Co-Signer Credit Requirements

Eligibility Requirements

Any loan co-signer must be at least 18 years of age on the date he signs the loan application. He must be a United States citizen or a permanent resident. Credit unions may have membership requirements. A co-signer must meet membership requirements if he is not a member when he submits a co-signer application. He must be willing to co-sign the debt and understand that he may be legally responsible for repaying this debt if the primary borrower defaults.

Credit Requirements

Credit requirements may vary slightly among lenders and also depend on the type of loan. A co-signer must have a debt-to-income ratio no higher than 40 or 45 percent with the new debt he co-signs for. He must have a steady and sufficient income. Lenders may not accept unemployment or worker's compensation as income, as it is temporary. A lender may require a co-signer to work for at least two years at the same employer or in the same industry. If a co-signer has recently changed jobs in the same industry for a higher salary, it will not count against him. Federal student loans and mortgage loans may have slightly different guidelines.

Credit Score Requirements

Lenders generally do not disclose credit score requirements, as they review each application individually and may offer loan terms based on the applicant's credit situation. Minimum credit score may also depend on the type of loan requested. Generally, a co-signer's score must be at least 600. Any credit score below that indicates a recent derogatory credit history, such as delinquent accounts, collections or a bankruptcy. A good credit score is between 670 and 719, which means that the applicant's credit accounts are in good standing. Credit score requirements may vary depending on the loan.

Derogatory Public Record

A co-signer must have no recent derogatory public records, such as bankruptcies, collections, garnishments or tax liens. Any negative public record information will lower a credit score significantly and may remain on a credit report for up to 10 years. Paid collection accounts may stay in a consumer's credit file for up to seven years but are less damaging than the open ones. A lender may pay less attention to a bankruptcy if he sees that the applicant has re-established his credit history. A creditor will be reluctant to accept a co-signer who has any unpaid obligations, such as a judgment or tax lien.