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Best Personal Loans With A Co-signer For November 2024

Michelle Bates
Contributor

Updated: Nov 7, 2024, 7:49am

Courtney Reilly-Larke
editor

Edited By

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.

When you apply for a personal loan, your credit score matters. Loans with strict credit requirements typically have lower interest rates, while loans with more lenient requirements usually charge higher rates. But for those with unfavourable credit scores, getting approval for any loan at all might be hard—and, in some cases, not possible to do on your own.

If you need a loan but have difficulty getting approved because of your credit history, you may want to consider a lender that allows co-signers. Regardless of your credit score, a co-signer with a stronger credit score and financial record than your own can help you get approved.

This guide outlines the best personal loan options with lenders that offer co-signer capabilities. From loan amounts, interest rates and credit requirements to fast funding and eligibility, our rankings will give you an idea of the most well-rounded options for those needing support when applying for a loan.

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Best Personal Loans With a Co-Signer in Canada for November 2024

FEATURED PARTNER OFFER

BEST FOR NO CREDIT HISTORY & QUICK FUNDING

easyfinancial

easyfinancial
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Minimum Credit Score

No credit history necessary

APR Range

9.99% to 46.96%

Loan Amounts

$500 to $100,000

easyfinancial
Learn More

On easyfinancial's Website

Minimum Credit Score

No credit history necessary

APR Range

9.99% to 46.96%

Loan Amounts

$500 to $100,000

Why We Picked It

One of the biggest perks of easyfinancial personal loans is that you don’t need a credit history to qualify. While the unsecured loan APR is high, secured loan APRs max out at 25.99%. There are also no prepayment fees, so you’re free to pay off your balance in full at any time. You can also access your cash hours after approval and work towards rebuilding your credit each time you make an on-time payment.

Pros & Cons
  • No minimum credit score
  • Wide loan range from nine to 120 months
  • 2% rate discount on unsecured loans when you apply with a co-applicant (excluding Manitoba and Quebec)
  • High APR range for unsecured personal loans
  • 1.5 stars on TrustPilot, indicating some customer dissatisfaction
  • Customer service is limited to set operating hours
Additional Details

Eligibility: To be approved, you need to provide two recent pay stubs, recent banking information, a recent bill with your current address on it and a valid piece of government photo ID. Secured personal loans aren’t available in British Columbia, Northwest Territories, Nunavut and Yukon.

Loan Uses: Use your personal loan to consolidate your debt, pay bills, fund unforeseen emergency expenses, cover car repairs, home renovations, vacations and major life events like weddings.

Turnaround Time: Once you apply over the phone, online or in person, you’ll receive your cash the same day. You can also return your loan within two weeks if you change your mind.

FEATURED PARTNER OFFER

BEST FOR VERSATILE LOAN AMOUNTS AND FLEXIBLE TERMS

Fusion Credit Union

Fusion Credit Union
4.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Minimum Credit Score

Undisclosed

APR Range

5% to 10%

Loan Amounts

$300 to $10,000,000

Fusion Credit Union

Minimum Credit Score

Undisclosed

APR Range

5% to 10%

Loan Amounts

$300 to $10,000,000

Why We Picked It

Fusion Credit has one of the lowest minimum loan amounts and highest maximum loan amounts in Canada, making it a great lender for a wide variety of financial needs. Depending on the loan amount, borrowers can take up to 25 years to repay their loan at lower APRs than most lenders and banks. Plus, Fusion Credit has direct customer support over the phone with a representative Monday through Friday and a mobile app for you to make principal loan payments.

Pros & Cons
  • No prepayment fee
  • Autopay available to repay your loan
  • Apply online
  • No 24/7 customer support
  • Unpredictable approval timeline
  • Risk of high APR with high loan balances and late fees for missed payments
Additional Details

Eligibility: Fusion Credit Union doesn’t have a declared minimum credit score. If you’re concerned about your credit score, consider a co-signer with a stronger financial history to improve your application or speak with a representative about specific lending criteria.

Loan Uses: Use your loan for personal expenses like home renovations, debt consolidation, travel, or professional ventures like growing a business.

Turnaround Time: After applying, approval may take up to a week.

FEATURED PARTNER OFFER

BEST FOR POOR CREDIT & QUICK, MODERATE LOANS

LendingMate

4.2
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Minimum Credit Score

No credit checks

APR Range

43% per annum

Loan Amounts

$2,000 to $10,000

Minimum Credit Score

No credit checks

APR Range

43% per annum

Loan Amounts

$2,000 to $10,000

Why We Picked It

Lending Mate has zero fees and mainly approves loans based on the presence of a reliable guarantor. The maximum loan amount is pretty low, so the 60-month loan term cap is quite reasonable to fit into your repayment plan. With a quick turnaround time and very few lending criteria, this lender is great for those looking to take out a moderate loan quickly.

