8 oct 2026 ·
Advertiser: Every figure comes from the lender’s own website or a named independent source, and our method is explained at the end of the article.
If your credit is thin or your income is low, adding someone with stronger credit to your application can help you get approved or land a lower rate. But here’s what many borrowers don’t know: very few personal loan lenders accept a true cosigner. Most offer joint loans with a co-borrower instead.
Below we explain the difference, then compare lenders that allow cosigners and lenders that allow co-borrowers, using terms published as of October 8, 2026.
Cosigner vs co-borrower: what’s the difference?
| Cosigner | Co-borrower (joint applicant) | |
|---|---|---|
| Responsible for repaying the loan? | Yes, if the main borrower doesn’t pay | Yes, equally from day one |
| Owns or receives the loan money? | No | Yes, shares access to the funds |
| Loan appears on their credit report? | Yes | Yes |
| How common for personal loans? | Rare | Common |
In both cases, the second person is on the hook for the full debt. The Federal Trade Commission warns that a cosigner «may have to pay up to the full amount of the debt if the borrower does not pay,» plus late fees and collection costs (FTC). The main practical difference is that a co-borrower also shares the money, while a cosigner only guarantees it.
Our top picks at a glance
Navy Federal is our top pick if you’re eligible to join, because it accepts both cosigners and co-borrowers and charges no origination fee. First Tech is the best cosigner option for everyone else who can become a member. If a joint loan works for you, the online lenders below widen your choices.
| Lender | Cosigner | Co-borrower | APR range | Origination fee | Loan amounts |
|---|---|---|---|---|---|
| Navy Federal Credit Union | Yes | Yes | 8.74% – 18.00%* | None | $250 – $150,000 |
| First Tech Federal Credit Union | Yes** | Not confirmed | From 11.99% | None | $500 – $50,000 |
| PenFed Credit Union | No* | Yes (must also be a member) | 6.09% – 17.99%* | None | $600 – $50,000 |
| Upgrade | Not offered | Yes | 7.74% – 35.99% | 1.85% – 9.99% | $1,000 – $50,000 |
| SoFi | Not offered | Yes | 6.99% – 35.49% (with discounts) | None on standard offers | $5,000 – $100,000* |
| Happen Bank (formerly LendingClub) | No* | Yes | 5.96% – 35.99% | 0% – 8% | $1,000 – $75,000 |
| OneMain Financial | No** | Yes | 11.99% – 35.99% | 1% – 10% or $25 – $500 | $1,500 – $30,000 |
*Reported by NerdWallet. **Reported by CNBC Select (September 29, 2026). «Not offered» means the lender’s site describes only joint applications. All other figures come from each lender’s website, checked October 8, 2026.
Lenders that accept a cosigner
1. Navy Federal Credit Union — best overall if you’re eligible
Navy Federal offers both co-signed and joint personal loans, according to NerdWallet, with no origination fee and an APR capped at 18%. It lends from just $250 up to $150,000, with terms from six months to five years, and most members get an instant decision and same-day funding. You can also secure the loan with savings or a vehicle.
- Pros: cosigners and co-borrowers accepted, no origination fee, low APR cap, very wide loan range
- Cons: membership is limited to military members, Department of Defense employees, veterans and their families
2. First Tech Federal Credit Union — best cosigner option for non-military borrowers
CNBC Select calls First Tech «one of the few lenders that allows you to apply with a co-signer.» First Tech says it charges no application, origination or prepayment fees, and lends $500 to $50,000 over 12 to 60 months. Its rates start at 11.99% APR. You must become a member; Finder reports eligibility paths through more than 1,700 partner employers, participating communities and family members of existing members.
- Pros: accepts cosigners, no fees, small loans available
- Cons: membership required; starting APR higher than some online lenders
Lenders that accept a co-borrower
If the person helping you is willing to share the loan, these lenders allow joint applications. Both of you will be equally responsible for repaying it.
3. PenFed Credit Union — best joint loan with a low APR cap
PenFed allows joint loans as long as the co-borrower is also a PenFed member, according to NerdWallet. Membership is open to residents of all states with a $5 deposit. It charges no origination fee and caps its APR at 17.99%.
- Pros: low APR cap, no origination fee, loans from $600
- Cons: both borrowers must be members; no cosigners; terms up to 5 years
4. Upgrade — best joint loan for fair credit
Upgrade accepts joint applications and says applying with another person may help you qualify for a bigger loan or a better rate. Both applicants’ credit profiles are considered, and terms run from 24 to 84 months.
- Pros: fair-credit friendly, long terms, secured options
- Cons: origination fee of at least 1.85%
5. SoFi — best joint loan for large amounts
SoFi allows a co-borrower and lends up to $100,000 with no mandatory fees. If you’re declined, you can reapply sooner with a different co-borrower.
- Pros: no mandatory fees, high loan limit, same-day funding typical
- Cons: $5,000 minimum; usually needs good credit
6. Happen Bank (formerly LendingClub) — best for consolidating debt together
Happen Bank says applying with another person can help you qualify for a better rate or a larger loan. NerdWallet notes the co-borrower should have good credit, verifiable income and a debt-to-income ratio of 40% or less. Co-signed loans aren’t offered.
- Pros: low starting APR, fee can be 0%, terms up to 7 years
- Cons: fee can reach 8%; strict co-borrower criteria
7. OneMain Financial — best joint loan with in-person help
OneMain accepts co-applicants and has more than 1,300 branches. It has no required minimum credit score, according to NerdWallet, and offers vehicle-secured loans. CNBC Select reports it doesn’t allow cosigners.
