How to Remove a Cosigner From Your Car Loan

Having a cosigner on your car loan can be useful, especially if you have little or no credit or less than stable employment. However, as your financial situation changes, you may find you no longer need a cosigner. Whether you experience a change in your relationship, creditworthiness or finances, you might reach a time when you need to remove your cosigner from your loan.

Can You Remove a Cosigner From a Car Loan?

You can only remove a cosigner from your car loan in a few ways because the process makes it difficult for both parties to back out. Many banks and lending institutions also prefer if a borrower has a cosigner as it provides greater confidence that their loans will be repaid.

Why You Might Want to Remove a Cosigner

Common reasons you may want to remove a cosigner from your car loan include:

• Domestic fallout.
• Financial strain.
• Significant credit hits.

How to Remove a Cosigner From Your Auto Loan

You can remove a cosigner from your auto loan in three ways.

1. Check Your Contract and Contact Your Lending Institution

The first way you can remove a cosigner is by investigating your car loan contract. You can also contact your lender to see if you have the option to release your cosigner. Some lenders have certain restrictions when it comes to removing cosigners, such as:

• They must make a certain number of payments.
• The cosigner is not the primary borrower.
• Your cosigner’s credit score hasn’t dipped below a certain level.

2. Refinance Your Loan

Another option for removing a cosigner is to refinance your loan. This process involves taking out a separate loan from the same lender to pay off your current loan or transferring the balance to a new loan from a new lender. When you refinance, you’ll have to sign a new loan application and only state your name on the contract to remove your cosigner from all legal obligations.

3. Pay off the Loan

The most straightforward way to remove a cosigner is to pay off your loan. Paying off your loan fulfills the terms of your loan obligation and releases the cosigner from any financial commitments.

Learn How RefiJet Can Help You Today

If you’re looking to refinance your loan to remove a cosigner, RefiJet can help. After supplying us with your information, we’ll find available loan offers from one or more lenders. If you’re ready to get started with our refinancing services, complete our eligibility form today!

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