Getting a loan without a cosigner is possible even if you have limited credit history or poor credit. While most lenders prefer borrowers with strong credit and a cosigner, there are reliable strategies and loan types that don’t require one.
This guide explains exactly how to qualify, where to apply, and how to improve your chances of getting approved without relying on someone else.
1. Understand Why Lenders Ask for a Cosigner
Lenders usually request a cosigner when:
- Your credit score is low
- Your income is insufficient
- You have no credit history
A cosigner helps reduce the lender’s risk. But if you can show you’re financially responsible, you can still qualify without one.
2. Check Your Credit Score First
Before applying, check your credit score for free on sites like:
Look for:
- Errors in your report (dispute them immediately)
- High credit utilization (pay down credit cards)
- Late payments (try to bring accounts current)
If your score is above 600, you may already qualify for some no-cosigner loans.
3. Apply for Loans Meant for People With No Cosigner
Some lenders specialize in no-cosigner loans. Below are the most reliable options:
A. Credit Builder Loans
Perfect for people building or rebuilding credit. Offered by credit unions and community banks.
- Amount: Usually $300 – $1,000
- Approval: Easy, no cosigner
- Best for: Beginners, bad credit
Learn more at Self Financial
B. Secured Personal Loans
These require collateral (e.g., savings, car title), not a cosigner.
- Lower interest rates than unsecured loans
- You risk losing the collateral if you don’t repay
- Great for people with poor or no credit
Check out OneMain Financial
C. Online Lenders (No Cosigner Required)
Some online lenders use alternative data (like income, education, and employment) instead of credit scores.
Best no-cosigner lenders in 2025:
| Lender | Min. Credit Score | Loan Amount | APR Range |
|---|---|---|---|
| Upstart | 300+ | $1,000–$50,000 | 6.40%–35.99% |
| Avant | 580+ | $2,000–$35,000 | 9.95%–35.99% |
| Upgrade | 580+ | $1,000–$50,000 | 8.49%–35.99% |
Get more information:
4. Borrow From a Credit Union
Credit unions often offer more flexible terms than big banks.
- You can join even with bad credit
- Many offer starter loans or small personal loans
- Rates are usually lower than payday loans
Search for a credit union near you at MyCreditUnion.gov
5. Use a Steady Income to Your Advantage
Lenders look for proof that you can repay the loan. If your credit is weak but you have a stable job:
- Submit pay stubs or bank statements
- Consider adding proof of regular income (like side gigs, rental income)
- Ask the lender if they’ll accept manual underwriting
The more stable your income, the less likely you’ll need a cosigner.
6. Improve Your Debt-to-Income (DTI) Ratio
DTI = Total Monthly Debt Payments ÷ Gross Monthly Income
Most lenders prefer DTI below 36%
Tips to lower your DTI:
- Pay off credit card debt
- Avoid new credit lines before applying
- Increase your income (freelancing, part-time job)
Use a free DTI calculator at NerdWallet
7. Consider Employer or School-Based Loans
Some companies or colleges offer:
- Employee hardship loans
- Student emergency loans
- Income-share agreements (ISAs)
These often don’t require a cosigner and come with low or no interest.
Check with your HR department or campus financial aid office.
8. Consider Peer-to-Peer Lending
Platforms like LendingClub and Prosper allow individuals to fund your loan directly.
- May accept lower credit scores
- Often no cosigner required
- Must provide detailed income and job info
Visit LendingClub or Prosper
9. Avoid Payday Loans or Title Loans
These are easy to get without a cosigner, but come with extremely high interest rates (up to 400%).
They can trap you in a cycle of debt.
Always look for reputable lenders with APR under 36%, the limit recommended by the Consumer Financial Protection Bureau (CFPB).
10. Build Your Credit If You’re Not in a Hurry
If you’re not in urgent need of cash, build your credit first:
- Use a secured credit card
- Make on-time payments
- Keep balances low
After 3–6 months, your score may improve enough to qualify for better no-cosigner loans.
In conclusion, getting a loan without a cosigner is entirely possible in 2025. Start by knowing your credit score, choosing the right lender, and showing proof of stable income. Avoid predatory lenders and build your credit over time if needed. Whether you’re using a credit union, online lender, or secured loan, you have multiple paths to secure funding independently.