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Should You Get a Co-Signer on a Loan?

Senior father with adult son

Revised By Jennifer Tucker

May 9,2025

2 Min. Read

What is a Co-Signer?

A co-signer is someone who agrees to take joint responsibility for a loan with the primary borrower. If the primary borrower misses payments or defaults on the loan, the co-signer is legally responsible for paying back the debt. Co-signers are usually used when a borrower has limited or poor credit history and needs help qualifying for a loan.

 

Should You Get a Co-Signer on a Loan?

When it comes to getting a loan or even signing a lease, you may have heard the term co-signer.

 

A co-signer is someone who shares legal responsibility for repaying a loan or lease if the primary borrower cannot.

 

If you qualify for a home loan or auto loan or are in good standing to lease on your own, you probably don’t need a co-signer. But if you have minimal loan or renting experience or lack enough credit history, you may need to consider enlisting a co-signer.

 

While co-signers can help you qualify for financing or get better terms on a loan, it’s a decision that comes with important considerations. Before asking someone to co-sign for you—or agreeing to co-sign for someone else—it’s important to understand when it makes sense, what’s at stake, and how to move forward responsibly.

 

When Might You Need A Co-Signer?

Limited Credit History

If you have little or no credit history, a co-signer with established credit can help you qualify for a loan or lease.

Low Credit Score

If your credit score is lower than lenders require, a co-signer could improve your chances of approval and help you secure better interest rates or loan terms.

High Debt-to-Income Ratio

If your current debt load is high compared to your income, a co-signer’s financial strength could help you meet lender requirements.

 

What Are the Risks of Using a Co-Signer?

Shared Financial Responsibility: If you miss a payment, your co-signer is legally obligated to pay. And if your co-signer makes a late payment, both of your credit scores could be negatively affected.

Potential Strain on Relationships: Financial arrangements can create stress between friends or family members, especially if repayment issues arise.

Impact on Co-Signer’s Finances: The loan appears on the co-signer’s credit report and could affect their ability to borrow for their own needs.

 

Choosing the Right Co-Signer

If you determine you need a co-signer, it’s important to choose someone who:

  • Has strong credit and financial stability
  • Fully understands the risks involved
  • Is willing to provide financial documentation if needed

 

It’s important to have open, honest conversations about responsibilities and expectations—and establish a clear plan for repayment—to help protect your relationship and your credit.

 

Remember: getting a co-signer can open doors to new opportunities, but it’s a decision that deserves careful thought. If you’re unsure whether a co-signer is the right move, consider talking with an experienced lender about your options and the best path forward.

 

Not sure if a co-signer is right for you? Learn more about How to Get a Loan with Bad Credit and Steps to Take if You’re Turned Down for a Mortgage.

  • Chandler Sullivan

    Chandler Sullivan

    Chandler Sullivan is a copywriter specializing in a wide range of topics including personal finance, psychology, childcare, education, and scientific research. She has skills in writing and research with experience in digital marketing, sales, and social media. She graduated from UW-La Crosse with a B.S. degree in Psychology and a minor in Professional Writing in La Crosse, WI. She has worked for companies based in the Milwaukee, WI area and the Chicago, IL area doing SEO and copywriting.

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