Pros & Cons
  • No late payment fees
  • No prepayment fees
  • Employment isn’t mandatory
  • Only available in Ontario and British Columbia
  • High APR
  • Lower maximum loan amount
Additional Details

Eligibility: To get a loan, your guarantor has to be financially secure and independent from you, between 19 and 75 years of age, a Canadian resident, and a first-time guarantor and borrower with LendingMate.

Loan Uses: A guarantor loan can be used for emergencies, bill payments, debt consolidation, and other necessary living expenses.

Turnaround Time: You’ll typically get your loan paid out within 24 hours or less.

FEATURED PARTNER OFFER

BEST FOR QUICK FUNDING & FLEXIBILITY

Scotiabank

Scotiabank
3.4
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Minimum Credit Score

Undisclosed

APR Range

Undisclosed

Loan Amounts

$5,000 to $75,000

Scotiabank

Minimum Credit Score

Undisclosed

APR Range

Undisclosed

Loan Amounts

$5,000 to $75,000

Why We Picked It

Scotiabank offers high personal loan amounts for those who need to cover large expenses. Though you need a good credit score to qualify for a Scotiabank personal loan, they allow co-signers to strengthen your application. With a good credit history, you can also benefit from lower interest rates.

Learn more: Read our Scotiabank Personal Loan Review

Pros & Cons
  • Make extra payments when you can without prepayment fees
  • One late payment per year is forgiven without a late fee
  • Choose between a fixed and variable interest rate
  • Must have a strong credit history
  • High starting loan amount, excluding those who require a loan of under $5,000
  • Must apply in person at a Scotiabank branch
Additional Details

Eligibility: Though there is no minimum credit score disclosed, only those with a good credit score will be approved, which is roughly 670 and above according to Equifax . You’ll also need proof of employment and a valid government photo ID. Self-employed people must show their most recent Notice of Assessment from the CRA.

Loan Uses: Use your personal loan for large purchases, debt consolidation, home renovations, travel expenses and more.

Turnaround Time: Depending on your application, you may be approved within one day or up to seven to 10 business days.

FEATURED PARTNER OFFER

BEST FOR ONE-TIME PROJECTS & RENOVATIONS

Laurentian Bank of Canada

Laurentian Bank of Canada
3.3
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Minimum Credit Score

Not disclosed

APR Range

9.45% base rate

Loan Amounts

Minimum $3,500

Laurentian Bank of Canada

Minimum Credit Score

Not disclosed

APR Range

9.45% base rate

Loan Amounts

Minimum $3,500

Why We Picked It

Laurentian Bank offers a lot of flexibility with interest rates and loan terms, which range from one to 10 years. Fixed payments are made monthly and customers can benefit from the accessibility of the bank’s mobile app and human customer service available on business days.

Pros & Cons
  • Get a 1% rebate on your interest rate for renovation loans
  • Choose between a fixed or variable interest rate
  • Option to pay back the loan early without facing a penalty
  • No 24/7 customer support
  • Late payment fees
  • Moderately high starting loan amount
Additional Details

Eligibility: There is no credit score outlined by Laurentian Bank.

Loan Uses: Take out a Laurentian Bank loan for specific projects that need funding like home renovations, debt consolidation and other standard personal loan uses.

Turnaround Time: There is no guarantee of approval time, but it’s generally within one week.

Summary: Best Personal Loans With a Co-Signer In Canada For November 2024


COMPANY FORBES ADVISOR RATING Minimum Credit Score APR Range Loan Amounts LEARN MORE
easyfinancial No credit history necessary 9.99% to 46.96% $500 to $100,000 Learn More
Fusion Credit Union Undisclosed 5% to 10% $300 to $10,000,000 View More
LendingMate
No credit check 43% per annum $2,000 to $10,000 View More
Scotiabank Undisclosed Undisclosed $5,000 to $75,000 View More
Laurentian Bank of Canada Undisclosed 9.45% $3,500 minimum View More

Methodology

We reviewed 76 popular lenders based on 17 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the 10 best lenders based on the weighting assigned to each category:

  • Loan details: 20%
  • Loan cost: 35%
  • Eligibility and accessibility: 20%
  • Customer experience: 15%
  • Application process: 10%

Within each major category, we also considered several characteristics that would benefit those with bad credit in particular, including awarding an extra five points for lenders offering a low maximum APR, a low minimum credit score, a high maximum loan term and cosigner/borrower capability. Finally, we evaluated each provider’s customer support tools, borrower perks, and features that simplify the borrowing process, such as prequalification options and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

