Applying for a personal loan with a co-signer can make it easier for people with below-average credit to get approved for a loan that has decent terms. A personal loan with the option to add a co-signer allows a second person to put their name on the loan and serve as a guarantor if the primary applicant cannot repay the amount they owe. In other words, the co-signer is ultimately held responsible for paying, which may be enough for the lender to overlook certain concerns about the primary applicant. Approval is based much more heavily on the co-signer’s financial history, so it’s important for that person to have better credit and/or a higher income than the primary applicant if this arrangement is to make sense.
Some personal loan providers do not offer the option to add a co-signer, but rather have joint loans. With a joint loan, there are also two names on the application. However, the two applicants have equal access to the loan and are equally responsible for repaying the borrowed amount, as opposed to one person backing up the other. In this case, both applicants’ credit histories and incomes get the same weight in application decisions.
Personal loans that allow co-signers or joint applications aren’t especially hard to find, but they’re not the standard, either. Of the personal loan providers that WalletHub has reviewed, around half provide one of these two options, with joint applications being more common.
To help potential borrowers with their search, WalletHub’s editors picked out the best personal loans that allow co-signers or joint applications from among our partners in several categories.
Compare Personal Loans with Co-signers or Joint Applications:
|Loan Provider||Best For||APR Range|
|LendingClub||Fair credit||6.95% - 35.89%|
|FreedomPlus||Low minimum APR||5.99% - 29.99%|
*According to multiple third-party sources
When looking for a personal loan that allows co-signers or offers a joint application, you’ll want to consider all the same things you would when getting a personal loan by yourself. That includes APRs, fees, loan amounts, payoff periods, and approval and funding timelines. However, you may be able to consider loans with higher credit score and income requirements than you can personally meet, particularly if you have a co-signer.
Before applying for a personal loan with a co-signer or joint applicant, it’s a good idea for both of you to check for pre-qualification. WalletHub’s free pre-qualification tool
will show you the odds of approval with various lenders, along with potential APRs.
Below, you can see a more detailed comparison of personal loans that allow co-signers or joint applications from WalletHub’s partners.