How to Get Off a Cosigned Loan

A loan contract is a legally binding agreement. If either you, as cosigner, the borrower or the lender breaks the terms of the agreement, the other party can sue. Therefore, once you sign up to be a cosigner on someone else's loan, you are normally on the hook for the life of the loan. In some rare cases you can remove yourself from the obligation, but it is difficult.

Instructions

1

Calculate the payoff figure on the loan. The easiest way to relieve yourself of either the mental anguish of cosigning or the financial burden is to pay the loan yourself. Scrape together all the funds you can: retirement loans, savings and investments. While this may not fit into your long-term plan, it may save your credit score.

2

Refinance the loan just under your name (perhaps with more favorable credit terms) if you cannot pay it in full. Check with your local credit union and bank for personal loan rates and payments.

3

Pull a current credit report for free at annualcreditreport.com. Look at the full payment history of the account in question. If--and only if--the payment history is perfect, consider contacting the lender about potentially removing your name from the loan.

4

Devise an argument to use when you contact the lender. You must reference the perfect payment history. Other factors to consider are the remaining balance on the account and canceling the credit line.

5

Visit the lender in person, if possible, to discuss removing your name. If approved, you'll likely need the primary signer to agree to this as well.