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Step 1
Consider the closest people to you in your life, and think about who would be willing and able to take on the risk of cosigning a personal loan for you. For most people, this will be a spouse, sibling or parent. In other situations, particularly when the personal loan will be used to cover a business expense, it may be proper to request that an employer or business partner cosign the loan.
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Step 2
Prepare to explain why you need the personal loan. Be financially transparent. Don't hide accounts, job difficulties or any other issues before asking her to cosign the loan. If you expect to default on the loan before you even take it out, you may find that your relationship with your cosigner will be destroyed, and that you could even be the target of a lawsuit for financial negligence.
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Step 3
Develop a payment plan for the loan. If you have significant credit score issues, order a copy of your credit report and show it to the person who you would like to cosign your loan. Explain how negative items on your credit report came to pass and what you have done or plan to do to correct them. If you have entered default on loans or credit cards in the past, this will be particularly important to explain.
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Step 4
Think about and explain significant personal risks that may prevent you from paying back the loan, and determine how you would mitigate those disasters. For example, come up with a plan for what to do if you suddenly become unemployed or seriously injured. Think about what you will do if someone in your family becomes disabled and how it will affect your ability to pay back a loan.
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Step 5
Think about whether the person you have chosen to cosign your loan will really improve your chances of approval. If his credit history is no better than yours, it may not strengthen your loan application. You may be surprised at his credit score. How much money someone seems to have is not necessarily a sign that he has good credit.
