How to Get Your Name Removed As the Co-Signer of a Car Loan

As the co-signer on another person's car loan, you are held legally responsible for repaying the debt. The lender relied on your good credit as security against the risk of lending to the primary borrower, who likely had bad or no credit. The only ways to get your name removed from the obligation are to get the lender to agree to release you or to have the primary borrower refinance the loan without you. You will require the primary borrower's cooperation for either of these solutions, so there is no guarantee that they will work.

Instructions

Co-Signer Release

1

Tell the primary borrower that you would like to be released from your obligations as a co-signer.

2

Ask the primary borrower contact the lender and ask to apply for co-signer release. If the borrower has made all of the payments on time so far and has a higher credit score than when he first applied, the lender might be willing to remove your name from the loan.

3

Get, in writing, the agreement that says you are released from all obligations with the loan. This release form will make it impossible for the lender to pursue you for payments in the future.

Refinance

4

Tell the primary borrower that you would like him to refinance his auto loan.

5

Help the borrower pull a copy of his credit report from the Annual Credit Report website and check its accuracy. If there is anything inaccurate, follow the instructions printed on the credit report to dispute the errors. Wait for confirmation that errors have been fixed before proceeding.

6

Ask the primary borrower to apply for an auto loan refinance with the same lender or a different lender. He will either need to qualify on his own with his credit history or find someone else to co-sign the loan.

7

Tell the primary borrower to keep making payments on the loan on which you are a co-signer until he receives confirmation that it was paid off with the refinance loan. If he misses a payment, this will hurt your credit score.