How to Remove a Cosigner From a Car Loan

Can you remove a cosigner from a car loan? We hear this question from drivers in Gardendale to Hoover all the time. And the answer is yes! Removing a cosigner from auto loan is possible with a little bit of paperwork. Edwards Chevrolet Co., Inc. can explain how to remove a cosigner from a car loan.

Why Have a Cosigner?

A cosigner can help you get an auto loan in Bessemer with bad credit, or if you’re new to getting credit, or don’t have a high enough income to qualify for an auto loan. Your cosigner will take on responsibility for your loan if you don’t make payments. A trusted friend or family member is the most common cosigner. Why would you remove a cosigner? If you’ve built credit with prompt payments on all your bills, it might be time to find out how to remove a cosigner from a car loan so your credit report can benefit from your good payment habits.

How to Remove a Cosigner From an Auto Loan

There are several ways to go about removing a cosigner from an auto loan.

How to remove a cosigner from an auto loan, method #1 — Refinance the loan. If you’re removing a cosigner from an auto loan because it was your ex-spouse, you should refinance the loan. A divorce decree doesn’t undo the cosigner agreement. If you and your ex are separating your finances, refinancing your loan will make for a clean break.

How to remove a cosigner from an auto loan, method #2 — Cosigner Release. This is an option if your auto loan has a cosigner release option. Different loans can have different terms for removing a cosigner from an auto loan. Some remove them after a certain number of payments have been made by the primary borrower.

How to remove a cosigner from an auto loan, method #3 — Pay off the loan. Can you remove a cosigner from a car loan by paying off the loan? Absolutely! Your name will be the only one on the title.

Learn More About Auto Financing in Birmingham

Now that you have an answer to, “Can you remove a cosigner from a car loan?” learn more about auto financing by contacting the finance department at Edwards Chevrolet Co., Inc.. Our team is here to be your one-stop-shop for all things auto and can help you with all of your financing needs. Stop in to work with our team today! We can help you make smart decisions across the board and can help you weigh the pros and cons of things like gap insurance, how to trade in a financed car, and more!