What type of loan would typically not require a cosigner?

Unsecured loans typically do not require a cosigner due to their nature. These loans are not backed by collateral, meaning the lender relies heavily on the creditworthiness of the borrower alone to determine if they qualify for the loan. If an individual has sufficient credit history, a strong credit score, and a reliable income, they may be able to secure an unsecured loan without needing a cosigner to guarantee repayment.

In contrast, secured loans, such as mortgage or auto loans, are backed by an asset (like a house or a car), which means lenders may be more willing to grant these loans without a cosigner due to the collateral involved. Student loans often require a cosigner depending on the borrower’s age and credit history, especially if they are young and have not established credit. Automobile loans can also be secured loans, as they are typically backed by the vehicle being purchased, which may lead lenders to seek a cosigner if the borrower’s credit profile is not strong enough.