How do I remove a co-borrower from my car loan?

My mom was on my loan as a co-borrower when I first bought my car. Now that I'm financially stable, I want to remove her from the loan. How can I do this?

Answer
The only way to remove a co-borrower from your car loan is to refinance the vehicle. While that sounds easy enough, you have to make sure that your credit score and income are good enough to get approved for a refinance.
Furthermore, there’s no point in refinancing the loan if you can’t get a lesser interest rate than your current loan. If you have a year or less on the loan, refinancing won’t be worth the effort, either.
While it’s great that you’ve built up financial stability, if your mom stays on the loan until you pay it off, you won’t face any consequences. You’ll just have a little extra security.
If you’re feeling more responsible the more financially stable you get, you may as well take a gander at your car insurance. To find better rates and save yourself hundreds of dollars a year, use the Jerry app to compare dozens of competitive quotes.
Eric Schad
Answered on Nov 15, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store