Cosigner for a Car: What Is a Cosigner?
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What Is Cosigning?
How Does Using a Cosigner Work?
Who Can Cosign a Car Loan?
When to Cosign an Auto Loan
When Is It Best to Get a Cosigner for a Car?
You have a limited credit history You have a low credit score Your debt-to-income ratio (the amount of debt you have in relation to your income) is too high Your employment history is too short or unstable You’re otherwise considered to be a high-risk borrower
Can Your Use a Cosigner When Refinancing an Auto Loan?
What Rights Does a Cosigner Have?
Pros & Cons of Cosigning an Auto Loan
The Cosigning Process
Can a Cosigner Be Removed From an Auto Loan?
Paying off the loan: If this is possible, then you’ll not only remove the cosigner from the loan but you’ll get rid of a monthly payment. Make sure there are no fees for paying early — or, if there are, that the payoff still has enough value to move forward. Investigating a cosigner release: Check your car note or talk to your lender to see if there is a clause in your loan papers to release a cosigner if certain conditions have been met. If there isn't, ask the lender what they would need to release the cosigner; they may agree if they feel confident that you can make the payments on your own. Refinancing the car loan into your name only: If you had financial or credit-related reasons for getting a cosigner and your situation has since improved, then you may be able to refinance the car into just your name. Refinancing for borrowers with a bad credit score can also sometimes be an option.
The Takeaway
About the Author
Kelly Boyer Sagert is an Emmy Award-nominated writer with decades of professional writing experience. As she was getting her writing career off the ground, she spent several years working at a savings and loan institution, working in the following departments: savings, loans, IRAs, and auditing. She has published thousands of pieces online and in print.
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