How to get out of a cosigned car loan?

I cosigned for my brother’s car loan and he’s been acting really irresponsibly lately. I’m really worried he won’t make his payments. I want to help, but I also don’t want to ruin my credit. How do I get out of this cosigned car loan?

Answer
I’m sorry to hear that you’re in this situation. There are a few ways to get out of a cosigned loan.
  • Refinancing: Your brother could refinance the loan without your name on the new loan. As refinancing is a new loan contract, this would remove your name and responsibility from it.
  • Check the loan agreement: Some loan agreements include a cosigner release option. Often, if the loan meets certain conditions, the lender will allow you to remove your name.
  • Pay off the loan: While this likely isn’t an option, if the loan is paid off in full, you would be released as the cosigner.
If he seems uninterested in either of these viable options, you may be able to convince him with the Jerry app.
Not only will refinancing help get you off the loan, but it’s a great way for your brother to lower his car payments. Finding the right lender can be stressful and time-consuming. Jerry makes it simple–download the app, answer a few questions, and Jerry matches you with multiple lenders that meet your needs.
Chloe Jenkins
Answered on Nov 11, 2021
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