Which Banks Offer Personal Loans With a Cosigner?

Start by shortlisting lenders that will actually accept a cosigner so you don't waste time on banks that won't.

1. Use the FDIC BankFind tool and the NCUA locator to build a list of local and national banks and credit unions.
2. Visit each lender's **personal‑loan** page and disclosures, search for '**cosigner**,' '**co‑applicant**,' or 'joint' to confirm policy.
3. Run soft‑pull prequalification twice, once solo and once with cosigner, to see if the option and different APRs appear.
4. Check FAQs and loan agreements for cosigner eligibility (minimum FICO, residency, proof of income, documentation required).

Know the differences and keep records: some lenders treat a cosigner as a **guarantor**, others as a **joint applicant** (this affects liability and reporting). Some fintechs allow **co‑borrowers** only, not cosigners. Save screenshots of each lender's policy and stated APR ranges for comparison. If your credit report has errors, get a neutral review and fix inaccuracies before involving a cosigner, that protects both you and the person helping you.

Start locally: use federal locators, then narrow to credit unions and community banks that explicitly allow cosigners and offer soft‑pull prequalification.

• Find nearby institutions with the NCUA map: search the NCUA locator.
• Cross-check small banks via FDIC branch search and local community development finance institutions using the CDFI Fund directory.
• Filter for 'open-to-all' credit unions or ones with easy field‑of‑membership workarounds like association joins.
• Look for posted rate tiers, 'member relationship' discounts, and explicit 'add cosigner' language in branch disclosures or online applications.
• Prioritize institutions that offer soft pulls for prequalification so you can check rates without harming credit.
• Red flags: lenders that refuse written cosigner policies, require only in‑branch notarization without online options, or push storefront loans with APRs above 36%.

Call branches to confirm cosigner steps and required documents, ask about whether the cosigner's credit is reported, and prefer CDFIs or community credit unions when you need flexible approval and lower rates.

A quick A/B prequal the same day is the fastest way to see whether a cosigner meaningfully lowers your cost of borrowing.

Run two prequals, you alone and with the cosigner, on the same day so scoring models match. Capture APR, term, origination fee, any autopay or relationship discounts, and compute total interest paid over the life of the loan. Note which lenders quote a lower tier because of the cosigner, and which still price to the weaker file; ask how they pull scores. Rank offers by total cost of funds and prepayment flexibility, not just by monthly payment. Verify whether lower APRs require automatic payments or bank relationships that can be lost later.

Cosigning upside: access to lower rate tiers, faster approval odds, and potential credit-mix benefits plus payment history posted to both files. Risks: late or missed payments hurt both credit reports and make the cosigner legally responsible. Also confirm whether refinancing or release options exist and whether the lender reports joint payment history to both bureaus.

Checklist for your comparison

• APR and amortization schedule
• Term length and total interest paid
• Origination and out‑the‑door fees
• Autopay, relationship, or rate discount rules
• Prepayment penalties and refinancing/release terms
• Which credit file the lender bases pricing on
• Reporting practices to credit bureaus

Quick math example: use CFPB loan calculator tools to compare totals.

Adding a cosigner often turns a likely denial into approval by boosting the lender's view of your ability to repay. Underwriting usually looks at both borrowers. Lenders may count combined income and debts, shown as DTI, and they frequently require each person to meet a minimum score or income floor. Some lenders underwrite to the primary borrower's profile while treating the cosigner as a guarantor, others use the lower of the two credit profiles for pricing and eligibility. Always check the lender's disclosures and the prequalification flow to see which method they use.

A strong cosigner mainly helps borderline cases. If your credit or income nearly meets the threshold, a cosigner can raise the chance of approval, increase the maximum loan size, and move you into a better pricing tier, which lowers your rate. Improvements are largest when your issue is income or a thin credit file, and smaller when you have recent major derogatory marks. Prequal or soft-pull offers give the clearest signal of how much the cosigner shifts your terms.

Some lenders will still require minimums for both parties, so a cosigner with weak credit may not help. Ask whether the lender scores the primary, the lower score, or a blend. Confirm whether both incomes are included in debt-to-income calculations and whether either party can remove the cosigner later.

The cosigner accepts full liability for repayment. Missed payments and defaults hit both credit files. Collections, charged-off balances, and acceleration actions can be taken against either party. If you default, the cosigner faces identical collection risk and credit damage.

You usually need a cosigner when your income, credit, or credit history do not convince lenders you can repay, and you do not need one when your profile is comfortably strong.

Requires vs doesn't require signals:

• Requires: thin credit file, FICO roughly under 640, recent delinquencies or collections, high debt-to-income ratio, unstable or unverifiable income, recent bankruptcy or short credit history.
• Doesn't require: FICO roughly 700 or higher, low DTI, steady verifiable income, long credit history, and a solid banking relationship or existing loan/payment history with the lender.

Product rules vary by bank. Some lenders accept cosigners. Some only allow joint applicants, not cosigners. A few prohibit any cosigner. Very rarely a loan offers a cosigner-release option after on-time payments.

