Сo-signed Loans for April 2024

Get a co-signed loan from one of the lenders verified by our specialists. On 24.04.2024 there are 2 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
Offers: 2
Best Quick Loan Today 24.04.2024*
Mr. Payday
Need a Quick Loan Now?
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
up to $10.000
Get Your FREE Quote Today!
Get Your FREE Quote Today!

Take advantage of our loan selection system with a free credit check!

Coast Capital Savings
Personal Loan
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™

Effective interest rate on the product


Loan term for the financial product

60 months
Royal Bank of Canada
I appreciate the transparency in the loan terms provided by Royal Bank of Canada, with no hidden fees or charges.
Royal Bank of Canada
RBC provided me with a flexible loan repayment schedule, making it easier to manage.
Royal Bank of Canada
I encountered some hidden fees when repaying the loan with RBC, making it more expensive than I expected.
Royal Bank of Canada
Unfortunately, the loan terms offered to me by RBC turned out to be less favorable than those of other banks.
Royal Bank of Canada
It's very convenient to use RBC's online services to manage my loan and make monthly payments.
Royal Bank of Canada
I obtained my home loan with RBC, and they were very flexible in setting terms that suited my financial capabilities.

A co-signed loan is a financial arrangement where an individual, known as the co-signer, pledges to assume responsibility for repaying a loan in the event that the primary borrower fails to meet their payment obligations. This arrangement is typically utilized when the primary borrower faces challenges in securing the loan independently, often due to insufficient credit history, limited reliability, or inadequate income. For instance, individuals with a track record of missed payments or recent graduates who have yet to establish a credit history might struggle to qualify for a loan without the support of a co-signer.

Co-signing a loan involves a contractual agreement between the primary borrower and the co-signer, wherein the co-signer commits to covering the loan payments if the borrower defaults. This financial commitment is crucial for lenders, as it mitigates the risk associated with lending to individuals who may not meet the standard credit criteria on their own. While co-signing can be a generous way for friends or family members to assist one another, it demands careful consideration of the co-signer's financial capabilities and an understanding of the potential impact on their credit history.


  1. Joint Responsibility. One prominent feature of a co-signed loan is the shared responsibility between the primary borrower and the co-signer. Both parties are equally obligated to repay the loan, and any missed payments or defaults can prompt the lender to seek repayment from either party.

  2. Credit History Impact. The co-signer's credit history is directly affected by the loan. Positive payment behavior can enhance the co-signer's credit score, but any missed payments or defaults will also be reflected on their credit report. This shared credit impact underscores the importance of a strong financial relationship between the primary borrower and the co-signer.

  3. Approval Support. Co-signers are often necessary when the primary borrower lacks a robust credit history, reliability, or adequate income to secure the loan independently. The co-signer's positive credit profile and financial stability help bolster the loan application, increasing the likelihood of approval for the primary borrower.

  4. Financial Risk. One notable feature is the financial risk undertaken by the co-signer. If the primary borrower defaults, the co-signer is legally obligated to step in and cover the outstanding payments. This risk assessment is crucial for co-signers, requiring a thorough evaluation of their financial situation before committing to the arrangement.

  5. Debt-to-Income Ratio Impact. Co-signing can influence the co-signer's debt-to-income ratio, potentially affecting their ability to secure additional loans in the future. Lenders consider this ratio when assessing an individual's capacity to take on more debt, making it essential for co-signers to weigh the impact on their financial flexibility.

  6. Legal Obligation. Co-signing involves a legal commitment. The co-signer is bound by the terms outlined in the loan agreement and is subject to the same legal repercussions as the primary borrower in the event of non-compliance, emphasizing the gravity of the financial responsibility.

  7. Loan Terms Awareness. Co-signers must be well-informed about the loan terms before agreeing to co-sign. Details such as repayment schedules, interest rates, and potential fees should be thoroughly understood to ensure both parties are on the same page regarding the financial commitment.

  8. Relationship Dynamics. The co-signed loan often brings a relational aspect, frequently involving family members or close friends. Nurturing a strong and open line of communication is essential to navigating potential financial challenges and ensuring a healthy co-signing arrangement.

  9. Creditworthiness of the Primary Borrower. The co-signer's decision to co-sign is heavily reliant on their assessment of the primary borrower's creditworthiness. Trust in the borrower's ability to meet their financial obligations is paramount, influencing the co-signer's willingness to take on the associated risks.

