Can a Cosigner Be Removed from a Car Loan?

If you need to buy a car but have bad credit, having a cosigner can help you get a loan. If at some point things improve down the road, can you remove a cosigner from a car loan? Yes, you can but it can be complicated. Lenders have different rules but most will let you change your loan or contract. Read on to find out how to remove a cosigner from an auto loan today then contact us with any other questions about buying a car!

What is a Cosigner?

A cosigner can help you qualify for an auto loan in Manistee if you have poor credit. Here’s how:

• If you have missed payments or have a high debt-to-income ratio, adding a cosigner to the loan can convince a lender to give you a chance.
• The idea behind a cosigner is that the other person will make the payments if you can’t keep up. If you are wondering how to remove a cosigner from a car loan, you need to be sure you can make all the payments. A payment calculator can help you figure out how much your payments would be.
• Acting as a cosigner puts your partner at risk because if you miss payments, it will affect the cosigner’s credit.

How to Remove a Cosigner From an Auto Loan

While it isn’t easy, it is possible to remove a cosigner from an auto loan in Cadillac. Here are some possible answers to the question “Can you remove a cosigner from a car loan?”

• Refinance the Loan – Refinancing a loan means working out new loan terms. This could be with the original lender or a new one. If you can refinance on your own, your cosigner will be removed from the loan.
• Release the Cosigner – Look at the contract and see if a cosigner can be released. If you have made enough payments on time, you may be able to remove the cosigner’s name from the contract.
• Sell the Car – If nothing else works, you could sell the car in Grayling and pay off the loan. This will fulfill the contract and remove the cosigner’s obligation.

Come to Serra Cadillac Of Traverse City for Your Next Car!

Now that you know how to remove a cosigner from a car loan, come to Serra Cadillac Of Traverse City to discuss your auto financing options. Bad credit doesn’t have to stop you from getting the car you need!