How to Get a Personal Loan with a Cosigner: What to Know First

Oct 23, 2022

Introduction to Personal Loans

When it comes to fulfilling your financial goals or overcoming unexpected expenses, a personal loan can be a lifesaver. However, obtaining a personal loan can be challenging if you have a low credit score or limited credit history. Here is where a cosigner can come to your rescue.

What is a Cosigner?

A cosigner is someone who agrees to take joint responsibility for the repayment of a loan. By adding a cosigner, you can significantly improve your chances of getting approved for a personal loan, even if your creditworthiness falls short.

Benefits of Having a Cosigner

There are several advantages to having a cosigner for your personal loan application:

  • Increased Approval Odds: With a cosigner, lenders are more likely to approve your loan request as they have a second individual, with better credit, guaranteeing repayment.
  • Favorable Interest Rates: A cosigner with excellent credit can help you secure more favorable interest rates on your personal loan, saving you money over time.
  • Build Credit History: Making timely loan payments with a cosigner can help you establish or improve your credit history, allowing you greater financial flexibility in the future.

Choosing the Right Cosigner

It is crucial to select a cosigner who not only has a strong credit profile but also trusts and believes in your ability to repay the loan. Here are some factors to consider when choosing a cosigner:

  • Good Credit History: Look for someone with a solid credit history and a credit score above the lender's minimum requirements.
  • Trustworthy Relationship: Choose someone who knows you well, understands your financial situation, and is willing to vouch for your repayment abilities.
  • Communicate Clearly: Discuss your expectations, responsibilities, and potential risks with your potential cosigner to ensure a mutual understanding.

Steps to Get a Personal Loan with a Cosigner

1. Determine Your Loan Amount and Purpose

Before applying for a personal loan, calculate the specific amount you need and clearly define the purpose of the loan. This will help you communicate your needs effectively to potential lenders and cosigners.

2. Research Lenders

Do your research to find lenders who offer personal loans suitable for your needs. Look for lenders who are willing to work with applicants who have cosigners.

3. Gather Required Documents

To apply for a personal loan with a cosigner, you will typically need:

  • Proof of Income: Pay stubs, bank statements, or tax returns to demonstrate your ability to make loan payments.
  • Identification: A valid identification document such as a driver's license or passport.
  • Personal Information: Provide personal information, including your address, social security number, and contact details.

4. Approach Potential Cosigners

Contact individuals who may be willing to cosign your loan. Explain your financial situation, loan purpose, and your plan for repayment. Address any concerns or questions they may have and be prepared to negotiate terms.

5. Compare Loan Options

Once you have a cosigner on board, compare loan options from different lenders to find the best terms and interest rates. Consider the loan duration, repayment terms, and any associated fees.

6. Complete the Loan Application

Fill out the loan application with accurate information, including both your and your cosigner's details. Be honest about your financial situation and provide any supporting documents required.

7. Review and Sign the Loan Agreement

Thoroughly review the loan agreement, including all terms and conditions, before signing it. Ensure that you understand the repayment schedule, interest rates, and any penalties or fees.

8. Make Timely Loan Payments

Repay your loan installments on time to avoid any negative impact on both your and your cosigner's credit scores. Set up reminders or automatic payments to stay on top of your obligations.


Getting a personal loan with a cosigner can provide you the financial assistance you need while improving your credit history. Life Designers, a renowned consulting and coaching service provider in the business and consumer services industry, understands the importance of personal financial growth and offers expert guidance to clients who seek personalized solutions for their financial needs.

Robert Fallon
This article provides helpful insights on getting a personal loan with a cosigner.
Nov 8, 2023