- 1). Review the loan agreement for a co-signer release clause; the document may indicate if you are eligible to remove your name. Co-signer release clauses permit co-signers to take their name off the loan once the primary signer makes on-time payments for a set number of months. If you do not have the agreement, contact the lender to see if it will remove your name.
- 2). Ask the primary borrower to refinance the loan and, in the process, remove you as co-signer. If the lender does not allow co-signers to take their name off loans, contact the primary signer and express that you want your name taken off the loan as co-signer. The primary borrower must refinance the auto loan to release you from the obligation; this requires him to apply for and be approved for a new auto loan. A lender will check the borrower’s credit score and income before making a decision.
- 3). Confirm that you are no longer a co-signer by checking your credit report. If the primary signer qualifies for a loan on his own, the new auto loan supersedes or pays off the original one. Check your credit report after a couple of months to confirm that the original loan -- the one for which you co-signed -- is paid. Get your report from AnnualCreditReport.com.
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