- Pros: accessible with lower scores, branches, very fast funding
- Cons: high starting APR (11.99%); origination fees; facing a 2026 state lawsuit over add-on products, which it denies
How a cosigner or co-borrower can lower your cost
A second applicant with strong credit can change your offer dramatically. Credible’s data on closed loans from October 2025 to September 2026 shows how average APRs rise as credit scores fall. Here’s what that gap means on a $10,000 loan over three years:
| Credit score (Credible data) | Average APR | Monthly payment | Total interest |
|---|---|---|---|
| 740–799 | 12.34% | About $334 | About $2,016 |
| 670–739 | 19.22% | About $368 | About $3,236 |
| 580–669 | 28.42% | About $416 | About $4,973 |
Source for APRs: Credible. We calculated payments with a standard loan formula.
If adding a co-applicant moved you from the fair range to the very good range, you could save close to $3,000 in interest on this loan. Lenders weigh both applicants differently, though, so there’s no guarantee you’ll get the rate your partner would get alone.
The risks for the person who signs
Before someone agrees to help you, they should understand exactly what they’re taking on. According to the Federal Trade Commission:
- They may have to repay the whole loan, plus late fees and collection costs, if you don’t pay.
- The lender can go after them directly, without trying you first, unless their state requires otherwise. That can include lawsuits and wage garnishment.
- The loan shows on their credit report. Your late payments can damage their credit, and the debt can make it harder for them to borrow.
- It’s hard to get off the loan. Both the lender and the borrower must agree to release a cosigner, and lenders rarely do.
Federal law requires lenders to give cosigners a written notice that begins: «You are being asked to guarantee this debt. Think carefully before you do. If the borrower doesn’t pay the debt, you will have to.»
Protect the relationship
- Agree in writing how you’ll handle a missed payment.
- Give your cosigner or co-borrower access to the loan account, or ask the lender to send them statements.
- Set up autopay so payments are never late.
- Keep an emergency fund so a job loss doesn’t land on them.
How to apply with a cosigner or co-borrower
- Choose the right person. Ideally someone with good credit (670+), steady income and a low debt-to-income ratio, who fully understands the risks.
- Decide which arrangement you need. If they’ll share the money, a joint loan works. If they only want to guarantee it, look for a lender that accepts cosigners, such as Navy Federal or First Tech.
- Check membership rules. Credit unions may require both of you to join.
- Prequalify together where possible. Many lenders let joint applicants see estimated rates with a soft credit pull.
- Gather documents for both people: IDs, proof of income and bank account details.
- Read the full agreement together, including the cosigner notice, before either of you signs.
If you can’t find a cosigner
- Try lenders that weigh more than your score. Upstart’s model considers education and employment. See our Upgrade vs Upstart comparison.
- Offer collateral. A secured loan backed by your car or savings may get you approved on your own. Upgrade, OneMain and Navy Federal offer secured options.
- Start smaller. A smaller loan can be easier to qualify for and helps you build credit for next time.
- Use a credit union. Federal credit unions can’t charge more than 18% on most loans, and some offer small payday alternative loans.
- Build your credit first. A few months of on-time payments and lower card balances can move you into a better rate tier.
For more options, see our guide to the best personal loans for fair credit.
How we chose these lenders
We looked for lenders that let a second person join a personal loan, either as a cosigner or as a co-borrower. We ranked them on five factors:
- Second-applicant options (30%): whether cosigners, co-borrowers or both are accepted, and any extra requirements
- Cost (30%): APR range and fees
- Access (15%): membership rules and credit requirements
- Loan fit (15%): loan amounts and terms
- Speed and transparency (10%): funding time and how clearly policies are published
We used each lender’s official website first, checked on October 8, 2026. Lenders often don’t publish their cosigner policy clearly, so we also relied on NerdWallet and CNBC Select and say which source each detail comes from. We didn’t apply for these loans ourselves. We review this list at least once every quarter.
Frequently asked questions
Which lenders allow cosigners on personal loans?
Few do. Navy Federal Credit Union offers co-signed loans, according to NerdWallet, and CNBC Select reports that First Tech Federal Credit Union allows cosigners. Most online lenders, including Upgrade, SoFi, Happen Bank and OneMain, accept co-borrowers on joint loans instead.
Is a co-borrower the same as a cosigner?
No. Both are responsible for the debt, but a co-borrower shares the loan money and is an equal owner of the loan from the start. A cosigner guarantees repayment without receiving the money.
Does a cosigner need good credit?
Usually, yes. A cosigner or co-borrower helps most when their credit and income are stronger than yours. A score of 670 or higher is a common target.
Does cosigning hurt your credit?
It can. The loan appears on the cosigner’s credit report, and any late payments by the borrower can lower their score. The debt can also make it harder for them to qualify for new credit.
Can a cosigner be removed from a personal loan?
Only if both the lender and the borrower agree, according to the FTC, and lenders rarely do. Refinancing into a new loan in the borrower’s name alone is often the only way out.
Can I get a personal loan with a cosigner and bad credit?
Possibly. A cosigner or co-borrower with strong credit can improve your chances, but the lender still looks at your own credit and income. Credit unions and lenders with secured options may also help.
Disclaimer
This article is for general information only and is not financial or legal advice. We are not a lender or a financial advisor. APRs, fees, requirements and cosigner policies shown are those published by each lender, or reported by the sources cited, on the date above and may change at any time. Anyone who cosigns or co-borrows is legally responsible for the debt. Always read the full loan agreement, including any notice to cosigner, before signing.