How to Remove Your Name From a Co-Signed Loan

When you co-sign a loan, you tell the lending institution that you are willing to make payments even if the other person doesn't. Shutterstock

You wanted to help your loved one, or maybe a friend needed some help buying their car. But now you realize that wasn’t a good idea, and your good credit is taking a hit because they’re not making the payments on time, or at all.

There are many reasons to co-sign a loan, and most of the time nothing goes wrong. But for those times that do go wrong, there are some ways to remove your name. But be warned: this is not an easy thing to accomplish, is often is not possible, or will cost you.

Co-Signing a Loan

When you co-sign a loan, you tell the lending institution that you are willing to make payments even if the other person doesn’t.