Always verify before you apply: review prequalification language, read eligibility footnotes in the product page, and check the application UI for 'add a cosigner' or 'joint applicant' fields. Ask customer service to confirm policy and cosigner-release terms. This prevents surprises and helps you pick a bank that matches your situation.

Adding a cosigner puts the loan on both credit files and can lift approval odds while tying both scores to the account. A hard inquiry may appear for both applicants. The new installment tradeline typically posts to both files. On-time payments help build positive history for you and the cosigner. Any late payments or charge-offs hurt both parties.

How scores move and what matters. Installment loans weigh payment history and term, not revolving utilization, so balances matter less than with cards. Still, new credit and a changed account mix can nudge scores. Paying the loan off early may shorten the 'paid as agreed' window slightly, which can modestly affect score calculations. Removing a cosigner is rare; lenders usually require refinancing into the primary borrower's name to release the cosigner.

Practical steps and where to learn more. Tell a cosigner the risks before you apply, monitor both reports, and set automatic payments. For plain-language guidance, see Experian credit education pages, Equifax's guide to credit reports, and TransUnion's credit education resources.

Yes, before you ask someone to back your loan, get a clear, honest yes about their willingness and capacity to cover payments if you default.

1. Can you afford the worst case, including full remaining balance and fees?
2. Will you check statements or get alerts, and how often?
3. What timeline or target will we use to remove you, for example refinance or pay off by X date?
4. How would cosigning affect your mortgage or auto loan plans and credit inquiries?
5. Are you comfortable with autopay, a joint budget, and an emergency reserve equal to at least 1–3 months of payments?

Agree on communication rules, who notifies whom, and a decision process for missed payments. Quantify liability in dollars so both sides know the risk. Set autopay and notifications now, and name a payoff/refinance target date. Encourage the cosigner to check their credit and future loan plans before signing.

Yes - some banks and credit unions will accept a nonfamily cosigner, but policies vary, so you must verify each lender before applying.

Check each lender's eligibility FAQ, loan terms, and application help text for any 'cosigner must be' language; if unclear, ask support and get email or chat confirmation. Capture screenshots or download the loan disclosure as proof. Use soft-pull prequalification offers that explicitly mention nonrelative or nonhousehold cosigners to avoid hard inquiries.

Policy phrases to search for:

• 'cosigner must be a relative'
• 'spouse or household member only'
• 'any qualified adult may cosign'

Document checklist to prepare:

• government ID, Social Security number or ITIN, recent pay stubs or tax returns, proof of residency, photo ID for both parties.

Prequal cues to confirm:

• lender uses a soft credit pull for prequal, written text stating nonfamily allowed, and a dated support response if policy is restrictive.

If a bank refuses a nonfamily cosigner, compare online lenders that explicitly permit nonrelative cosigners or local credit unions.

Start here: if a bank rejects your cosigner, pick safer options that still improve approval odds or buy you time.

• Secured personal loans using savings or a CD as collateral, lower rates and easier approval.
• Credit-builder loans that report on-time payments, they build score without needing a cosigner.
• Joint-borrower loans where you share responsibility and underwriting, not just a guarantor.
• Community lenders or CDFIs that accept thin files and offer counseling.
• Smaller loan amounts or longer terms to meet lender thresholds and reduce monthly strain.

Watch for traps, act on credit issues, and set limits. Predatory offers often skip credit checks, charge triple-digit APRs, or bundle mandatory insurance. Never accept APRs above 36% as a hard ceiling for safe borrowing. If your file is thin or mixed, wait 60 to 90 days, add on-time payments, pay down revolvers, and dispute clear errors before reapplying. Consider a paid professional review if reports look inconsistent or mixed.

Practical next steps to try now:

• Ask local credit unions about joint-borrower or secured options.
• Apply to a credit-builder product that reports to the big three bureaus.
• Compare total cost, fees, and loan servicing terms, not just the headline rate.

For trusted resources and lender lists, start with the CDFI Fund directory of community lenders and the CFPB guidance on personal loans. Stay cautious, choose options that build credit, and avoid high-cost quick fixes.

Most banks and credit unions will accept a cosigner, but policies, rate benefits, and documentation vary by lender so check before you apply.

• Do personal loans offer cosigner release?

  Rarely. Some lenders allow release after consistent on-time payments or refinancing, but many require refinancing to remove a cosigner. Check the lender's written policy before you borrow.

• Will both of us get a hard pull?

  Often yes. Many banks run hard credit checks on both applicant and cosigner during approval. Ask about a soft prequalification to estimate offers without harming credit.

• What documents does a cosigner need?

  Typically government ID, recent pay stubs or proof of income, and a Social Security number or ITIN; some lenders also request tax returns. Originals or certified copies may be required for identity verification.

• Can a non-U.S. citizen cosign?

  Policies vary, some lenders accept ITIN holders or lawful permanent residents, others require a Social Security number. Confirm eligibility with the bank and ask what proof of residency they need.

• How fast will it fund with a cosigner?

  Timing depends on verification steps, often 1–7 business days after approval; delays occur if additional documents or manual underwriting are needed. For rights and protections, see the CFPB guide on cosigner responsibilities and risks.

Choose a lender that lists cosigner rules up front and use prequalification to compare rates and impacts before applying.