Getting name off of car loan

[Anonymous]

Hey guys does anyone know if it’s possible to get a name taken off a car loan or if it’s even possible? My boyfriend and his mommas name are both on it and we would like for his name to be removed. Probably have to do a whole refinance or something huh? Thanks

[Anonymous]

Refi if you're not too upside down on the loan.

[Anonymous]

Ok thanks for your help. Do you happen to know if it will actually hurt his credit if he takes his name off the car loan. I wonder what will show on his reports if he takes his name off.

I am wondering because we are trying to buy a home and I thought that it would look better if the car loan was out of his name so that we don’t have any debt to income ratio. His sister took over the car payments anyway because she wanted the car so I would like her to put it in her name.

[Anonymous]

What’s the current balance and original balance?

Does he have any other loans open and reporting?

[Anonymous]

20, 000. About 15,500 still owed. New 2015 Kia financed in 2016.

And just 3 credit cards open in his name with about 3% utilization

[Anonymous]

Only one bureaus mortgage FICO is helped by the presence of an open loan. I don’t recall which bureau tho.

So you may see a small or tiny ding on whichever bureau that is. Someone else would know that detail better!

[Anonymous]

Ok thank you you’re always so helpful!!

[Anonymous]

Right back at you -- if people didn't post these questions, I wouldn't have a reason to keep studying and learning new things!

I looked it up, and the one bureau whose mortgage FICOs may be affected by the presence of an installment loan appears to be Experian.  In this loan's case, it might actually be a little boost but it isn't a major boost.  I don't know (or can't remember) how far away your mortgage application is, but if it's over 6 months, you can substitute this loan with the Alliant SSL Technique at very very very little cost and get those points back and then some (on EX mortgage score).  That link is here: http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...  If your EX mortgage FICO happens to be your "middle score", then getting rid of the auto loan and adding the SSL would actually raise your middle score a little bit (maybe 5 points? 10?)

but I wouldn't do Alliant SSL if your mortgage is less than 6 months away!