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

Having a cosigner has many perks, but there are two main benefits: You increase your chances of getting approved. Because a cosigner takes on some of the responsibility for the loan, having one lessens the lender’s risk. That benefit makes them more likely to approve your loan application.

What happens when you add a co signer to a loan?

After adding a co-signer with a 720 credit score and annual income of $70,000, the interest rate dropped 10 percentage points. The borrower saved more than $1,700 over the life of the loan with the addition of a co-signer. (This pricing example doesn’t include fees.)

Where can I get a co signed personal loan?

Few major banks still offer personal loans, but PNC does and allows its borrowers to get a co-signed loan. Other banks, like Wells Fargo, offer joint loans. What’s the difference between a co-signed loan and a joint loan? Adding a co-signer helps one person qualify for a loan that he or she will use and repay alone.

What’s the interest rate on a FreedomPlus co signed loan?

In an example of a real loan provided by FreedomPlus, a borrower with a FICO score of 630 and annual income of $30,000 was approved for a three-year, $10,000 loan with an interest rate of 18.49%. After adding a co-signer with a 720 credit score and annual income of $70,000, the interest rate dropped 10 percentage points.

Who is responsible for paying back a co signed personal loan?

With a joint or co-signed personal loan, you add a second borrower to your loan application. You’re both responsible for paying back the loan. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page.

Who is liable for late fees on a cosigned loan?

Cosigning a loan introduces a high degree of liability and a low degree of benefit for the cosigner. The lender can legally hold you liable for 100% of the balance, including interest, late fees and collection costs.

Are there any lenders that accept a cosigner?

Lenders That Accept a Cosigner for Personal Loans | LendingTree A cosigner with good credit can help you qualify for a personal loan. Explore the top lenders that accept a cosigner for personal loans. A cosigner with good credit can help you qualify for a personal loan. Explore the top lenders that accept a cosigner for personal loans.

When does it make sense to cosign a loan?

You can afford the risk: If you can afford to take the risk and you just want to do it, then it may make sense to cosign. This might be the case if you have plenty of extra cash flow and substantial assets available to pay off a loan if your borrower defaults.

Who is responsible for repayment of a cosigned loan?

A cosigned loan creates a legal responsibility for repayment of debt for both parties on the loan. Each party is 100% responsible for the repayment of the debt. An authorized user has access to credit and a credit card in their name, yet have no legal responsibility for making payments.