Best Personal Loans With a Co-Signer or Co-Borrower for 2024

Dawn Papandrea is a credit card expert with 10+ years of experience covering credit cards, banking, personal finance and careers. Her reviews of credit cards and other financial products appear on The Balance, Investopedia, and on personal finance sites elsewhere. Dawn earned her master's in journalism and mass communication from New York University and has a bachelor's in English from St. John's University.

Michael Rosenston is a fact-checker and researcher with expertise in business, finance, and insurance.

Patelco Credit Union is the best choice if you want a loan with a co-signer while SoFi is the best lender if you have a co-borrower. Both have low annual percentage rate (APR) ranges, high maximum loan amounts, and flexible loan terms. We evaluated 70 lenders across 31 different loan, lender, and customer service criteria including costs, loan terms, eligibility, and the availability of loan pre-approval.

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Best Personal Loans With a Co-Signer or Co-Borrower for 2024

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• Best With a Co-Signer: Patelco Credit Union
• Best With a Co-Borrower: SoFi
• Best for Bad Credit: Upgrade
• Best for Debt Consolidation: First Tech Federal Credit Union
• Best for Low Interest Rates: Prosper
• Best Big Bank: U.S. Bank
• Best for Military Members: Navy Federal Credit Union

• Best Home Warranties
• Best Emergency Loans for Bad Credit
• Best Personal Loans for Bad Credit

Investopedia collected key data points from several lenders to identify the most important factors to borrowers. We used this data to review each lender for fees, accessibility, repayment terms, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right borrowing decision for their needs.

• Our Top Picks
• Patelco Credit Union
• SoFi
• Upgrade
• First Tech Federal Credit Union
• Prosper
• U.S. Bank
• Navy Federal Credit Union
• See More (4)
• Compare Providers

Best With a Co-Signer : Patelco Credit Union

• APR Range: 9.30% - 17.90%
• Loan Amount: $300 - $100,000
• Loan Terms: 6 months - 84 months

Patelco Credit Union is our top choice for loans with a co-borrower. It offers:

• A competitive APR range between 9.30% to 17.90%
• The ability to apply with either a co-signer or a co-applicant
  
• The LevelUp program, which allows you to earn a 0.5% interest rate discount for making 12 consecutive payments on time (up to three times for a total discount of 1.5%)

Branches are only available in California and you must be a member of the credit union to borrow. Learn more about membership below.

• High maximum loan amount
• Rate discount program for on-time payments
• No origination fees
• Competitive rates

• Must become a member of Patelco
• Branches only in California

• To join Patelco, you must open a savings account with a $1 minimum opening deposit and meet its membership criteria.
• You must have a Social Security number.
  

Best With a Co-Borrower : SoFi

• APR Range: 8.99% - 29.49%
• Loan Amount: $5,000 - $100,000
• Loan Terms: 24 months - 84 months

SoFi is one of the more favorable online personal loan lenders today, thanks to:

• Competitive APR starting at 8.99%
• Flexible loan terms between
• Money-saving features like discount programs
• No late fees

You can pre-qualify for a loan without a hard credit check. You can also apply with a co-applicant, but they must live at the same address as you.

• Competitive rates
• No late fees
• Large loan amounts available

• Applying with a co-applicant may extend the loan process for 1 to 2 weeks
• High minimum loan amount
• Only allows co-applicants, not co-signers

• Must be 18 years or older
• Must live in an eligible state
• Must be a U.S. citizen, permanent resident, or non-permanent alien resident
• Must meet income, credit, and financial history requirements
• Co-applicants must share employment, income, and education information

Best for Bad Credit : Upgrade

• APR Range: 9.99% - 35.99%
• Loan Amount: $1,000 - $50,000
• Loan Terms: 24 months - 84 months

Unlike predatory lenders. Upgrade can help you if you have bad credit. Consider some of the features of borrowing with Upgrade:

• Reasonable rates
• Flexible terms
• Applying with a co-applicant, which can help you get approved if you have bad credit
• A fast and easy online application process

The downside with Upgrade is the fairly high origination fee, which can be as high as 9.99%.

• Fast funding within one business day
• Flexible borrowing amounts and repayment terms
• Pre-qualification option

• Relatively high origination fee
• Higher maximum APR than some competitors

• You must be the age of majority in your state.
• You must have a verifiable bank account.
• You must be a U.S. citizen or permanent resident.

Best for Debt Consolidation : First Tech Federal Credit Union

• APR Range: 8.64% - 18.00%
• Loan Amount: $500 - $50,000
• Loan Terms: 24 months - 84 months

First Tech Federal Credit Union offers a range of personal loan options, including debt consolidation loans. It offers:

• Personal loan amounts up to $50,000 (higher if you secure your loan with an investment)
• Low APRs that are capped at 18%
• Longer loan terms that go as far as seven years
• Payment deferral for up to 45 days after your disbursement
• Purchase payment protection coverage

You must be a First Tech member before you can be approved for a loan. Membership details are listed below.

• Defer first payment
• Payment protection
• No origination fees

• Requires membership
• No APR discounts
• Funding not as fast as some competitors

• You must be a First Tech member before you can get a loan from the credit union.
• To qualify for a First Tech membership, you must work or live in Lane County, Oregon, have a family or household member who is already a member, work for the state of Oregon or for an employer on the credit union’s partner list, or belong to the Computer History Museum or Financial Fitness Association.

