Getting Off A Joint Car Loan
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How to get your name off a joint car loan

Getting a job can be a bit difficult, and that shouldn’t stop you from getting a car loan. If you are not currently employed and still looking to get a car loan, then you have come to the right place. 500 Below has all the means to make that happen.

We realize that financing is not something that comes easy, especially when you are on disability, on bad credit, or maybe most of the income is coming from disability funds or social security. But we don’t want you to lose any hope – as we believe, “DIFFICULT DOESN’T ALWAYS MEAN IMPOSSIBLE.

Getting a car loan when unemployed

When you are unemployed, you need a car to get to job interviews to increase your chances of getting a job.

When you don’t have any source of income, getting a car loan can be a bit difficult. However, there are many other ways you can get a car loan while being unemployed. All you need to do is show the lender that you have other sources of income to make the payments. If you can do that, there is no way you can’t get a loan.

Getting someone to cosign your loan

The best and perhaps the easiest way to get a loan during unemployment is by getting a co-signer. Having a co-signer puts you in a better position as it shows that there are two people responsible for repaying the loan. This can obviate the problem of not having a regular income.

However, the co-signer will have sufficient credit and income to pay the loan, and your success will impact their credit, and so will your failure. So always make sure you pay your payments on time.

Cosigning a loan makes the loan application attractive for the lender, and lenders are more inclined towards giving you better and favorable terms such as a low rate of interest, lower fees, and better flexibility.

People need a cosigner when they are incapable of applying for a loan alone. You can one of those people and desperately need a cosigner. There can be many reasons for that, such as bad credit history, inadequate monthly income, or lack of credit history.

Non-Taxable income

  • Social Security Disability
  • Alimony
  • Social Security
  • Child Support

These are some of the non-taxable incomes that come along with the regular income, generally on a monthly basis. These sources of income can influence the loan decision to be in your favor giving the assurance that you are capable of making timely payments.

What other types of income sources need to be considered?

As we have already established that you don’t have regular PAYG sources of income, but what most people fail to realize is that there are other sources of income that are viable and can help them get a car loan.

It’s time for you to start thinking outside the box and identify means to show proof of alternate income.

You might be a freelancer working from home, which can also count as a viable income. Make a record of your freelance income by showing your bank statements, incoming transactions, and eBay invoices.

You can also have a rental income or making a room available for rent at your property, also called automatic income. Any regular source of income you have can increase your chances of getting a loan.

About to start a new job, can I get an auto loan?

If you are about to start your new job, then you must have the employment contract, and your date of joining has also been arranged. Some lenders do give loans on the basis of the employment contract. The employment contract is proof of regular payment in the future. There are two conditions, however, that you need to meet in order to approve for the loan:

  • There must be at least a one-month gap between your current and previous job
  • Your new job is in a similar industry as your last job

Best case scenario, if you have passed through your probation period, then there is no way you shouldn’t qualify for a loan.

Applying for an unemployment car loan

If you have decided to apply for an auto loan, we suggest opting for a cosigner or borrower. Get one of your family members, a relative, or a close friend to cosign the loan for you so that the procedure can go smoothly.

If you have other sources of income like the ones we mentioned above, bring us the documents that can prove that, and we will make sure you get approved for a car loan right away.

How 500 Below Cars handles it

We have thousands of customers who got approved for a car loan while they were unemployed. Yes, having a steady source of income is always a plus, but if you are currently not employed and looking to buy a car, we can help you.

Schedule an appointment with us so that we can work together and figure out alternate means and navigate all possible options that can help you get a loan. We can talk to your family members if they want to cosign for you, find other possible means of showing your income. In short, when you contact 500 Below Cars, you never leave disappointed. 

The process of getting your name off a joint car loan.

A joint car loan is basically when the primary car loan borrower shares the loan with someone else. For a joint car loan, it is essential to have a co-signer in order to get approved for the loan. However, things change, and situations can take a turn for the worse. So, if you want to get your name removed from a loan or want someone else’s name removed, here is how you do it.

Why you would want to get off a cosigned loan?

Couples often get a joint car loan and regret it when they break-up or get a divorce or in some cases, death. A co-signer is someone liable for paying the loan when the primary owner of the loan is unable to pay. Being a co-signer might feel like you are trying to help someone, but that is not the case most of the time. Remember, when you are a co-signer for a loan, you are putting a lot on the line. For example, you might be putting yourself on the risk of repaying a loan with a slight improvement in the credit score.

Co-signing a loan means that you are taking risks that are not worth their rewards.

Another reason for second-guessing your co-signing decision is that the lenders will be suing you first in case the payment is not made. This might seem a bit strange but think from their perspective. You becoming a co-signer for someone to allow a defaulter to get a loan, which he didn’t in the first place. You basically took the guarantee that the other person would pay.

How to remove yourself as a cosigner on an auto loan?

Chance are, if you are reading this article, it means you are already regretting your decision to co-sign a loan. You realized that you got a bit carried away and decided to co-sign a loan for a friend or family member, and it was clearly not a good idea.

Generally, the bank will not be removing your name from the co-signed debt unless the other person demonstrates that they can handle the loan on their own. Well, now you don’t need to worry anymore. Here is how you get your name removed from the co-signed loan.

Get a co-signer release

There are some loans in which the co-signer can get the release after a certain number of on-time payments. The standard time period is two year on-time payments.

Consolidate or Refinance

Another way is to get rid of the co-signing is to bring someone who can become a substitute co-signer. Make sure the other person has a good credit score and has sufficient income to handle the loan payments.

How to remove someone else as a cosigner on your auto loan?

A co-signer is usually someone who co-own a vehicle and, in most cases, it’s the spouse. Sometimes the decision to make someone a cosigner is regret, or there is some kind of falling apart between the parties. Here is how you remove the name of a co-signer from your car loan.

Pay the balance

The best way for you to get the burden of your shoulder is to pay off the entire loan in one go to close the account. We know that this doesn’t seem too practical, but it is the easiest and easiest way of releasing the burden, and you will get rid of the obligations.

Release the Loan

Get the loan from a lender offers a co-signer’s release option. The release terms vary from lender to lender, but it requires making on-time payments for a specific time period.

Transfer to 0% APR Credit Card

Borrowers can qualify for a 0% APR Credit Card and get one to pay off all the loans. The APR Credit Card will give you a time period of almost 6-18 months period with zero interest. When the loans are paid with the CC, all your debt will be transferred to the borrower, and the co-signer will no longer be liable for any kind of obligation. Just remember to stay on top of the credit card balance to avoid paying high-interest rates.

How to refinance to get a cosigner off?

The better the rates and terms for refinancing, the more it will be beneficial for you. It is one of the best ways of releasing cosigners. Borrowers need to be able to qualify for the process of refinancing as it is not as it may sound. Not everyone is eligible and has the right credit score to meet the requirements. Especially those individuals who are immigrants, non-citizens, etc. Sometimes the refinancing offer is not offered because the past credit score is bad, several loan denials, and lack of credit history. You can consult with the financial services provider to see if you can refinance the loan.

How can 500 Below Cars can help you?

We suggest you try getting a car even if you have a bad credit score. 500 Below Cars have a network of several car vendors that can get you the car best suitable for your condition. However, if you are in a mess of co-signed joint loans, then we can also help you there.

Removing someone from a joint car loan is not a big deal for us. We just want the parties to come to one of our locations to handle the legal matters. We will make sure that the process is smooth and easy for you. In no time, you join a car loan with being converted into an individual car loan. To get further details, please call us at 713-910-7500

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