Co-Signed Loans - Get Approved with Better Terms

Boost your approval odds and secure lower interest rates with a trusted co-signer. Perfect for building credit or getting better loan terms.

95% Approval with Co-Signer
Save 5-10% on Rates
Build Credit History

Higher Approval

95% approval rate with qualified co-signer

Lower Rates

Save 5-10% on interest rates

Build Credit

Establish credit history faster

Larger Amounts

Qualify for higher loan amounts

What are Co-Signed Loans?

A co-signed loan involves a secondary borrower (co-signer) who agrees to be equally responsible for repaying the loan if the primary borrower cannot make payments. The co-signer's good credit and income strengthen your application, dramatically increasing approval odds and often securing better interest rates and higher loan amounts.

Co-signers are commonly parents helping their children, spouses supporting each other, or trusted friends assisting someone building or rebuilding credit. For the primary borrower, it's an excellent way to access financing that might otherwise be unavailable and to build a positive credit history through on-time payments.

Benefits of Co-Signed Loans

For the Primary Borrower

  • • Get approved when you might be declined alone
  • • Qualify for larger loan amounts
  • • Access lower interest rates (save thousands)
  • • Build or rebuild credit history
  • • Achieve financial goals sooner

For the Co-Signer

  • • Help loved ones achieve goals
  • • Build stronger credit (with on-time payments)
  • • Can be removed from loan after 12-24 months
  • • No upfront costs or fees
  • • Only responsible if borrower defaults

Who Needs a Co-Signer?

  • Young Adults & Students: Limited credit history, building credit for the first time
  • Recent Immigrants: New to Canada without established Canadian credit history
  • Credit Rebuilders: Recovering from bankruptcy, consumer proposal, or past credit issues
  • Low Income Earners: Need help meeting lender income requirements
  • Self-Employed: Difficulty proving income with traditional documentation

Important: Co-Signer Responsibilities

Co-signers should understand they are equally responsible for the loan. If the primary borrower misses payments, it affects both credit scores. Only co-sign if you trust the borrower and can afford the payments if necessary.

Good news: With on-time payments, both borrower and co-signer build stronger credit!

Co-Signed Loan FAQs

How much can I save with a co-signer?

A co-signer can reduce your interest rate by 5-10%, saving you thousands over the loan term. For example, on a $20,000 loan over 5 years, lowering your rate from 24.99% to 14.99% saves you over $5,600 in interest charges.

Can a co-signer be removed from the loan later?

Yes! Many lenders allow co-signer release after 12-24 months of on-time payments. Once you've built sufficient credit history and demonstrated responsible payment behavior, you can refinance the loan in your name only, releasing the co-signer from their obligation.

What credit score does a co-signer need?

Ideally, co-signers should have a credit score of 680 or higher to maximize benefits. However, any co-signer with better credit than the primary borrower can help. The stronger the co-signer's credit and income, the better the loan terms you'll receive.

Rate Comparison

Without Co-Signer:

24.99% APR

With Co-Signer:

14.99% APR

You Save on $20K loan:

$5,600

Loan Details

Loan Range:

$1,000 - $50,000

Interest Rates:

From 9.99% APR

Terms:

12 to 84 months

Approval Rate:

95% with co-signer

Good Co-Signers:
  • Parents or guardians
  • Spouse or partner
  • Adult siblings
  • Close family friends
  • Any trusted person with good credit

Apply for Co-Signed Loan

Get better rates and higher approval with a qualified co-signer.

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