How do I undo car cosign arrangemen
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I purchased a vehicle with my sister as the co-signer before I married my husband. Now that we are married and have joint accounts, we would like my auto loan to switch over to where he is the co-signer. How can we go about getting this done? Would this be a wise decision or does it not matter?
Glad to hear you and your husband are off and running on the financial front. Typically, when I am answering a question about co-signing it's not under such happy circumstances. I'm sure your sister will appreciate you taking the reigns on your auto loan. Co-signing is always a dangerous proposition since both parties are responsible for the obligation and see it reflected on their credit report. I've seen more than a few situations where the party that needed the co-signer left the other party holding the bag--to be left with the choice of paying a bill they had not accounted for or taking a big ding on their credit report.
All that being said, you'll just need to refinance the vehicle into your name (or jointly with your husband) to remove your sister from the loan. So contact your lender or another one and check out your options. I know that USAA refinances automobile loans, so that's a good place to start. Of course, there will be an application process and you and your husband will have to qualify for the new loan. Once the refinace is done, your sister will be removed and you can continue to build a solid credit history by making on time payments, every time. The good news is that interest rates remain very low and hopefully you'll be able to secure a loan with a low interest rate and not extend your repayment period. Good luck!