If your credit history or income makes borrowing difficult, personal loans with a cosigner can give you another way to strengthen an application. A cosigner agrees to take responsibility for the debt if the primary borrower fails to repay it.
Not every lender offers traditional cosigned loans. Some instead accept co-borrowers or joint applicants, so it is important to understand the difference before applying.
4 options to consider
The lenders below offer personal-loan options that allow another person to participate in the application or specifically discuss cosigners. Terms depend on the applicant’s credit profile, income, state and other eligibility criteria.
1. PenFed Credit Union
PenFed Credit Union offers personal loans of up to $50,000, with terms of up to 60 months. The lender does not charge an origination fee or a prepayment penalty on its personal loans.
PenFed also explains that a cosigner can help a borrower with limited or poor credit qualify or potentially receive better terms.
Best for: borrowers who need a larger loan and want the option of applying with additional financial support.
2. U.S. Bank
U.S. Bank allows personal-loan applications with a joint applicant. The bank considers the co-applicant’s income and credit history, which can affect the interest rate and loan amount.
As of July 20, 2026, U.S. Bank listed fixed APRs from 9.24% to 24.99%, with loans starting at $1,000. Terms range from 12 to 84 months for eligible customers, although non-clients can receive terms of up to 60 months.
Best for: borrowers who want to apply jointly with another person.
3. OneMain Financial
OneMain Financial offers joint personal loans from $1,500 to $30,000, with repayment terms from 24 to 60 months. Applying with another borrower may lead to better rates or a higher loan amount.
OneMain’s current personal-loan rates range from 11.99% to 35.99% APR, depending on the borrower’s qualifications and other factors.
Best for: borrowers who prefer a joint application and want access to branch, phone and online support.
4. Achieve
Achieve specifically explains how a cosigner can strengthen a personal-loan application. A cosigner may help borrowers with limited or poor credit qualify, obtain a larger loan or potentially receive a lower rate.
Achieve Personal Loans range from $5,000 to $50,000, with repayment terms of 24 to 60 months. Current APRs range from 6.25% to 35.99%, including applicable origination fees of 1.99% to 9.99%.
Best for: borrowers specifically looking for a lender that discusses cosigned applications.
Quick comparison
| Lender | Application type | Loan amount | Terms | Notable feature |
|---|---|---|---|---|
| PenFed | Cosigner discussed | Up to $50,000 | Up to 60 months | No origination or prepayment fee |
| U.S. Bank | Joint applicant | From $1,000 | 12–84 months* | Co-applicant income and credit considered |
| OneMain Financial | Joint loan | $1,500–$30,000 | 24–60 months | Joint applications available |
| Achieve | Cosigner discussed | $5,000–$50,000 | 24–60 months | Cosigner may strengthen application |
*Non-clients may receive terms of up to 60 months.
How does a cosigner help?
A lender evaluates the financial risk of an application using information such as credit history and income.
Adding a person with a stronger financial profile gives the lender another source of repayment. Depending on the lender, this may improve the likelihood of approval or help the borrower qualify for different terms.
However, a cosigner does not guarantee approval.
Cosigner vs. co-borrower: what’s the difference?
The two roles have different responsibilities.
Cosigner
A cosigner agrees to repay the debt if the primary borrower fails to do so. The cosigner generally does not receive the loan funds.
Co-borrower
A co-borrower applies alongside the primary borrower and shares responsibility for repayment. Both parties generally have access to the loan funds.
Some lenders offer only one of these structures, so check the application terms before proceeding.
What should you compare between lenders?
Look beyond the advertised rate. Compare:
- APR: the annual cost of the loan;
- loan amount: how much you can borrow;
- term: how long you have to repay;
- fees: including origination charges;
- monthly payment: whether it fits your budget;
- application structure: cosigner, co-borrower or joint applicant;
- prequalification: whether you can review potential terms before a hard credit inquiry.
The rate advertised by a lender does not necessarily represent the rate you will receive.
Does a cosigner guarantee a lower rate?
No. A cosigner with stronger credit may improve the terms available, but the lender still reviews the complete application. A stronger second applicant can help, but no lender guarantees a specific rate simply because you apply with a cosigner.
What risks does the cosigner take?
Cosigning creates a serious financial obligation.
If the primary borrower misses payments, the cosigner can become responsible for the debt. Late or missed payments can also affect the cosigner’s credit history.
Before signing, both people should understand the payment amount, loan term and consequences of missed payments.
Can you remove a cosigner later?
It depends on the lender and loan agreement. Some lenders may offer a cosigner release after specific requirements are met. Others may require the borrower to refinance the debt in their own name.
Do not assume that a cosigner can be removed automatically after a period of on-time payments. Check the agreement before signing.
How to apply with a cosigner
The process varies by lender, but these steps can make the application easier:
- Check your credit and income.
- Choose a financially qualified cosigner.
- Compare lenders and application requirements.
- Check for prequalification when available.
- Gather income and identification documents for both people.
- Submit the application.
- Review the final APR, fees and payment before signing.
Are personal loans with a cosigner easier to get?
They can be, especially when the additional applicant has stronger credit, stable income and a manageable debt-to-income ratio.
The lender still makes the final decision based on its own underwriting criteria. A cosigner should therefore improve your application, not serve as a guarantee of approval.
What if you can’t find a cosigner?
You have other ways to strengthen an application.
Consider:
- applying for a smaller amount;
- improving your credit before borrowing;
- reducing existing debt;
- comparing lenders with different eligibility requirements;
- considering a secured loan if appropriate;
- exploring a joint-loan option.
When should you avoid using a cosigner?
A cosigner may not make sense if the loan payment would already strain your budget.
It is also worth reconsidering if:
- the cosigner’s financial profile is only slightly stronger;
- you could wait and improve your credit;
- the loan amount is larger than you actually need;
- the payment would consume too much of your income;
- you or the cosigner are uncomfortable sharing the financial risk.
A stronger application is useful only if the underlying loan remains affordable.
Choosing the right option
The best personal loans with a cosigner are not necessarily the ones with the lowest advertised APR. The right choice depends on the rate you actually qualify for, the fees, loan term, monthly payment and responsibilities assumed by both people.
Compare several offers before applying, and make sure the cosigner understands that the commitment can affect their finances and credit as well.
Frequently Asked Questions
Does a cosigner need good credit?
Lenders generally look for a cosigner with a strong credit history, stable income and a debt-to-income ratio that meets their requirements. The exact criteria vary by lender.
Can a family member be a cosigner?
Potentially. The lender determines who can participate and what requirements that person must meet. Family members can serve as co-applicants with some lenders.
Does the cosigner receive the loan money?
Generally, no. A traditional cosigner guarantees repayment but does not receive the loan funds. A co-borrower typically has access to the funds.
Does cosigning affect the other person’s credit?
Yes. The loan and its payment history can affect the cosigner’s credit. Missed payments can negatively affect both parties.
Can a cosigner be removed from the loan?
Possibly, depending on the lender’s rules. Some agreements provide a release process, while others may require refinancing to remove the cosigner.
Is a joint loan better than a cosigned loan?
Neither is automatically better. A cosigner generally supports the primary borrower without receiving the funds, while a co-borrower shares the loan and repayment responsibility from the beginning.