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