Pros and Cons


Approval Assistance. One of the primary advantages of co-signed loans is that they help individuals with a limited credit history or low credit scores secure financing. The co-signer's stronger credit profile increases the likelihood of loan approval for the primary borrower.

Lower Interest Rates. A co-signer with an excellent credit history may enable the primary borrower to qualify for more favorable interest rates. This can result in lower overall borrowing costs and more affordable monthly payments.

Credit Building. For individuals seeking to establish or improve their credit history, successfully repaying a co-signed loan can positively impact their credit score. Timely payments contribute to a positive credit history for both the primary borrower and the co-signer.


Credit Risk for Co-Signer. The most significant drawback is the potential risk to the co-signer's credit. If the primary borrower misses payments or defaults on the loan, the co-signer's credit score can suffer, impacting their financial standing.

Strained Relationships. Co-signing loans, especially among family or friends, can strain relationships if financial difficulties arise. Defaulting on the loan may lead to tension, disagreements, and damaged personal connections.

Legal and Financial Responsibility. Co-signers bear the same legal responsibility for the debt as the primary borrower. If the borrower cannot meet their obligations, the co-signer is obligated to cover the payments, potentially leading to financial stress.

How to Get a Co-signed Loan?

Apply for a Loan

  1. Check Your Credit History. Obtain a copy of your credit report to assess your creditworthiness. This step is essential as it helps identify the necessity for a co-signer and provides insight into potential lenders' credit score requirements.

  2. Identify a Suitable Co-Signer. Approach individuals with a strong credit history and financial stability to serve as your co-signer. This person should be someone you trust and who trusts you, given the shared financial responsibility.

  3. Communicate Clearly. Discuss your financial goals, the purpose of the loan, and your repayment plan with the potential co-signer. Transparency is key to establishing trust and ensuring both parties are on the same page regarding the loan terms.

  4. Research Lenders. Identify lenders that accept co-signed loans and understand their specific requirements. Different lenders may have varying criteria for co-signers, such as minimum credit scores and income levels.

  5. Submit Loan Application. Complete the loan application, providing accurate and comprehensive information. Include details about both the primary borrower and the co-signer, as well as the purpose of the loan and the desired loan amount.

  6. Wait for Approval. Once the application is submitted, wait for the lender's decision. The approval process may involve a thorough evaluation of both the primary borrower's and co-signer's credit histories, income, and overall financial stability.

  7. Review Loan Terms. If approved, carefully review the loan terms, including the interest rate, repayment schedule, and any associated fees. Ensure that both the primary borrower and the co-signer understand their obligations.

  8. Sign the Loan Agreement. Once satisfied with the terms, both the primary borrower and the co-signer must sign the loan agreement. This legal document outlines the responsibilities of each party and the terms of repayment.

  9. Manage Repayments Responsibly. After securing the co-signed loan, make timely and consistent payments to build a positive credit history. Regular communication between the borrower and the co-signer is crucial to address any potential financial challenges.

  10. Explore Co-Signer Release Options. Some lenders offer co-signer release options after the primary borrower demonstrates responsible repayment behavior. Explore these possibilities to relieve the co-signer of their obligation, provided the lender approves.


  1. Credit Score. Borrowers need to have a credit score that meets the lender's minimum requirements. While the specific threshold varies among lenders, a higher credit score enhances the chances of loan approval.

  2. Active Bank Account. Having an active bank account is crucial for loan disbursement and repayment. Lenders often prefer direct deposit and automatic withdrawals for monthly payments.

  3. Income Verification. Lenders typically require proof of a stable income to ensure that borrowers have the financial capacity to repay the loan. This may involve providing pay stubs, tax returns, or other relevant documentation.

  4. Debt-to-Income Ratio. Lenders assess the borrower's debt-to-income ratio, comparing their existing debts to their income. A lower debt-to-income ratio increases the likelihood of loan approval, as it indicates a healthier financial position.

  5. Purpose of the Loan. Borrowers must clearly state the purpose of the loan, whether it's for education, purchasing a car, or debt consolidation. Some lenders may have specific loan products tailored to different purposes.

  6. Selection of a Suitable Co-Signer. If a co-signer is required, borrowers need to identify an individual with a strong credit history and financial stability. This co-signer should be willing to assume the responsibility of repaying the loan if the borrower defaults.

  7. Legal Age. Borrowers must be of legal age to enter into a contractual agreement. In most jurisdictions, this is typically 18 years old.


