Personal Loans With a Cosigner or Co-Borrower: Who Allows Them and What It Costs the Other Person
Adding a second person with stronger credit or more income can turn a decline into an offer, or a high rate into a lower one. It also hands that person your debt if anything goes wrong. Before you ask someone, know which kind of second applicant the lender accepts and exactly what the other person is signing up for.
Key takeaways
- A cosigner guarantees your debt; a co-borrower shares the loan with you. Many personal loan lenders allow one, the other or neither.
- On their own pages, Upgrade and OneMain accept joint applications, Oportun allows a cosigner "in certain situations," and Best Egg says it offers individual loans only.
- Federal rules require lenders to give a cosigner a written notice that they "may have to pay up to the full amount of the debt."
- None of the lender pages we checked describes a way to remove a second person from an existing personal loan. Refinancing in your own name is the usual exit.
This is one of the borrower situations in our personal loans by credit score and situation hub.
What is the difference between a cosigner and a co-borrower?
| Cosigner | Co-borrower (joint applicant) | |
|---|---|---|
| Who receives the money | You | Shared |
| Who owes the debt | You, and the cosigner if you do not pay | Both of you, equally |
| Can the lender collect from them first? | Yes. The federal cosigner notice says the creditor "can collect this debt from you without first trying to collect from the borrower" | Yes, both are responsible |
| Shows on their credit report | Yes | Yes |
| What the lender weighs | Their credit and finances support yours | Both credit profiles are taken into account (Upgrade) |
Sources: FTC cosigner notice (16 CFR 444.3); Upgrade; OneMain. Checked October 1, 2026.
Upgrade's own article describes a cosigner as someone who "agrees to share the legal responsibility of the debt with you," and adds that "a cosigned loan appears on both the borrower's and the cosigner's credit reports." OneMain says that on its joint loans "all parties involved are equally responsible for repaying the loan, and any default can negatively affect each person's credit."
Which lenders allow a cosigner or co-borrower?
Here is what four lenders say on their own pages, checked October 1, 2026.
| Lender | Second applicant allowed? | In the lender's words | Published terms |
|---|---|---|---|
| Upgrade | Joint applications | "Upgrade accepts joint applications." Also: "Joint applications may not be available for all personal loan offers." | APRs 7.74% to 35.99%; $1,000 to $50,000; 24 to 84 months |
| OneMain Financial | Joint loans | "Apply online for a $1,500 - $30,000 joint personal loan." | $1,500 to $30,000 joint |
| Oportun | Cosigner, sometimes | "You may be able apply for a personal loan through Oportun with a cosigner in certain situations. We'll let you know when you apply if you're eligible." | Amounts from $300 to $10,000 on its personal loan page |
| Best Egg | No | "You cannot get a joint Best Egg loan, as only individual Best Egg loans are available currently." | Not applicable |
If you are deciding between two of these, our Upgrade vs Best Egg comparison covers that matchup in detail, including this difference.
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What does the cosigner risk?
The Federal Trade Commission's Credit Practices Rule requires lenders to hand a cosigner a separate "Notice to Cosigner" before they become obligated. Its text includes:
- "You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount."
- "The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc."
- "If this debt is ever in default, that fact may become a part of your credit record."
The FTC's consumer guide adds a risk that surprises many cosigners: the loan can stop them getting credit "even if the main borrower pays on time," because "lenders will consider the loan you cosigned as your obligation."
Before anyone signs. The FTC suggests the cosigner ask the lender to send monthly statements or to agree in writing to notify them if a payment is missed, so they can step in before the whole balance is called. The lender does not have to agree, but it may.
When does a cosigner actually help?
A second applicant helps most when your own file is the weak link:
- Fair credit. With a score around 650, a stronger co-applicant may move you to a better pricing tier. See personal loans with a 650 credit score for what that band typically sees.
- Thin or no credit file. A co-applicant with history gives the lender something to underwrite. Our no credit history guide covers other routes too.
- ITIN holders without U.S. credit history, where a cosigner with established credit can fill the gap. Read personal loans with an ITIN first, because ID rules vary by lender.
- Income too low for the amount you need, where the lender also weighs a co-borrower's finances. Ask the lender how it counts a co-applicant's income.
