Can co-signer be removed after period of time?

Anonymous · ‎03-28-2009

Hi All again,

Last year I was surprised when my 21 year old daughter couldn't qualify for a car loan with Nissan as she has several credit cards all paid on time with respectable Credit limits and no balances (she had them for 2.5 years at the time).

I had to co-sign for her and she is 15 months into the payments. I am sure that the fact that I have 3 car leases on my report may be weighing it down a bit. I would love to get her lease off of my report. I may need to apply for student loans this year for another child and my own lease is up in July and I am a bit panic stricken with the currrent tight credit market that eventually someones going to tell me I have too much outstanding debt even though I don't pay for my 2 kids cars. They are on my report but the kids pay for them.

2 questions:

Is it possible that with 15 months of on time payments Nissan might allow the lease to be moved solely to her name? Are there any reprecussions?

Would doing so help or hurt my FICO score or her credit score?

Message Edited by learningfico on 03-28-2009 06:34 PM

Anonymous · ‎03-28-2009

Call Nissan but I doubt it.

Removing you from her loan (if it can be done), for the purposes of scoring ,will not hurt her and will probably help you.

Message Edited by usmc58555 on 03-28-2009 07:30 PM

MattH · ‎03-28-2009

@Anonymous wrote:
Hi All again,

Last year I was surprised when my 21 year old daughter couldn't qualify for a car loan with Nissan as she has several credit cards all paid on time with respectable Credit limits and no balances (she had them for 2.5 years at the time).

I had to co-sign for her and she is 15 months into the payments. I am sure that the fact that I have 3 car leases on my report may be weighing it down a bit. I would love to get her lease off of my report. I may need to apply for student loans this year for another child and my own lease is up in July and I am a bit panic stricken with the currrent tight credit market that eventually someones going to tell me I have too much outstanding debt even though I don't pay for my 2 kids cars. They are on my report but the kids pay for them.

2 questions:
Is it possible that with 15 months of on time payments Nissan might allow the lease to be moved solely to her name? Are there any reprecussions?
Would doing so help or hurt my FICO score or her credit score?

Message Edited by learningfico on 03-28-2009 06:34 PM

Usually the only way to remove a cosigner is for the primary borrower to refinance with a different lender in his or her name alone, if their credit and income qualify them with the new lender.

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Anonymous · ‎03-30-2009

Done that before. The only way is to refinance under the other co-signer's name. I co-signed a car for my ex-gf before as a primary co-signer. When we broke up, I asked her to refinance under her name. That was the only option we had. I was told either one co-signer cannot be removed from the loan unless you refinance under one person's name.

Anonymous · ‎03-31-2009

Thanks on this one too! Did it cost anything for her to refinance?

Anonymous · ‎03-31-2009

Thank you Matt!

Anonymous · ‎03-31-2009

Thank you USMC

Anonymous · ‎03-31-2009

@Anonymous wrote:
Thanks on this one too! Did it cost anything for her to refinance?

It definitely would cost her something. It depends what you view as a cost. My ex-gf refinanced with another bank with a slightly lower rate. That was our only option to clear my name off the car or the loan.

Message Edited by Eiso on 03-31-2009 07:21 PM

Anonymous · ‎03-31-2009

I have in the past had some dealers say that you could have the co-signer's name removed afer 6 months. But, I've never heard of it being done before.