Tips for Comparing Personal Loans With a Co-signer

Before making any financial decision, it’s best to identify your needs and consider your options. Once you know how you’d like to repay your loan and what you can qualify for, you can start shopping. You may want to:

  • Compare any added fees: Each loan has different rules and associated fees, so you need to consider how they align with your plans. For instance, if you’d like to pay your loan off as soon as possible, consider a lender that doesn’t charge prepayment fees. On the other hand, if you think there’s a chance you may make a late payment, you may want to opt for a lender that doesn’t charge late fees. These fees, including any potential admin fees, accumulate with your interest, so you want to be aware of them and make plans to avoid them.
  • Compare co-signer eligibility: Each lender will have its qualifying criteria for your co-signer or guarantor. Check to see if your co-signer meets the necessary requirements of each lender you’re considering. This will involve cross-referencing their credit score, income and other personal details.
  • Compare customer service accessibility: If this is your first loan and you need quick access to customer support, you may opt for a 24/7 customer support lender or at the very least, one with a reliable human on the other end of the phone. Compare lender ratings online and any other financial resources the lender may offer you.
  • Compare prequalifications: If you can prequalify for your loan with a few different lenders to see which offers the best loan amount at the best interest rate, this can help finalize your search.

What Is a Co-Signer?

A co-signer is a relative or friend who adds their personal information and financial history to a loan application and agrees to pay any remaining debt if the primary borrower cannot.

Co-signer vs. Co-borrower

A co-signer is a person that guarantees the loan will be paid off if the primary borrower defaults on the loan. A co-borrower is one of two (or more) equal borrowers of the same loan. A co-signer can’t access the money issued for the loan while the co-borrower can.

When to Use a Co-signer vs. Co-borrower

You can use a co-signer for a loan if you simply need someone with a stronger financial background than you to help you qualify. However, if you and another person have a financial responsibility that you share and you’ll both benefit from the loan, then a co-borrower is appropriate. For example, a co-signer might be best if you’re one person taking out a loan to consolidate your debt. A co-borrower might be best if you and another person are paying for an expensive life event or starting a business together.

Risks of Using a Co-signer

Having a co-signer doesn’t come without risks, including:

  • Tarnishing your relationship with the co-signer if you can’t pay the loan
  • Worsening the co-signer’s credit score if you miss a payment
  • Getting approved for a loan that you realistically can’t pay off
  • You may limit the co-signer’s ability to take out loans of their own

How to Apply for a Personal Loan With a Co-signer

Applying for a loan will look a little different with each lender, but the general step by step process involves:

1. Determining your loan use and loan amount

2. Reviewing your income and credit score

3. Seeking out a co-signer if needed and getting their financial information

4. Comparing personal loan lenders that accommodate you and your co-signer’s financial credentials

5. Pre-qualifying for a loan at a few different lenders and choose one that suits you best

6. Applying online or at a branch in person

Alternatives to Personal Loans With Co-signer

Alternatives to getting a co-signer include:

  • Borrowing money directly from your would-be co-signer
  • Having your would-be c0-signer take out a loan for you to use that they can easily make the minimum payments on
  • Having your would-be co-signer offer collateral on a secured loan

Each of these alternatives still presents risks to the other party if you can’t repay them. However, none of these scenarios will negatively impact their credit score.

Frequently Asked Questions (FAQs)

Is it easy to get a personal loan with a co-signer?

It can be easier to get a personal loan with a co-signer, rather than on your own. Each lender weighs the co-signer’s financial history differently. In most cases, a strong co-signer will significantly improve your chances of getting a loan.

Can you get a loan with bad credit with a co-signer?

Yes. If your co-signer has great credit, you may still be able to get a loan.

Related: How To Get A Loan With Bad Credit

What credit score does a co-signer need for a personal loan?

A co-signer typically needs a credit score of 670 or higher.

What if I can’t repay my loan and I have a co-signer?

If you can’t repay your loan, your co-signer will have to repay it for you. Any missed payments will impact the credit scores of both parties.

Find The Best Personal Loan
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Michelle Bates Contributor

Michelle has seven years of writing experience and has been writing and editing personal finance content since 2021, specializing in credit cards, home and auto insurance, and mortgages. She is the former associate editor at WealthRocket and spent close to two years as an editor and writer for rate comparison website RATESDOTCA, where she wrote data-driven reports and edited freelancers’ articles. Her work has been covered by notable Canadian news sources like the Financial Post, The Globe and Mail, CTV News, and Narcity.

Courtney Reilly-Larke Editor

Courtney Reilly-Larke is the deputy editor of Forbes Advisor Canada. Previously, she was the associate editor of personal finance at MoneySense. She was also managing editor of Best Health Magazine and has contributed to publications such as Cottage Life and Blog TO. She currently lives in Toronto.