How do I remove my name from an auto loan, so I can get my own auto loan?
The person you cosigned for may have had bad credit or no credit at the time. Now you want to get a car loan in your own name but the cosigned auto loan is standing in your way. Removing your name from a cosigned auto loan wont be easy, for some debts it may not even be possible. Hopefully the person with bad credit or no credit has had enough time to establish or re-establish his/her credit. Here at credithelpfinancial our professional staff can look into the possible options for your auto loan as well as getting your cosignor his/her own loan, therfore helping the both of you.
Cosigning an auto loan basically tells the bank that youre willing to make payments if the other person doesnt. Cosigning also means the bank can pursue you for payment on the auto loan even if the other person files bankruptcy or passes away before the debt is paid.
As a general rule, the banks wont let you off the hook for the auto loan unless the other person has demonstrated they can handle the loan on their own. Think about it: you would never have been asked to cosign the auto loan if the other borrower had shown this ability from the beginning. Maybe things have changed since then. The bank will definitely want proof. We can help. Come in or call and discuss your options with credithelpfinancial professional staff.
Removing Your Name from an Auto Loan
Get a cosigner release. Some Auto loans have a program that will release a cosigners obligation after a certain number of consecutive on-time payments have been made. Two years of on-time payments seems to be the norm. Read through your loan documents to see if theres any type of program associated with your loan. Or, call the credithelpfinancial and we can help guide you in the right direction.
Refinance or consolidate. Another option is to have the other borrower refinance the Auto loan into their name. To qualify for a refinance, the borrower needs to have a good credit history and enough income to make the new auto loans monthly payments. Consolidation is common with student loans. If the borrower qualifies, they can use the consolidation loan to pay off the loan you cosigned. The original cosigned loan would still be listed on your credit report, but it should indicate the account is closed and paid in full.