Credit Score to Be a Co-Signer

Credit Score to Be a Co-Signer
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If you're seeking a loan but have a poor credit score, no credit history or an income that's too low to qualify independently, you may ask another party to serve as a co-signer. A co-signer assumes responsibility for the loan in the event you fail to pay loan installments. To qualify as a co-signer, a person must have a solid credit rating, as well as proof of income.

Who Needs a Co-Signer?

Young people, students and adults without a solid credit history or income stream often need the help of a co-signer to qualify for a loan. You may ask a trusted family member to serve in this capacity. It's advisable to discuss potential areas for friction before entering this type of agreement to ensure family harmony.

Co-signer Credit

Your co-signer should have a credit score of at least 700. In essence, a co-signer is qualifying for a loan just as if it were his own. Your co-signer may be asked to show proof of income via previous tax returns, paycheck stubs or even bank statements. When a person co-signs for you, he agrees to the same terms as you, the primary signer.


Lenders will consider both your credit rating and your co-signer's credit rating in setting interest rates and terms. The higher the scores, the better the terms.


While having a co-signer with a credit score lower than 700 doesn't necessarily mean a loan will be denied, it will mean a higher interest rate and possibly a bigger down payment.

Checking a Potential Co-Signer’s Credit

If you're considering using a co-signer for a loan, you'll want to know that individual's credit score before applying. While it's not possible to access someone's credit history without her permission, you can ask her to request a free credit report from the government. If a potential co-signer is uncomfortable sharing this part of her financial history with you directly, ask her to meet privately with a loan officer and get back to you with details about her eligibility as a co-signer.


The person who agrees to be your co-signer may be unable to qualify for other loans on his own and potentially risks his own financial health on your behalf.