3 personal loan lenders that accept cosigners

Having a cosigner can make getting a personal loan easier. (iStock)

Personal loans can provide quick and convenient funding to cover an unexpected expense, make a large purchase or meet other financial needs. Typically, this is a fixed interest rate loan but locking in the best rate means having a solid credit score. A cosigner may be necessary for borrowers with less than perfect or minimal credit. Fortunately, there are some personal loan lenders that allow for cosigners when borrowing.

Pros and cons of finding a personal loan cosigner

When lenders review a loan application, they're looking for borrowers who have a good (or excellent) credit score, steady income and a low debt-to-income ratio. Cosigners can help fill in the gaps for borrowers who may be lacking one or more of these things. The advantages of having a cosigner on board include:

  • Potentially easier loan approval
  • Lower interest rate
  • Higher maximum loan limits

On the other hand, asking someone to cosign a loan can be problematic. If the borrower defaults on a cosigned loan, both their credit score and the cosigner's may suffer. They could also both be subject to debt collection actions. Aside from the financial consequences, defaulting could hurt the relationship with the cosigner.


Personal loan lenders that allow cosigners

Borrowers who need a cosigner to get a personal loan may want to try these lenders:

1. FreedomPlus

FreedomPlus offers cosigned personal loans of up to $40,000, with same-day approval decisions. The minimum loan amount is $7,500 and there are no hidden fees.

  • Who FreedomPlus could be good for: Borrowers who need to get personal loan funding quickly. It's possible to receive loan proceeds in as little as 48 hours of being approved.
  • Who may want to look elsewhere: Borrowers who only need a smaller loan. FreedomPlus doesn't offer loans in Arizona under $10,500, Massachusetts under $6,500, Ohio under $5,500 and Georgia under $3,500. 


2. Upgrade

Upgrade accepts borrowers with a minimum credit score of 600 who want to apply with a cosigner. Loan terms range from three to five years and it's possible to borrow up to $50,000.

  • Who Upgrade could be good for: Borrowers with fair credit who have a large amount of debt and are interested in consolidation. Upgrade accepts borrowers and their cosigners with a maximum debt-to-income ratio of 60 percent. 
  • Who may want to look elsewhere: Borrowers who want to avoid steep loan fees. Upgrade charges up to a 6 percent loan origination fee. 

3. Laurel Road

Laurel Road offers personal loans up to $45,000 for debt consolidation, credit card refinancing and other needs. Eligible borrowers can get a 0.25 percent interest rate discount when they schedule automatic payments from their bank account.

  • Who Laurel Road could be good for: Borrowers who want a low fixed interest rate loan and need three to five years to pay it back. 
  • Who may want to look elsewhere: Borrowers who need a speedy loan funding process. It can take up to seven days for loan proceeds to be received.