What is a Cosigner?

If a person seeking to obtain a loan has no credit history, poor credit history, or an income that falls below a lender’s approval requirements, the potential borrower may still be able to qualify for a loan if he or she is able to obtain a cosigner. A cosigner guarantees the debt of the borrower. If the primary borrower cannot or does not repay the loan, the obligation of repayment will fall upon the cosigner. Repayment history for a loan will be reported on both the primary borrower’s and the cosigner’s credit report.

Difficulties with Finding a Cosigner

While obtaining a cosigner can allow a borrower to qualify for more loan types or for higher loan amounts, finding a cosigner is not always easy. A borrower may feel uncomfortable asking someone to cosign on a loan for them due to embarrassment. Many times, borrowers do not want others, especially family members or friends, to know that they are having difficulties making ends meet and need to take on a loan.

Even if a person is comfortable with asking someone to become their cosigner, friends and family may be hesitant to put their own financial situation at risk in the event that the primary borrower cannot repay the loan. Financial obligations can strain personal relationships, and some may not want to take on that risk.

Do I need a Cosigner for a Quick Cash Loan?

Lenders for quick cash loans, such as payday loans, typically will not require a cosigner and may not allow for more than the individual to be named on the loan. Payday loans and short-term installment loans are usually approved or rejected on the basis of the applicant having a verifiable source of regular income.

Personal Installment Loans without a Cosigner

Installment loans may be an alternative option for borrowers having difficulty getting approval for traditional loans. Short-term installment loans are typically easier to obtain because they tend to have less restrictive approval requirements. An installment loan can provide a borrower with needed funds without having to find a cosigner. Payment terms for installment loans are more flexible than payday loans because they are repaid over a longer period of time. Before applying for any type of loan, a borrower should ensure they fully understand the terms of the loan and should not take on any loan they will not be able to repay on time.


The content on this site is for informational purposes only and is not professional financial advice. Blue Trust Loans does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.

Hummingbird Funds, LLC is a sovereign enterprise, an economic development arm and instrumentality of, and wholly-owned and controlled by, the Lac Courte Oreilles Band of Lake Superior Chippewa Indians (the “Tribe”), a federally-recognized sovereign American Indian Tribe. This means that the Hummingbird Funds’ installment loan products are provided by a sovereign government and the proceeds of our business fund governmental services for Tribe citizens. This also means that Hummingbird Funds is not subject to suit or service of process. Rather, Hummingbird Funds is regulated by the Tribe. If you do business with Hummingbird Funds, your potential forums for dispute resolution will be limited to those available under Tribal law and your loan agreement. As more specifically set forth in Hummingbird Funds’ contracts, these forums include informal, but affordable and efficient Tribal dispute resolution, or individual arbitration before a neutral arbitrator. Otherwise, Hummingbird Funds is not subject to suit or service of process. Neither Hummingbird Funds nor the Tribe has waived its sovereign immunity in connection with any claims relative to use of this mobile site. If you are not comfortable doing business with a sovereign instrumentality that cannot be sued in court, you should discontinue use of this website.