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Private loans are one of the largest debt categories in the US due to their low interest rates compared to credit cards. And there are many ways to use it.

You can use a personal loan for everything from emergency expenses, home repairs and renovations, weddings, funerals, vacations and more. (However, if your purpose is to use a private loan for education or small business expenses, you should double check the lender’s terms because many prohibit the use of private loans for these purposes.)

Another is that private lenders offer a wide range of loans – up to $ 500 and up to $ 100,000, so there is a lot of flexibility out there. But if you are on the verge of a big loan, talk about a big renovation or a big wedding. However, it is here that the applicant can avoid some of the pressure.

The co-applicant is the person who applies for the loan with you and is equally responsible for repaying the full amount of the loan. Co-applicants are also often referred to as co-borrowers, and can often be added to a personal loan application form.

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Although co-applicants should not be confused with co-signatories. A co-signer is someone who puts their name on your application to help you qualify for a loan, but they are not obligated to repay the loan unless you can continue to make payments.

The benefits of having a co-applicant

When applying for a personal loan, lenders often check your credit history, income ratio, and other credentials to determine your loan amount, interest rate, and loan term. Applying with a co-applicant with a higher credit score will help you approve low interest rates and other favorable loan terms.

And considering the income of two applicants, this will help you qualify for a larger loan. If the lender finds out that there are two sources of income that can be used to repay the loan, a risk-free loan may be considered.

In addition, sharing responsibility for personal debt can help you reduce your chances of losing money if you lose your source of income, and someone else is too busy to pay. Keep in mind, however, that if you miss out on payments, this could have a negative effect on the credit of both parties.

When you are thinking of getting a co-applicant

Since co-applicants are financially responsible to repay the loan, it makes sense that the co-applicant is the beneficiary of the loan. Maybe you and your spouse are finally ready to move on from what you have been doing for years. In this case, you may want to consider your spouse as your partner. Or you may need additional financial support to take the next step with your business; If you have a business partner, this person will also benefit from the money, and, therefore, may be willing to be your co-applicant (as long as the lender agrees to use the loan for this purpose).

Also, having a co-applicant in these situations can be helpful if you do not have enough credit history under your belt to approve a low interest rate. It can help you if you want to spend a lot of money but do not have a steady income.

In addition, some lenders, such as SoFi private loans, non-resident borrowers or DACA recipients, need to have a co-applicant.

Get a personal loan that allows you to have a co-applicant

Not all private lenders allow you to apply with a co-borrower or applicant. But here are some suggestions on how to look or get an appointment for antique items.

Sophie’s personal loans

Sophie’s personal loans

  • Annual Percentage Rate (APR)

    5.99% to 18.85% when registering for auto-payment

  • The purpose of the loan

    Debt consolidation, home improvement, relocation assistance or medical expenses

  • Loan rates

  • Terms

  • A loan is required

  • Startup fee

  • Early payment penalty

  • Late payment

Sophie’s personal loans are not only free, but you can borrow a lot of money. Applicants can borrow up to $ 5,000 and up to $ 100,000, making private loans a good option for those who need extra money to cover the high cost.

If you do not need to apply for additional information, you can get your loan on the same day or the next business day. And this lender allows you to apply with a co-applicant.

When you sign up for Sophie’s personal loan, you can join the membership forum to take advantage of professional benefits, financial advice and many more.

LightStream Private Loans

LightStream Private Loans

  • Annual Percentage Rate (APR)

    From 2.49% to 19.99% *

  • The purpose of the loan

    Debt consolidation, home improvement, car finance, medical expenses, weddings and more.

  • Loan rates

  • Terms

  • A loan is required

  • Startup fee

  • Early payment penalty

  • Late payment

This lender provides private loans for every purpose, except for higher education and small businesses. Interest rates depend on the type of loan you take out.

LightStream does not charge any initial, administrative or pre-payment fees, and payment terms last 24 to 144 months. You can add a co-borrower during the application process.

Credit Club Private Loans

Credit Club Private Loans

  • Annual Percentage Rate (APR)

  • The purpose of the loan

    Debt consolidation, capital expenditures, emergency expenses, mobility, wedding

  • Loan rates

  • Terms

  • A loan is required

  • Startup fee

    Loan rate 2 to 6%;

  • Early payment penalty

  • Late payment

    15-day grace period to pay without penalty

LendingClub does not charge advance penalties, which means you will not receive payments or penalties if you decide to repay your loan in full before the end of your term. People who want a smaller loan can benefit from a $ 1,000 LendingClub loan. The maximum loan amount you can take is $ 40,000. And like two other lenders, LendingClub allows you to add an applicant when you need financial support.

at last

Private loans can be a tool for immediate financial support for large expenses. And while it may seem difficult to repay all of them, it can alleviate some of the pressure if you apply for a loan with a co-applicant.

Of course, not all private loans allow joint applicants, so you need to double check before applying. And as always, seek professional advice from a financial planner if you are in doubt as to whether you can achieve your personal loan goals.

Your LightStream loan terms, including APR, may vary depending on the purpose of the loan, amount, duration and your credit profile. You need good credit to qualify for low prices. Rate quoted with AutoPay offer. AutoPay offer only before loan. Without AutoPay rates it is 0.50% higher. Depends on credit approval. Conditions and restrictions apply. Advertising prices and terms may change without notice. Example of payment A monthly payment for a $ 10,000 loan with a 3.99% APR over a three-year period provides 36 monthly payments of $ 295.20.

Edit Note: The opinions, analysis, comments or recommendations described in this article are limited to editorial staff and should not be reviewed, endorsed or verified by any third party.

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