The ACL Prime Rate – also known as the prime lending rate – is the annual rate we use to set variable interest rates for our loans, lines of credit and mortgages. The actual rate you’ll get on your loan or line of credit is based on many factors in addition to the Prime Rate. These include how much you’re borrowing, your credit history and if you’re using collateral.

When you secure a loan, you’re offering security that your loan will be repaid. You can secure a loan by using a personal asset as collateral, such as your home. This may let you be approved for a higher amount or get a lower interest rate. If you’re not offering any collateral, then your loan is known as unsecured.

While both can help you get a loan, there are different roles and responsibilities for each:
A co-borrower is a person who applies for a loan with you. Their income, credit score, etc. is taken into consideration, just as yours is. And both of you are responsible for paying back the loan. Think of them as your loan partner.
A co-signer isn’t your partner but your backup. It’s not expected they make any regular payments on your loan. Their role is to take over your loan repayments in case you can’t keep up with the responsibility.