Best for Low Interest Rates : Prosper

• APR Range: 8.99% - 35.99%
• Loan Amount: $2,000 - $50,000
• Loan Terms: 24 months - 60 months

Prosper is a peer-to-peer lender, though it works much the same as any other online lender. Consider this lender if you want:

• A starting APR of 8.99%
• Loan amounts that range from $2,000 to $50,000
• The option to apply with a co-applicant

Although Prosper has a good reputation, it does charge origination fees, and its loan terms max out at five years.

• Pre-qualification is available
• No prepayment penalty
• Strong customer reviews

• Origination fee up to 7.99%
• Shorter terms than some lenders

• Must be at least 18 years of age
• Must have a U.S. bank account and a Social Security number
• Must have a credit score of 640 or higher to qualify for a loan (or apply with a co-borrower)
• A secondary borrower must have a minimum FICO score of at least 600 and no bankruptcy filings within the last 12 months

Best Big Bank : U.S. Bank

• APR Range: 8.74% - 24.99%
• Loan Amount: $1,000 - $50,000
• Loan Terms: 12 months - 84 months

U.S. Bank offers customers decent rates, a wide range of loan amounts, and repayment terms. Non-customers are limited to a smaller loan amount and only up to five years to repay.

• APR Range: 8.99% - 18.00%
• Loan Amount: $250 - $50,000
• Loan Terms: 6 months - 180 months

Navy Federal Credit Union members can access its personal loans, which have:

• Low APRs (8.99% to 18%)
• Repayment terms of up to 15 years
• The option to apply with a co-applicant if you don't qualify on your own
• No origination fees

You won’t be able to pre-qualify for the loan, so you’ll have to accept a hard credit inquiry to see your offer. You must be a member of the credit union.

• Strong rates
• Allows co-borrowers
• Flexible loan options

• Pre-qualification not available
• Membership eligibility is limited

• Membership eligibility requires you to be a current or former military member, a civilian contractor or employee of the Department of Defense, or a relative of someone in those groups.
• Available in all states and Washington, D.C.
• Both applicants must meet age, credit score, income, and residency requirements

Compare the Best Personal Loans With a Co-Signer or Co-Borrower for 2024

The Bottom Line

Our top pick for a personal loan with a co-applicant is SoFi. SoFi offers a totally fee-free loan experience and provides various rate discounts to keep borrowing costs in check. It also checks the box for large loan needs, offering up to $100,000.

Keep in mind that not all lenders allow co-signers or co-applicants as you compare personal loans. But reputable lenders like Patelco Credit Union offer both co-signer and co-applicant options while Navy Federal has longer repayment options, which can make your loan more affordable.

The terms co-borrower and co-applicant are often used interchangeably. In some cases, they may mean the same thing. Underwriters consider the financial and credit profile of co-applicants when reviewing loan applications. Depending on the lender, these individuals may become a co-borrower when the loan is approved and funded.

Understanding Borrower Risk and Credit Terms

The relationship between borrower risk and credit terms is fundamental in the lending industry and has a significant impact on how lenders structure loans. Borrower risk is the likelihood that you as the borrower may default on your loan. Lenders assess borrower risk in a couple of different ways and choose to loan funds across a spectrum that ranges from high borrower risk to low borrower risk.

• Higher borrower risk = Stricter credit terms: When a borrower is perceived as a higher risk, lenders often respond by imposing stricter credit terms. This may include higher interest rates to compensate for the increased likelihood of default. Stricter credit terms may also involve lower loan amounts, shorter repayment periods, or additional fees and collateral requirements to mitigate potential losses.
• Lower borrower risk = More favorable credit terms: If you’re deemed a lower risk, lenders may offer more favorable credit terms. This can include lower interest rates, higher loan amounts, and longer repayment periods. Lower-risk borrowers are often viewed as more reliable, so it’s in a borrower’s best interest to minimize their risk profile (which can be done by securing a co-signer or co-borrower).
  

Researcher Insight

During our research, we learned that far more lenders allow co-borrowers (38 of 70 lenders) than co-signers (14 of 70). While both a co-signer and a co-borrower can help you get approved for a loan (or get better terms), there are slight differences between the two. A co-signer shares their credit score and other credit scoring factors during the application, but they do not share ownership in the loan. And they are only responsible for repayment if the borrower defaults. In contrast, a co-borrower is a joint owner of the loan and is equally accountable for recurring monthly payments. If you’re considering a co-signer or co-borrower, understand the difference, and make sure your co-signer or co-borrower does, too. - Sana Siddiqui, Research Analyst, Investopedia

Guide to Choosing the Best Personal Loans With a Co-Signer or Co-Borrower

Co-Signers vs. Co-Borrowers

If you have bad credit or a limited credit history, applying for a personal loan with a co-signer or co-borrower can help you access cash you may not qualify for on your own. A co-signer is someone who agrees to be responsible for a loan, but who doesn’t have access to the funds. For example, a parent may agree to co-sign your loan to help you get a low APR, but the money will be delivered to you, the borrower.

A co-borrower, on the other hand, is a joint borrower and has equal access to the loan proceeds. For example, a married couple could apply for a loan together and split the funds and the repayment responsibility. In both cases, the lender will review both applicants’ credit and income information when making a decision.

Co-signing comes with risks, but if you’ve decided it’s your best option, be aware that not all personal lenders allow co-signed applications. Some allow co-applicants, which can still benefit you if you can’t qualify on your own.