What Is A Cosigner? A cosigner aids in bearing the financial responsibility for a loan or other type of credit.

When applying for a loan, having a cosigner can make it much easier to get approved. But what is a cosigner and how does it work?

A cosigner is someone who agrees to be equally responsible for the repayment of the loan if the primary borrower fails to do so. 

Rather than a joint borrower, a cosigner is someone who takes responsibility for the loan without having any of the rights or ownership of the loan. This means that a cosigner has no say in how the loan is used and will not make payments on the loan themselves unless the primary borrower fails to pay.

The cosigner must have good credit, which can be used to offset any significant blemishes on the primary borrower’s credit history. The cosigner is often a family member or close friend, but can also be an unrelated individual who simply wants to help out the borrower.


  • A cosigner is someone who agrees to take responsibility for a loan or other financial obligation if the primary borrower fails to make payments.
  • A cosigner is generally used when someone has a limited credit history, low income or poor credit score.
  • Getting a cosigner with good credit and adequate income can be advantageous for borrowers who may not qualify on their own.
  • It's important to understand that when co-signing for someone else, you'd be held accountable if they don't make the loan payments.
  • Lenders appreciate the extra layer of assurance that a cosigner provides and may offer more attractive terms as a result.
  • When denied a loan as an individual, there are steps you can take to find a cosigner and increase your chances for acceptance.

Evaluate Your Need For A Cosigner

Now that you know what a cosigner is, it is important to consider if you need one. It may be advantageous for those with limited credit history or a bad credit score, but having a cosigner also means that someone else would be held accountable if payments were not made on time.

One way to evaluate if you need a cosigner is by looking at the interest rate and terms offered in comparison to what would be available with a cosigner. Depending on your financial situation, it may be more beneficial to seek out a cosigner and take advantage of better loan terms.

If you are looking to build your own credit score back up, an effective strategy would be to receive a low-interest loan that the cosigner and you can pay off promptly. Personal loans can be used without having to put up collateral. 

Often, individuals with a poor credit history struggle with finding lenders willing to accept them, so having a reliable cosigner to provide support as you rebuild your credit can be very beneficial.

Finding A Cosigner

Finding the right cosigner can be tricky. With both the cosigner's and the borrower’s credit histories at stake, it is important to take time to look for someone who has a good credit score and is financially capable of taking on the responsibility. This will also boost your chances of getting approved for the loan.

Additionally, they must be willing and able to make payments if necessary, so make sure to discuss the implications of cosigning beforehand. If the cosigner has confidence in their ability to make payments on time, they may be a good choice.

It is important to consider all options before selecting the best one for your needs. Family and friends may have a personal investment in the situation that could prove beneficial but also carry emotional implications. Making an informed decision is the best path forward when selecting a cosigner.

If the reason for your need for your cosigner's help is sufficient, they may be willing to bear the risk. Although your cosigner won't necessarily require interest on the loan, it is important to make sure that they feel appreciated. Remember, the cosigner to pay off debt is taking on the risk that could potentially harm their credit score.

Step #1: Check Your Credit Score

The first step to getting a loan should always be to access your credit score. By knowing your credit score, you will be able to determine which loan options are available to you and if a cosigner is necessary. When checking your credit score, a soft check will allow you to view your credit score without hurting it.

It is also important to verify the credit score of your potential cosigner. The reason why the cosigner would need to have a high credit score is that they will be responsible for repaying the loan if you cannot and lenders want to know that they are making a safe investment. Typically, your cosigner would require a minimum credit score of 670 to be approved for a loan.

Step #2: Evaluate Multiple Lenders

Although it is helpful knowing that a cosigner can help to pay off the loan if the borrower is unable to, it is important to evaluate multiple lenders. Lenders provide different interest rates based on credit score and the amount being borrowed. Comparing different lenders will help you find the best loan option with a lower interest rate.

By using a debt repayment calculator and entering the associated APRs (annual percentage rates) of the loan, you can estimate how much principal and interest will be due each month. This step helps to ensure that you or your cosigner will not struggle financially to make payments on the loan.

Step #3: Apply And Pay Off Your Loan

When you have the best cosigner in your social network and the best loan option for your credit score, you can now apply for the loan. The cosigner will also need to be present when applying with you and provide their consent as well.

Once the loan is approved, you will be required as the primary borrower to set up automatic payments for a timely repayment of the loan. Ideally, your cosigner shouldn't have to step in due to your timely payments and in the end, you will be able to pay off debt with the help of a cosigner only if necessary.

Now that you know what a cosigner is, you may be able to use this information to manage your debt and improve your financial situation. Whether it is using your newly approved loan for debt consolidation or any other approved reason, having a cosigner could help you in the long run.

We at Credit9 understand the challenges you face when managing multiple debts and being in a position where you may need a cosigner, and we're here to help. 

Our mission is to provide you with the guidance, support, and expertise necessary to make informed financial decisions. By exploring our range of personal loans, you can take the first step towards a brighter financial future.

Together, we can help you become debt-free and empower you to achieve your financial goals.

How Credit9 Can Help You

Since 2018, Credit9 has provided over $200 Million in loans to over 15,000 of our customers, and we’re confident we can help you too. For more information about Credit9’s unique debt consolidation services, contact us today to see how we can help you consolidate your debts and receive a free, no-obligation, and fully-customized Credit9 loan solution!