Let’s look at how a cosigner helps to get a loan application approved first and then how to get a personal loan without a cosigner.
When someone comes on as a cosigner to your loan, they’re not only vouching that you’ll pay back the money but also putting their money on the line to pay it back.
If your cosigner has good credit then the lender is better assured that they’ll get the money back either from you or from the cosigner.
Getting a personal loan with no credit and no time to increase your score means you probably aren’t getting any love from the bank. They have strict rules for lending to anyone with a subprime credit score around 680 FICO.
One method is to get included as an authorized user on someone’s credit card. This is similar to being a cosigner but people seem to have less a problem with this than cosigning a loan.
Getting a student loan without a cosigner is usually a little easier for two reasons. First, there are government programs that back student loans so lenders know they’ll get their money either from you or from the government.
Student loans are also one of the few types of debt that don’t get wiped out in a bankruptcy. That means lenders know you’ll have to repay the debt eventually, even if you file bankruptcy.