  1. Minimum Credit Score Requirements. Lenders specify a minimum credit score that borrowers must meet for loan approval. This requirement varies among lenders and is often higher for unsecured loans.

  2. Interest Rates. Lenders determine the interest rates based on the borrower's creditworthiness. Those with higher credit scores may qualify for lower interest rates, resulting in more affordable loan terms.

  3. Loan Terms. The terms of the loan, including the repayment period, are established by the lender. Borrowers should review and agree to these terms before signing the loan agreement.

  4. Origination Fees. Some lenders charge origination fees, which are upfront fees for processing the loan. Borrowers should be aware of any associated fees and factor them into the total cost of the loan.

  5. Co-Signer Release Policies. Certain lenders may offer co-signer release options, allowing the co-signer to be removed from the loan after the borrower demonstrates a history of responsible payments. Borrowers should inquire about and understand these release policies.

  6. Late Payment Penalties. Lenders specify penalties for late or missed payments. Borrowers need to be aware of these penalties and strive to make payments on time to avoid additional charges.

  7. Loan Amounts. Lenders establish minimum and maximum loan amounts. Borrowers should ensure that the requested loan amount aligns with their needs and the lender's limits.

  8. Repayment Schedule. Lenders provide a repayment schedule outlining when payments are due. Borrowers should carefully review this schedule and ensure that it aligns with their financial capabilities.

  9. Collateral Requirements (for Secured Loans). If the loan is secured, lenders may require collateral, such as a car or property. Borrowers need to understand the collateral requirements and the potential consequences of defaulting on the loan.

  10. Grace Periods. Some lenders offer grace periods, allowing borrowers a certain period after the due date to make payments without incurring late fees. Borrowers should be aware of any grace periods provided by the lender.

Best Places to Get a Co-signed Loan

  1. Fusion Credit Union distinguishes itself by offering a comprehensive range of loan amounts, accommodating both individual and business financial needs. With flexible loan terms spanning one to 25 years and competitive starting APRs, borrowers can tailor their repayment plans. Fusion Credit Union ensures a personalized and convenient borrowing experience by combining daily human contact with modern features like online applications and a mobile app. Notably, the credit union's loan accessibility extends to a broad spectrum of financial profiles, with the option to include a co-signer or co-borrower enhancing eligibility.

  2. Eastern Loans stands out as a preferred choice for individuals seeking short-term, smaller loan amounts, featuring a transparent APR of 23% and no prepayment penalties. Its inclusive approach eliminates the need for a credit history, broadening accessibility. The provision for a co-signer or co-borrower further increases approval chances. Eastern Loans' positive customer experience is reflected in its four-star TrustPilot rating, emphasizing a hassle-free borrowing process with same-day funding for urgent financial needs.

  3. Easyfinancial serves as a financial bridge, particularly catering to individuals lacking a credit history. Swift same-day funding addresses urgent financial needs, albeit with a relatively higher APR range. The flexibility of a loan term ranging from 24 to 78 months, coupled with perks like autopay and loyalty discounts, enhances borrower freedom. Noteworthy is easyfinancial's commitment to inclusivity, offering the option for a co-signer or co-borrower, providing an added layer of security and potentially increasing approval rates.

  4. Desjardins distinguishes itself with a versatile approach to co-signed loans, accommodating varying financial needs through flexible loan amounts and terms. This includes personalized perks and loyalty discounts, contributing to an attractive package for long-term customers. The provision of same-day funding ensures prompt access to funds, making Desjardins a favorable choice for those with urgent financial requirements. The emphasis on customer service is evident through their 24/7 support and regular human contact, reinforcing a commitment to a positive borrower experience.

Things to Pay Attention to

  1. Credit Scores. Ensure the borrower's credit score meets the lender's requirements. A higher credit score enhances the chances of loan approval and favorable terms. The co-signer should have a strong credit history, as this directly influences the interest rates and overall loan terms.

  2. Loan Terms and Conditions. Understand the interest rates offered by the lender. Lower interest rates can significantly impact the overall cost of the loan. Review the duration of the loan repayment period. Shorter or longer terms may impact monthly payments and the total amount repaid.

  3. Co-Signer Release Options. Inquire about the possibility of a co-signer release. Some lenders offer this option after the primary borrower demonstrates responsible repayment behavior. Understand the conditions under which the co-signer can be released from the loan obligation.

