New kind of innovative Start-ups find cosigners for loans, apartment rentals and leases.

It is quite difficult for people to get approval for loans with low credit scores. However, a rising number of online start-ups are providing a solution to this problem by helping guarantee loans and apartment/house leases for those who find themselves incapable of doing it on their own.


Getting assistance from a cosigner could be necessary for you to be approved for the loans you are looking for. When applying for loans, you may find yourself in need of a cosigner for various reasons like if you are incapable of reaching the minimum income requirements for a loan, if you have no established credit or you have a low credit score. Things might even be tougher for you if you are self-employed or because you just switched jobs recently and your income varies.

Applying for loans with a cosigner may provide you with an opportunity to acquire private student loans, credit cards and mortgages that would have been difficult for you to achieve on your own.

It is a tough world out there and most people are unwilling to take a risk to help out their family or friends by cosigning their loans. Even if that is a completely rational argument it’s not as though there are no good stories of cosigning a loan, because there are plenty.
“I have cosigned on two car loans in the past through Procosign. I have also cosigned on a loan through credit card, using a cash advance, to two individuals from Boston: the first one for $12,000 and the second one for $5,300.” says Debra Jung, a San Francisco I.T. professional.

Jung says the car loan and the first credit card loan have been paid completely. The other one has $1,200 to go.

For Jung, everything came out roses. She claims it has even helped her with her own credit rating. She has since been approved for a personal loan and an auto loan while simultaneously having cosigned loans. “It has all turned out quite brilliantly. I am grateful to have had a positive experience in this convenient way of availing better credit options. I hope others will benefit from Procosign as well.” Jung says.

Macy Wiggins said, “My credit rating has taken a beating lately and now I need help with leasing a new apartment. I was told by my landlord that I needed to find a cosigner.”

Wiggins was hesitant to approach her family and friends for support, so she checked online and found a company that would provide her with a cosigner at a fee.

Michael Giurenko of CreditRate described the intricate workings of this up and coming industry.

“If you find yourself unable to pay and default on the loan, the landlord will be paid the rest of your lease by them.” he said.

New companies like Procosign and Wells Cosigner Network would guarantee your loan/lease for a contractually specified length of time, even if you find yourself suffering from low credit scores.

There is no denying that in this unstable job market and the current economic situation our country is going through has contributed to a higher demand for personal loans, student loans, home loans, business loans etc. to name a few.

The rates of interest charged will differ according to the service you use and your credit scores but clients can expect an interest rate that is a percentage of their monthly or annual lease/loan payment which is typically in the area of 6% and 10%, which will have be paid to the co-signing company.

Some companies may even ask you to pay for other fees like sign-up fee, a processing fee, a background-check fee etc. The total costs of such payments may rack up to $100-$200.
It is recommended that you do a thorough research of the cosigning company before giving them your personal information.

Wiggins stated that her experience with Procosign was a positive one.

“I now have peace of mind that I have my own home. I am now well on my way to establishing my new life.” she said.