Delete a car loan co-signer


If your situation has changed and you want to remove a co-signer from your car loan, there are three main options. You can refinance, get a co-signer release, or pay off the loan.

Options for removing a co-signer from a car loan

Having a co-signer for an auto loan is a great way to get approval from lenders if your credit score isn’t ideal, and gives your lender extra assurance that you’ll repay the loan. But those with additional financial responsibility alongside the primary borrower may want to pull out for a variety of reasons.


One way to remove a co-signer from your loan is to refinance. To do this, you will take out a brand new loan. In this way, you start from scratch and will no longer be attached to the co-signer.

Keep in mind that to get approved for a refinance, you will need to have made your monthly payments on time and have good credit.

Obtain a co-signer waiver

To obtain a co-signer waiver, you must first contact your lender. After contacting them, you can apply for release – if the lender offers it. These are just documents that remove the co-signer from the loan and place you, the primary borrower, as the sole borrower of the loan.

A caveat to this option is that the original term of your loan and the interest rate may be affected. Let’s say your approval depended on your cosigner’s good credit. If they are released from the loan, your lender may redesign the loan or adjust your current terms. You will have had to show timely payments before they agree. Along with this, not all loans have a co-signer release option, so it is wise to consider this before accepting a loan.

repay the loan

The easiest way to remove a co-signer is to simply pay off the car loan. If the withdrawal is due to financial hardship, this may not be the most practical option, but repaying the loan in full will remove liability from both the primary borrower and the co-signer.

To do this, you will need to repay the current loan balance as well as the repayment amount. You will need to contact your lender for specific methods of repaying your loan, particularly if the repayment term is earlier than originally agreed.

Next steps

Removing a co-signer can be a time-consuming process, so it is recommended that you think carefully before accepting a co-signed loan. And you should only delete under very specific circumstances.

But, if necessary, refinance, release a co-signer or simply pay off the auto loan.

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