s minimum credit score requirement. Plus, the higher your credit score is, the lower your APR might be.

However, a cosigner with a credit score as low as 680 could still help in the right situation. You just won’t have as many options and the terms won’t be as good. You can check your credit score for free on WalletHub.

U.S. citizen or permanent resident

Depending on the lender, you’ll have to be a U.S. citizen or a permanent resident to apply for a personal loan. You will also have to provide a government-issued identification number, such as an SSN or ITIN, or a passport number.

High income

You’ll need to have enough income or assets to pay back the loan if you want to be a cosigner. Some lenders may have specific income requirements, as well.

Bank account

You’ll need to provide bank account information to show that you can repay the loan if the primary borrower defaults. In some cases, this bank account may have to be from the lender you’re applying with.

Low debt-to-income ratio

If you owe too much in relation to how much income or assets you have, the lender may not approve you. Keep in mind that lenders will also consider your current monthly expenses when you apply.

If you think you meet these cosigner requirements, you and the primary borrower can start comparing your options. To see the top-ranked offers, check out WalletHub’s picks for the best personal loans with a cosigner.