So last december my dad cosigned for a car for me. I was 19 and they needed someone with a long and good credit history so he offered. I have been making all the payments myself on time and i sometimes pay a little extra of what is due. I now want to remove him from the car loan but I have no idea how to go about that? I have great credit and I know that won't be an issue. And if there is more than one way please explain that way I have options. Can someone please help me.
Thank You
Update:The way I know that my credit is good enough now because I qualify on my own to get a brand new car when i went to the dealership a few months ago. Or Would it just be easier if I trade my car in the end next year and try to get one on my own instead of waiting until I pay off my car in full. I want a new car either way in the next two years.
Answers & Comments
Verified answer
Pay the loan in full, even if it means financing with a local bank or credit union to pay off the loan.
No loan company is going to take off a co-signer unless the loan is paid in full. Why rely on one creditor when currently two are fully obligated for the loan.
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You have to refinance the car in order to have it under your name only. If your dad isn't complaining, why refi and start all over again?
simply put.....co signers on notes are gold to finance people...they're off the hook for the
entire note/got two people to go after if one takes a hike...so they're not gonna let the gold
go down the street. Retire the note is the only way 2nd name is goin away. You can have
teh same house redo the note if they will, but doubt that'll happen cuz they'll recognize whats
goin on....if all's ok, and you're makin the note, leave his name on there and go on your way
till you're done with it or get another car. BTW buying another car while there's an oustanding
note on the first one? not a good idea....balance of note will move forward to new note...and
you'll really be underwater....owe lots more than any of its worth. Bide your time/take care of
it/retire the note early if you can..........put some money in the bank as well.
Only way is to pay off the loan. You might try to refinance, but you will likely end up with a higher interest rate and may not even be able to qualify on your own credit. One year history is STILL a limited history that probably requires a co-signer for a car loan.