Can I refinance my car loan without my cosigner? (2025)

Can I refinance my car loan without my cosigner?

To refinance without a cosigner, you generally need a good credit score, stable income, and a history of on-time payments. The lender will reassess your financial situation to ensure you can handle the loan independently.

Can you refinance a car loan without the cosigner present?

Refinancing the loan: If you want to remove a cosigner from your car loan, you may be able to refinance the loan in your name so it becomes your responsibility alone. For example, if you've recently gone through a divorce and your ex-spouse is a cosigner on your loan, you could refinance the loan in your name only.

Does a cosigner have to agree to refinance?

With this information, the lender will make an offer. You and your cosigner will then need to sign the new loan agreement. Since the lender will consider both your credit and your cosigner's credit, you should have an open discussion about finances with your cosigner before you apply for refinancing.

Do you need both people to refinance a car?

The borrower must provide details about their income, credit score, and vehicle, while the lender must approve the new loan terms and pay off the existing loan. However, if you have a co-signer on your car loan, they can refinance the loan with you.

Can you refinance without a cosigner?

You'll generally need good to excellent credit and stable income to qualify for refinancing without a cosigner.

What credit score is needed to refinance a car?

Most lenders require at least 600. You likely won't get a better rate by refinancing with a score lower than this. It could even cost you more overall, especially if you increase your loan term to reduce monthly payments. You can check your credit score for free.

Does refinancing a car hurt your credit?

Refinancing may lower your credit score a few points, but the impact to your credit score will only be temporary. Applying for a loan generates a hard inquiry. Refinancing may be worth it if rates have dropped since you took out your loan.

How do I take my cosigner off my car loan?

Can a cosigner remove themselves from a car loan?

Fortunately, you can have your name removed, but you will have to take the appropriate steps depending on the cosigned loan type. Basically, you have two options: You can enable the main borrower to assume total control of the debt or you can get rid of the debt entirely.

Whose credit score is used when buying a car with a cosigner?

Lenders can consider the credit scores of both borrowers when co-signing an auto loan. If you have a lower credit score, having a co-signer with a higher score could work in your favor. In terms of which credit-scoring model is used for approvals, that can vary by lender.

Can you refinance a car loan immediately?

During the first 60 to 90 days of the car loan

Most lenders won't even consider an application to refinance if the title hasn't transferred. But waiting could be an opportunity to pre-qualify with more than one refinancing lender and compare rates.

Is it hard to refinance a car loan?

Refinancing a car loan is typically straightforward and may save you money. It works almost the same way as the original loan process; you start by shopping around for the best offer. In fact, you can get multiple offers within about two weeks, and it will only count as one inquiry on your credit history.

Can I transfer my auto loan to someone else?

The new owner will complete the new loan paperwork and transfer ownership at the DMV. Some lenders have assumable loans, which allow you to transfer your loan to another person. If your lender doesn't have loan assumption written into your loan paperwork, you won't be able to transfer your loan to another person.

How soon can you take a cosigner off an auto loan?

A cosigner can, more or less, be removed at any point during the lifetime of a loan. How you choose to go about it and your financial situation — as in the case of refinancing the loan — may impact your ability to take advanatage of some options, though.

What credit score does a cosigner need?

Common cosigner requirements

Typically, your cosigner should have: Good-to-excellent credit: Your cosigner is your backer, so it makes sense that they should have strong credit. An excellent credit score is best, but try to aim for at least good credit or above (so a score of 670 or higher).

How long does it take to refinance car?

How Long Does Auto Loan Refinancing Take? If you refinance your auto loan, expect it to take anywhere from several hours to a few weeks. If your new lender approves your loan on the same day you apply, it's possible to get the money, pay off the old loan, and sign the new loan agreement in a matter of hours.

Do I need a downpayment to refinance a car?

You could get a better interest rate and improved loan terms if you refinance your auto loan. The application process is very similar to securing a new loan, but a down payment isn't required.

Which bank is best for refinancing car?

Who is the best to refinance a car with?

What information do I need to refinance my car?

What are the disadvantages of refinancing a car?

Refinancing also comes with the risk of higher interest rates. If your credit has dipped or interest rates have gone up, you may find interest rates higher than your current one. In the current market, steep interest rates aren't uncommon. Recent Fed rate hikes have driven interest rates up to record highs.

Does refinancing mean starting over?

Because refinancing involves taking out a new loan with new terms, you're essentially starting over from the beginning. However, you don't have to choose a term based on your original loan's term or the remaining repayment period.

Can you switch cosigners on a car loan?

While it is possible to remove a co-signer from a loan, simply replacing one co-signer with another on the original loan is unlikely. The process is more complex and can involve refinancing the loan, completing co-signer release paperwork or simply paying the loan in full to end the co-signer's involvement.

Can you remove cosigner on title?

To remove your co-signer from your car loan, you can ask your lender for a co-signer release. That option may have already be built-in to your contract with your lender. The paperwork on your car financing may state specific conditions under which you can get the co-signer release.

Can you sell a car without the cosigner?

Even though you both own the car, you may not both need to be present when you sell or trade the vehicle. When you need to sell the car but the co-borrower can't be there, you may be able to sign over the title without them, but you can't do it without their permission.