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

Why the co-signer credit score matters: When you apply with a co-signer, many lenders use the primary borrower's credit score for qualification but also review the co-signer's credit to assess the total risk. Some lenders use the lower of the two scores; others use the primary borrower's score but require the co-signer to meet a minimum threshold. Ask the specific lender which score they prioritize.

Co-signer score tiers and their effect:

750+: Maximum benefit. A co-signer with 750+ often converts a denial (say, 580 primary score) into an approval at prime rates. The co-signer's excellent credit heavily mitigates the primary borrower's risk.

700-749: Strong benefit. This tier still significantly improves approval odds and can lower the rate by 5-10 percentage points from what the primary borrower would get alone.

660-699: Moderate benefit. Better than no co-signer for primary borrowers near the denial threshold, but may not be enough to unlock the best rates.

Below 660: Limited benefit. A co-signer with poor credit themselves adds little protection to the lender and may not significantly improve terms.

Co-signer's DTI also matters: Even with an excellent credit score, if your co-signer has high existing debt payments (mortgages, car loans, other personal loans), their DTI may concern the lender. The co-signer's ability to theoretically make payments if needed is what the lender is evaluating.

Credit impact on co-signer: The loan appears on the co-signer's credit report and counts toward their DTI. Before asking someone to co-sign, ensure they understand that this loan will be visible to any future lender they approach.