How to Get My Name Off a Joint Car Loan

Written By Holly Case
Last updated July 30, 2021

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July 30, 2021

Simple. Thrifty. Living.

Co-signing a loan can help a friend or loved one make strong financial choices. When someone can’t get a loan independently, another person’s superior credit rating can help them get the loan. But sometimes, factors can change over the life of a car loan. Changes might make it less desirable to have this impact on your credit score.

Maybe your relationship with the individual has changed. Or, maybe they’re not regularly making payments, which harms your credit as well. Perhaps, you’re looking to make a big purchase (such as a house). Being a co-signer for someone else shows that you’re legally responsible for the entire debt. Avoiding this additional loan can bring your debt-to-income ratio to a more favorable level. Eventually, you may wonder how to get my name off a joint car loan. There are several ways to accomplish this. In most cases, you will need some help from the other person who holds the debt.

Perhaps the easiest way to remove your name from a car loan is to pay off the debt. Depending on how much credit you have available, you may even pay off the loan with a credit card. Sometimes, particularly if the car loan has a high interest rate, it may even be cheaper to pay off the loan with a credit card with a lower interest rate.

You can also sell the car and use the proceeds to pay off the balance of the loan. Because the other party will still be using the car, they may not want to sell it. However, particularly if they’ve fallen behind on the loan or if it needs a lot of repairs, they may welcome an opportunity to find out how to get my name off a joint car loan. Then, they can look at getting a different used car, one that fits well within their budget.

Depending on how long the party you’ve cosigned for has held the loan, their credit may have improved to such a point that they can qualify for a loan on their own. Pull credit reports to find out about their current credit status. Your co-borrower can check their own credit report, often with a free trial. Having access to the most recent credit scores can help your co-borrower to make an informed decision and predict what kinds of terms they’ll be able to access.

Often, having a car loan for as little as six months can be enough to enable them to qualify for a new loan. How to get my name off a joint car loan is simplest and best when the person for whom you cosigned can take over the loan on their own. The good news is that interest rates have come down quite a bit in recent years, so they may not even end up paying much more.

Some lenders offer the option to release a cosigner after you have made a certain number of payments. Typically, borrowers must also meet other requirements as well. One of these requirements to get a cosigner release is to maintain a certain minimum credit score. In addition, the borrower also has to have made a certain number of payments. Usually, it’s required to have made at least one year of payments, but most lenders require more than a year.

Not all lenders allow a cosigner release from the loan. Your best bet is to look at the original loan documents again to see if you can look at how to get my name off a joint car loan. However, even if the loan documents say that the loan prohibits a cosigner release, you should still call anyway and make your appeal. You’re more likely to succeed if your co-borrower has good credit and respectable payment history.

You may have other options to consolidate or change the car loan, which is how to get my name off a joint car loan. One of the best places to start may be by looking at online loan options. Online loan options often accept even people with average or even poor credit.

If your co-borrower is a credit union member, this may also provide another alternative financing option. Credit unions offer credit and loans to people who may not otherwise qualify from traditional lenders. Another advantage of financing through credit unions is that they usually also offer lower interest rates.

Your co-borrower might also choose to put the balance of their car loan on a credit card. That is if they have that much credit available. This is usually not the most economical option. But it may enable you to get out of the situation of having co-signed for the loan.

You can also see if someone else will take over the car payments, similar to a sub-lease on an apartment. You may ask them to make partial payments, with you making part of the payments as well.

But be aware that this is also risky and may not solve your problem. You have to feel certain that the new buyer would make the payments. This is ultimately not much more reliable than asking the co-borrower to make payments. If you opt for this plan, make sure to carry insurance on all drivers of the car.

It’s usually difficult to change the terms of your car loan. You may not have any options of how to get my name off a joint car loan. If you’re not in a position to pay on the loan by yourself and your co-borrower cannot either, you may return the car to the lender. However, it’s important to know that they consider this a voluntary repossession. This will hurt your credit score.

Co-signing for a car loan often seems like it will be a nice thing to do, but it can also become a big hassle. Put a lot of thought into the issue before doing so. Keep your finances separate if you want to avoid these risks.

About the Author

Holly Case

Holly's work has been published on Healthline, Chowhound,, Kinsa thermometer corporate blog and others. She specializes in health and lifestyle pieces. Holly has a bachelor's degree with a double major in professional and technical writing and sociology.

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