How can I get a cosigner taken off a car loan?

When I was a college student with almost no income or credit history, I bought a car and asked my dad to be my cosigner. Now that I’ve been out of school for a bit, I have a good-paying job and a great credit score and want to remove my dad from the loan. How can I get my dad taken off the loan as a cosigner?

Answer
Your dad was super nice to cosign for you! I’m sure he’s proud of how far you’ve come since then!
Lenders enjoy the security that comes from having a cosigner, so the process of removing a cosigner can occasionally vary by lender. To remove a cosigner from your car loan, try the following methods:
  • Look over the loan contract to see if there is a cosigner release procedure.
  • If your contract doesn’t outline how to remove a cosigner, call the lender and ask if it’s an option.
  • If your contract doesn’t allow you to remove a cosigner, refinance the loan and submit your new application without a cosigner.
  • Pay off the loan if possible so both of you are free of the financial liability.
If you have to refinance the car loan, shop around and compare rates from multiple lenders to find the most favorable terms.
Keep in mind that if the only way to remove the cosigner is through a refinance, you shouldn’t automatically go through with it. Only refinance the vehicle if you’re receiving a more favorable interest rate. If your refinanced interest rate is higher, taking this loan doesn’t make sense if the only intention is to remove a cosigner. Instead, wait until interest rates drop or your credit score improves.
While comparing lenders’ rates, take the opportunity to shop around and compare car insurance quotes to find the best rate. If you’d rather leave the hard work of gathering quotes to someone else, use Jerry. The Jerry app can collect quotes from up to 50 top insurance companies like Travelers, Nationwide, and Progressive in seconds! They even help cancel your old policy once you select a new insurance policy.
Jack Walsh
Answered on Nov 05, 2021
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