Best co-signed & joint loans

Our picks for best co-signed & joint loans

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

Compare top co-signed and joint loans

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 that compensate us. This does not affect our recommendations or evaluations but may affect the order in which the companies appear.

What is a co-signed loan?

A personal loan with a co-signer is an unsecured loan you apply for with another person. While only some lenders that offer personal loans let applicants apply with a co-signer, those that do make it easy to borrow for any reason and repay the loan over several years. Applying with a co-signer makes the most sense when you cannot qualify for funding on your own, or when your credit rating or income makes it difficult to get a loan with the best rates and terms.

The best personal loans with a co-signer come with competitive, fixed rates, fixed monthly payments and a set repayment schedule.

» READ MORE: Best personal loans for fair credit

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.

How to find a co-signer

To find a co-signer, start by looking among close family members or friends who are familiar with your financial situation and possess a strong credit history. It's important to have an open and honest conversation about the responsibilities involved in co-signing a loan, ensuring they fully understand the commitment and potential risks.

» COMPARE: Best online loans

Co-signer qualifications

A co-signer typically needs to be over 18 years old and a U.S. citizen, as well as be able to meet the following qualifications:

• Strong credit score: A higher credit score indicates reliability in managing debt, which can help secure better loan terms.
• Stable income: Proof of a steady, reliable income ensures the co-signer can cover the loan payments if the primary borrower fails to pay.
• Good debt-to-income ratio (DTI): A low DTI ratio shows that the co-signer has a manageable level of debt compared to their income.
• Willingness to assume risk: The co-signer must understand and accept the responsibilities and risks involved in co-signing a loan.

When is a co-signer a good idea?

A co-signer can be beneficial when you have a low credit score that might prevent you from securing a loan on your own. Having a co-signer with a strong financial background can help you qualify for loans with better terms, such as lower interest rates. Additionally, using a co-signer can be a strategic move for building or improving your credit score, as long as you make timely payments on the loan.

Pros and cons of personal loans with a co-signer

Risks of using a co-signer for personal loans

While there are many benefits of using a co-signer for your personal loan, it can be a risky move for the co-signer.

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.