My dad is going to cosign for me to get a vehicle and I was wondering how long he had to stay as a cosigner. Ive heard that he can take his name off in 3 months,6months or a year. Anyone know ? Thanks
2006-08-16 19:07:38 · 6 answers · asked by Amber W 1 in Business & Finance ➔ Credit
This is for a used car lot we are good friends with this person.
2006-08-16 19:22:07 · update #1
It depends on the contract. Generally he would be the co-signer for the full length of the contract, and you CAN'T just take the co-signers name off the contract. After you establish credit, you can sign a new contract without his name on it. You may have to pay a slight fee to do this.
2006-08-16 19:13:35 · answer #1 · answered by Anonymous · 5⤊ 0⤋
This is a question for your lender. If you are using Manufacturer Financing like GMAC or Ford Motor Credit, he will probably remain as the cosigner for the length of the note. If you are using a local bank they might be willing to release the cosigner responsibility based on consistent on-time payment history and 20% equity, or 20% paid off. For example: Original note: $10,000. Once it is paid down to $8,000, if you haven't missed any payments or been late, they might release his obligation. But find out first and get it in writing.
2006-08-17 02:18:54 · answer #2 · answered by Marshall A 2 · 2⤊ 0⤋
To get someone's name off of a car loan the loan would have to be refinanced with just yourself as the one taking out the loan.
Use this time to build your credit if your Dad is anxious about being taken off. I'd say give your self 6 months to a year.
Get your 3 credit reports and go over them. Actually - see if the auto -finance company will give you copies since they had to pull your credit to approve you.
Get 4 lines of credit open. One of them will be the auto loan. Get some credit cards, department store cards or maybe a secured card. Go to www.bankrate.com for some articles on starting your credit off. If you have 4 lines of credit open and you pay your bills on time for 6 to 12 months - you will develop a good credit score. Then you will be in a position to be able to refinance the car loan and have it just in your name.
Good luck.
2006-08-17 10:20:19 · answer #3 · answered by Think.for.your.self 7 · 1⤊ 0⤋
Your father will be on the loan until it is paid in full. Any late payments you make on it will also be on his credit report.
You need to thank him for the use if his credit to help you get started. It is a risk for him but a loving benefit to you as his child.
Likely you also got a great rate on interest as well. Never forget that. He has faith in you and that you will honor your agreement. Don't let him down, and perhaps more importantly don't let your self down.
Good luck, drive safely and buckle up!
2006-08-17 02:15:50 · answer #4 · answered by hithere2ya 5 · 3⤊ 0⤋
they kept my husband on my daughters car till it was paid off, so dont expect any less.
2006-08-17 02:28:53 · answer #5 · answered by Anonymous · 2⤊ 0⤋
you will have to keep him on the loan until your finshed paying for your car
2006-08-20 22:54:46 · answer #6 · answered by pattibcacl 6 · 1⤊ 0⤋