  4. Responsibilities and Risks. Clearly understand the legal and financial responsibilities of both the borrower and the co-signer. Be aware that missed payments or defaults by the borrower can impact the co-signer's credit and financial standing.

  5. Communication. Maintain open communication with the co-signer throughout the loan period. Discuss any financial challenges or changes in circumstances that may affect the ability to make timely payments.

  6. Loan Purpose and Amount. Clearly define the purpose of the loan and determine the exact amount needed. Avoid borrowing more than necessary to prevent unnecessary debt.

  7. Fees and Charges. Be aware of any origination fees, late payment penalties, or other charges associated with the loan. Factor these into the overall cost of borrowing.

  8. Loan Repayment Plan. Develop a detailed repayment plan that aligns with the borrower's financial capacity. Ensure both the borrower and co-signer are aware of the monthly payment schedule.

  9. Credit Report Monitoring. Regularly monitor credit reports for both the borrower and the co-signer. Check for any inaccuracies and address them promptly. Positive loan repayment behavior should be reflected on credit reports.

  10. Legal Documents. Review and understand all legal documents, including the loan agreement. Be aware of the terms and conditions, including any clauses related to default and the lender's recourse.

How to Repay a Co-signed Loan

  1. Understand the Terms. Review the loan agreement to fully understand the terms and conditions, including the repayment schedule, interest rates, and any fees associated with the loan.

  2. Set Up Automatic Payments. Explore the option of setting up automatic payments for the loan. Many lenders offer this service, which can help ensure that payments are made on time each month.

  3. Communicate with the Co-Signer. Maintain open communication with the co-signer. Keep them informed about your financial situation and any challenges you may face in making timely payments. Transparency is essential in avoiding potential conflicts.

  4. Monitor Credit Reports. Regularly monitor credit reports for both the borrower and the co-signer. Ensure that all payments are accurately reported and address any discrepancies promptly.

  5. Explore Repayment Options. Inquire about repayment options offered by the lender. Some lenders may allow for flexibility in repayment terms or offer hardship options if the borrower faces temporary financial difficulties.

  6. Make Additional Payments. If possible, consider making additional payments towards the loan principal. This can help reduce the overall interest paid and shorten the loan term.

  7. Stay Informed about Co-Signer Release. Understand the conditions under which the co-signer can be released from the loan obligation. Some lenders offer co-signer release options after the borrower demonstrates a history of responsible payments.

  8. Prioritize Loan Repayment. Prioritize the co-signed loan repayment over non-essential expenses. This ensures that the loan remains a financial priority and helps build a positive credit history.

  9. Consider Loan Prepayment. Evaluate the option of prepaying the loan if there are such loan funds available. Check the loan agreement for any prepayment penalties and, if none, consider paying off the loan ahead of schedule.

  10. Seek Financial Counseling (if needed). If facing challenges in making payments, seek financial counseling. Professionals can guide managing debt, negotiating with lenders, and developing a sustainable repayment plan.

Reasons for Getting Rejected for a Co-signed Loan

  1. Insufficient Credit Score. The borrower or co-signer may have a credit score below the lender's minimum requirement. Lenders often set a threshold for creditworthiness, and if either party falls short, approval may be denied.

  2. Low Income or Unstable Employment. Lenders assess the borrower's income to ensure they have the means to repay the loan. If the borrower has a low income or an unstable employment history, it may lead to rejection.

  3. High Debt-to-Income Ratio. A high debt-to-income ratio, calculated by dividing monthly debt payments by gross monthly income, can signal financial strain. Lenders may reject the application if the borrower's ratio exceeds their acceptable limit.

  4. Unsatisfactory Payment History. A history of missed or late payments on existing debts can negatively impact credit scores. Lenders may view this as a red flag, leading to rejection.

  5. Limited Credit History. Individuals with limited or no credit history may face challenges in securing a co-signed loan. Lenders rely on credit history to assess creditworthiness, and the absence of a credit history can result in rejection.

  6. Unstable Financial Background. Lenders may be cautious if either the primary borrower or co-signer has a history of bankruptcy, foreclosure, or financial instability. This may raise concerns about the ability to meet repayment obligations.

  7. Inadequate Loan Purpose or Documentation. Failing to clearly articulate the purpose of the loan or providing incomplete documentation may lead to rejection. Lenders need a comprehensive understanding of the borrower's intentions and financial situation.

