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Online Installment Loans With Cosigner
31 Aug 2018

Where to Find Online Installment Loans With Cosigner

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If you find yourself in a financial jam, you may be considering loans with cosigner.

These bad credit loans are sometimes risky for the cosigner but for people with bad credit they can be a lifesaver because they usually come with better terms with more affordable outcomes.

It may be typical to find these kinds of loans with regards to big-ticket purchases like a mortgage or a car.

But when it comes to taking out a personal loan, finding an installment loan that allows you to have a cosigner may be a challenge.

Well, challenge accepted. Here’s your guide to online installment loans with a cosigner.

Check out for more tips on installment loans.

What Are Loans with Cosigner?

A loan with cosigner, also known as a cosign loan, is a lending practice in which a person with bad credit may qualify for certain loan terms only if a person with better credit cosigns onto the loan.

What is a Cosigner?

A cosigner is usually a family member or close friend. It’s a trusted person in the borrower’s inner circle who vouches for the borrower to the extent that they agree to pay for the loan if the borrower defaults.

From the lender’s perspective, a cosigner can make the difference in whether a borrower can get a personal loan and what the terms of the loan will be. That’s because cosigners on any loan reduce risk.

This creates a win-win situation for the lender and the borrower, by transferring most of the risk to the cosigner. That’s why it’s important that a cosigner be someone who knows the borrower and trusts them implicitly.

Cosigner vs Co-borrower

A cosigner and co-borrower are two different things. In short, a cosigner doesn’t receive any part of the loan funds. While a co-borrower is a joint applicant who receives funds if a loan is approved.

What is a Cosign Loan?

So what exactly is a cosign loan? In summary, a cosign loan is any loan where someone else with better credit signs loan paperwork to help a borrower receive the funds they need. For example, if you have bad credit and would need to resort to a personal loan no credit check, then the cosigner can effectively “lend” you their credit score on the application. As their credit score is likely better than yours, it will take precedence over yours and help you qualify.

In this blog, we are talking about personal loans with cosigner, in the form of online installment loans.

These loans can be tricky to come by, here’s where you can find them.

Where Can You Find Cosign Loans?

Installment Loans With CosignerThere are a couple of main places where you can find personal cosign loans. These are:

  • Banks
  • Credit Unions; and
  • Online

So, what else do you need to know?

Banks and Credit Unions

Increasingly, banks and credit unions aren’t offering as many personal cosign loans with installment plans.

Even though having a cosigner reduces the risk involved to the lender, many banks, and credit unions protect their interests by not offering personal cosign loans to people who have a bad credit history, period.

This decreases the need for cosigning loans, although some large banks and credit unions still carry some limited products for borrowers with fair or poor credit.


When it comes to finding a favorable loan. Partnering with an online financial service like Bonsai Finance offers a great solution for access to online installment personal loans with cosigner.

Here are some lenders that offer personal cosign loans:

  • Mariner Finance: Loans starting at $1,000
  • Lending Club: Loans starting at $1,000
  • OneMain Financial: Loans starting at $1,500
  • Wells Fargo: Loans starting at $3,000
  • Backed: Loans starting at $3,000
  • LightStream: Loans starting at $5,000
  • FreedomPlus: Loans starting at $10,000

The amount of money you can get and the terms range by the lender but can be valued up to $100,000 for qualifying applicants.

APR also varies and typically ranges from 2.90% to 36.00% depending on the loan, lender and borrower/cosigner credit history.

When you partner with Bonsai Finance, we will find you a loan that offers a favorable solution to your current financial situation.

Is a Loan with Cosigner the Best Choice?

If you’re considering a cosign loan, how do you know if it’s the best option for you? After all, if you need money in a bind and are considering a no credit check loan, there are credit cards that can help you consolidate and refinance debt.

Another option is getting your credit score up and applying for a loan without a cosigner. What’s the best choice?

Credit Card vs Loan

If your goal is to refinance debt, in some cases a credit card may be a better choice.

If you qualify for a 0% interest card to consolidate debt, that would be favorable to any interest you acquire on a cosigned loan. But chances are if you need a cosigner you’ve exhausted those option.

See our best credit cards to learn what options are available based on your current credit rating.

Improving Your Credit

If the goal is to improve your credit, one way to do that is by taking out a cosigned loan.

It may seem counter-intuitive. But in reality, having a loan in good standing is much more impactful to your overall credit score than the short-term impact of the credit check it takes to get the loan.

Also, consolidating credit debt with an online installment loan offers an opportunity to reduce the balance of credit cards further improving your score.

Maybe you want to improve your credit so you can take out a personal loan on your own in the future, but taking out a cosign loan can also be a way to improve your score provided you can pay it back according to terms.

Online Installment Cosign Loans

If you’re seeking financial help and thinking about a cosign loan, you don’t have to do it alone.

Bonsai Finance helps you find a number of options and offers that are favorable based on your current credit situation.

Contact us today to learn more about personal online installment loans. We’ll do a soft credit check and find you a preferred lender with preferred rates.

Don’t wait, click here to submit your information and see options.