How Do I Get a Loan without a Cosigner? (with picture)

Lainie Petersen
Lainie Petersen
A positive credit history plays a role in getting a loan without a cosigner.
A positive credit history plays a role in getting a loan without a cosigner.

Getting a loan without a cosigner is typically a matter of qualifying for a loan on the merits of your own credit worthiness, income, and assets rather than that of another person. The principle behind requiring a cosigner for a loan is that the primary borrower does not have sufficient credit or financial resources to qualify to borrow money or to borrow money at an optimal interest rate. As such, a cosigner who is more financially stable and who perhaps has better credit guarantees the loan by promising to repay it if the borrower defaults. Other options for getting a loan without a cosigner are to borrow less money, to obtain a loan for which you do not need to qualify on the basis of credit or income, or to choose a loan with a less favorable interest rate. Finally, if you have assets of value, you may be able to use these as collateral in obtaining a loan.

Most banks and other lending institutions loan money after completing what is known as an underwriting process. This involves an investigation into a borrower's finances. If you want to borrow money, most lenders will insist on investigating your current and past financial dealings. For example, the lender will probably want to look at your credit history to see if you have repaid debts in the past. The lender will also investigate and verify your current income so that it knows that you will be able to make regular payments on your debt. If you have solid credit and an income that is in proportion to the amount of money you wish to borrow, you may well be able to get a loan without a cosigner.

In some cases, it is possible to find a no cosigner loan through loan programs that have less stringent underwriting requirements. For example, some government student loans are not issued on the basis of credit history or income and require no cosigner. Some credit unions and banks may also issue small loans to customers who have accounts in good standing. Talk to a lender and ask for an assessment of your current credit and financial situation. You may find out that it is possible for you to get a loan without a cosigner that offers reasonable terms, even though it may not be for the exact amount that you want or at the very best interest rate. By taking out and repaying the loan as agreed, you may also be able to improve your credit and thus your chances of getting a loan without a cosigner in the future.

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    • A positive credit history plays a role in getting a loan without a cosigner.
      A positive credit history plays a role in getting a loan without a cosigner.