  8. Mismatched Loan Amount and Repayment Capacity. Requesting a loan amount that exceeds the borrower's demonstrated ability to repay may result in rejection. Lenders evaluate the appropriateness of the loan amount based on the borrower's financial capacity.

  9. Co-Signer's Credit Issues. If the co-signer has credit issues, such as a low credit score or a history of missed payments, it can contribute to the rejection. Co-signers with strong credit profiles are preferred by lenders.


  1. Secured Personal Loan. Secured personal loans are loans that are backed by collateral provided by the borrower. The collateral could be an asset, such as a savings account, a vehicle, or valuable property. The presence of collateral reduces the risk for the lender, making it an option for individuals with lower credit scores or those who may not qualify for an unsecured loan. In the event of default, secured personal loan lenders can seize the collateral to recover the outstanding balance.

  2. Peer-to-Peer Lending (P2P). Peer-to-peer lending, often abbreviated as P2P, is a financial model that connects individuals looking to borrow money directly with investors willing to lend. Online platforms facilitate this lending process, allowing borrowers to create loan listings with requested amounts and terms. Investors can then choose to fund portions of loans, spreading their investment across multiple borrowers. P2P lending may offer more flexible terms and rates compared to traditional lending institutions, and the entire process typically occurs online.

  3. Credit Builder Loan. A credit builder loan is a financial product designed to help individuals establish or improve their credit history. Unlike traditional loans where funds are disbursed upfront, with a credit builder loan, the borrowed amount is typically held in a savings account or certificate of deposit (CD) as collateral. The borrower makes regular payments over the loan term, and once the loan is repaid, they receive access to the accumulated funds plus any interest earned. This type of loan can be beneficial for those with limited or poor credit, as timely payments contribute positively to their credit profile.

  4. Online Installment Loan. An online installment loan is a type of personal loan that borrowers can apply for and manage entirely online. These loans are repaid in fixed, scheduled installments over a specified period, typically ranging from a few months to several years. Online installment loans may be offered by traditional lenders or online financial institutions. Borrowers can access a variety of loan amounts and interest rates, and the application process often involves submitting digital documentation. This type of loan provides flexibility and convenience for borrowers who prefer the online application and management experience.

Editorial Opinion

Co-signed loans serve as a financial tool allowing individuals with limited credit history or lower credit scores to access financing opportunities with the support of a co-signer. While they can provide a valuable lifeline for borrowers facing challenges in securing loans independently, it's crucial for both parties involved to weigh the potential risks. Co-signers take on shared responsibility for the debt, exposing themselves to financial implications if the primary borrower faces difficulties in repayment. The decision to co-sign should be approached with careful consideration of the borrower's financial reliability and the co-signer's ability to assume the obligation in case of unforeseen circumstances.


Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

  1. Make sure to confirm whether the lender is licensed to operate in your province. You can verify this information with your state regulator or attorney general.

  2. Check if the lender is a member of a reputable association, such as the Canadian Lenders Association (CLA). Membership in such organizations may provide an extra level of reliability.

  3. Carefully review all the terms and conditions of your payday loan contract.

  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.


At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.


Are you more likely to get approved for a loan with a cosigner?

Co-signing a loan significantly increases the likelihood of approval, especially for individuals with less-than-ideal credit scores. A cosigner acts as a guarantor, providing an additional layer of financial security for lenders. Their good credit history and financial stability reassure the lender, making them more willing to extend credit to the primary borrower. This arrangement can lead to better loan terms, including lower interest rates or higher loan amounts.

However, it's crucial for both parties to understand the shared responsibility, as any missed payments can impact both the primary borrower's and the cosigner's credit.

Does сo-signing a loan affect your credit?

Loans with a co-signer do affect the credit of both the primary borrower and the cosigner. The loan appears on both credit reports, and any missed or late payments by the primary borrower can negatively impact both credit scores. On the positive side, timely repayments can contribute positively to their credit histories. Potential cosigners need to recognize the potential credit implications before agreeing to co-sign a loan, as they become equally responsible for the debt.

Can I get a loan with a 500 credit score with a cosigner?

While having a loan with a co-signer can improve the chances of approval with a 500 credit score, individual lenders have varying credit score requirements. Some lenders may consider applicants with lower credit scores when a cosigner is involved, but the interest rates and terms offered may be less favorable. The cosigner's good credit can offset the primary borrower's lower score, increasing the overall creditworthiness of the application.

Loan Terms