In some situations, you may already have a co-borrower on your auto loan. Perhaps you needed that borrower to help you qualify for the loan. Now, you may have stronger credit or more income. You may now qualify for an auto loan on your own for various reasons.
Removing a co-borrower from your current loan is possible in most situations. Refinancing your auto loan can help to accomplish this.
When you refinance, you can lower the monthly payment either by extending the loan term or qualifying for a better interest rate.
In order to qualify for refinancing, you generally have to meet these five requirements:
- Your credit score needs to have improved since taking out the initial loan
- You have to be current with your loan payments
- Your car has to meet the age and mileage restrictions of the new lender (newer than 2005 with less than 125,000 miles)
- The loan amount has to be within the new lender’s acceptable range
- Make sure that you let the lender know ahead of time that you’re removing the co-borrower.
Simply fill out our free car loan request form, and we’ll get started on the process of matching you to a lenders right away. To qualify for a refinance, the borrower needs to have a good credit history and enough income to make the new loan’s monthly payments.
The original cosigned loan would still be listed on your credit report, but it should indicate the account is closed and paid in full. Keep in mind that the co-borrower needs to agree to this process. Our lenders can help obtain the necessary permission from the person that you wish to remove.