How much a better profile can be worth: LendingTree's Q2 2026 offer data shows average APRs of 27.79% for fair credit (580 to 669) and 23.27% for good credit (670 to 739). On $5,000 over 36 months, that is $206.25 a month vs $194.25, or $7,425.00 vs $6,993.00 in total. Your actual offer depends on both applicants and the lender. Check any offer in the personal loan payment calculator.
Representative example. For a $5,000 loan at a 10% APR over 36 months, the monthly repayment would be $161.34. Over the term, the total repayment would amount to $5,808.24, with $808.24 in interest. The loan terms range from 6 months to 12 years, with APRs between 5.99% and 35.99%. The exact rate you receive depends on factors like your creditworthiness, loan size, and repayment schedule. Better rates are typically offered to those with excellent credit.
Can you remove a cosigner later?
Plan as if the answer is no. None of the lender pages we checked describes a release process for a cosigner or co-borrower on an existing personal loan. The practical exit is to refinance: once your own credit and income can carry the loan, apply for a new loan in your name alone and use it to pay off the joint or cosigned one. That is a new application with a new credit check, so it only works once you would qualify on your own.
How should you apply with a second person?
- Confirm the lender's rule first. Cosigner, joint applicant or neither. Upgrade, for example, notes joint applications "may not be available for all personal loan offers."
- Both of you check your credit. A weak co-applicant can hurt rather than help.
- Prequalify where possible. The CFPB says soft inquiries "will not affect your credit scores," while a full application's hard inquiry can.
- Agree in writing between yourselves who pays what, and what happens if one of you cannot.
- Set up autopay from the account with the steadiest balance.
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Frequently asked questions
Do most personal loan lenders allow cosigners?
Policies vary. Among the lenders we checked, Upgrade and OneMain accept joint applications, Oportun allows a cosigner in some cases, and Best Egg offers individual loans only.
Does cosigning hurt the cosigner's credit?
It can. The loan appears on their report, any default may become part of their credit record, and the FTC notes it can limit their ability to get new credit even if you pay on time.
Is a co-borrower better than a cosigner?
It depends on the lender and your situation. A co-borrower shares the loan, and the lender weighs both applicants' credit. A cosigner backs your loan. Both are fully liable if payments stop.
Can the lender go after my cosigner before me?
Yes. The federal cosigner notice states that the creditor "can collect this debt from you without first trying to collect from the borrower."
How do I take my cosigner off the loan?
The lenders we checked do not publish a release process for personal loans. Refinancing into a new loan in your name only is the usual route once you qualify alone.
Related: Personal loan with a 650 credit score · Loans with no credit history · Personal loans with an ITIN · Next step: Personal loan lender reviews
Sources
- Federal Trade Commission, "Cosigning a Loan FAQs," accessed October 1, 2026.
- eCFR, "16 CFR 444.3, Unfair or deceptive cosigner practices," accessed October 1, 2026.
- Upgrade, "Personal Loans," accessed October 1, 2026.
- Upgrade, "How do joint applications work?," accessed October 1, 2026.
- Upgrade, "Can You Get a Personal Loan With a Cosigner?," accessed October 1, 2026.
- Best Egg, "Can I get a joint Best Egg loan?," accessed October 1, 2026.
- OneMain Financial, "Joint Personal Loans," accessed October 1, 2026.
- Oportun, "FAQs: Frequently Asked Questions," accessed October 1, 2026.
- Oportun, "Personal Loans," accessed October 1, 2026.
- LendingTree, "Best Personal Loans with the Lowest Rates" (Q2 2026 offer data), accessed October 1, 2026.
- Consumer Financial Protection Bureau, "What is a credit inquiry?," accessed October 1, 2026.
Loans Generator is not a loan provider or broker. We connect users with lending partners who may offer loans. Submitting a connection request on our site does not count as a loan application. To receive an actual loan offer, you must apply directly with a lender. We cannot guarantee loan approval or the terms shown on our website. Always review the loan agreement carefully before proceeding. Availability, rates, and terms vary by lender and by state. Rates and lender policies cited on this page were checked on October 1, 2026 and change without notice. This page is general information, not legal or financial advice.