Best personal loans with a co-signer in 2023

Our top 5 picks for personal loans with a co-signer

To make our choices for the best personal loans with a co-signer, we collected 806 data points (26 individual data points for 31 lenders) from popular lenders, including customer reviews and overall ratings from ConsumerAffairs readers. We used these data points to evaluate factors that impact borrowers most, including credit score requirements, loan limits, repayment terms and annual percentage rates (APRs), before making our final selections.

Our picks may be Authorized Partners who compensate us. This does not affect our recommendations or evaluations but may affect the order in which the companies appear.

• Upgrade
• OneMain Financial
• Achieve Personal Loans
• Credit Direct
• Truist

Upgrade is a personal loan company that lets borrowers access $1,000 to $50,000 in funding with or without a co-signer. This lender lets approved borrowers choose a repayment term from 24 to 84 months. Rates range from 8.49% to 35.99% APR at the time of publishing.

You can check your rate without a hard inquiry on your credit, which makes it easier to gauge approval odds. Note that all personal loans through Upgrade come with an origination fee of 1.85% to 9.99% origination fee; late payment fee applies of the loan amount.

Borrowers who are willing to open a new bank account with Upgrade can earn a $200 welcome bonus after opening a new Rewards Checking account, adding funds to the account and making three debit card transactions within 60 days of account opening.

OneMain Financial is an online lender that offers personal loans to people with imperfect credit, including loans that allow a co-signer.

These loans come in amounts from $1,500 to $20,000, which is lower than many lenders offer. Repayment terms last from 24 to 60 months, and origination fees can be charged in a flat amount ($25 to $500) or as a percentage of the loan (1% to 10%). APRs at the time of publishing are from 18% to 35.99%.

OneMain Financial also offers more than 1,400 physical branches you can visit throughout the country. This makes it possible to apply for funding online or in a branch if you prefer a more personalized experience.

Achieve Personal Loans, formerly known as FreedomPlus, is another personal loan company that lets borrowers apply for funding with a co-signer if they prefer. It promises same-day decisions and funding within 24 to 72 hours.

Loan amounts start at $5,000, but applicants can request funding up to $50,000, depending on their needs. Loans can be repaid over 24 to 60 months, and borrowers can tailor their repayment plan to their budgets when they apply. Note that the minimum you can borrow may vary according to where you live based on state-specific restrictions.

Rates range from 7.99% to 29.99% at the time of publishing, and origination fees of 1.99% to 6.99% of the loan amount apply.

Credit Direct offers unsecured personal loans for reasons like debt consolidation and home remodeling projects, with funds available as soon as 24 hours after you apply. This lender lets applicants borrow between $1,000 and $47,500 and repay it over 12 to 60 months.

Credit Direct loans come with fixed rates ranging from 4.99% to 29.99% at the time of publishing. There are no administration fees.

Truist, created from the merger of BB&T and SunTrust, offers checking and savings accounts, auto loans, home equity lines of credit, personal loans and other financial products.

Its personal loans stand out because of the high maximum loan amount. You can borrow up to $100,000 and pay it back over 24 to 60 months. Rates at Truist at the time of publishing are from 6.99% to 15.98%.

How to get a personal loan with a co-signer

Applying for a personal loan with a co-signer is a lot like applying on your own. Most online lenders make it possible to apply for an unsecured personal loan entirely online, and many let you check your rate with no impact on your credit. This makes it easier to shop around and compare rates and loan terms across multiple lenders.

Once you find a lender with a loan that makes sense for your needs and goals, you should:

• Check for loan fees, including any origination fee.
• Make sure the monthly payment amount fits in your budget and spending plan.
• Verify the repayment term, payment dates and how to make payments.

From there, you can apply for a personal loan by submitting a range of information for yourself and your co-signer. You should plan on submitting details like both of your full names and addresses, Social Security numbers, employment and income information and monthly mortgage or rent amount.

You may also need to supply pay stubs, W-2s or tax returns.

William Bevins, a financial advisor in Franklin, Tennessee, urges both the main borrower and the co-signer to think over the responsibility involved in applying for a personal loan. The co-signer is taking on just as much risk, given they'll be on the hook for repayment if the original borrower defaults.

"If the payments stop being made, the co-signer ultimately bears the responsibility," he said. He also notes that using a friend or family member as a co-signer can interfere with an important relationship if repayment becomes an issue.

"Entering a financial contract such as this has the potential of ruining close relationships. It might be advantageous to think of the long-term fallout if things go badly," he said.

Bottom line

If you can’t qualify for a personal loan on your own, it doesn’t mean your search for a personal loan is over. One possible strategy is to look for a lender that allows a co-signer to join you on a loan application. As you would without a co-signer, compare lenders based on how much you can borrow, how you can use funds, the cost of borrowing (the APR), the loan term and reviews.

Even with a co-signer on board, you should only take out a loan you can afford to pay back on your own. That way, the co-signer never has to assume financial responsibility, and you don’t jeopardize any important relationships.