Your best option to get your name off a large cosigned loan is to have the person who's using the money refinance the loan without your name on the new loan. Another option is to help the borrower improve their credit history. You can ask the person using the money to make extra payments to pay off the loan faster.
No, it doesn't hurt your credit, but having one can get credit history in your name because most times without a cosigner, you're not approved for an apartment or loan.
You're generally able to remove yourself as an authorized user by calling the credit card issuer and requesting the change.
“However, if you have a credit account that's two years old and an authorized user account that's eight years old, removing the authorized user account could hurt your credit score.”
Unlike a credit card with an authorized user, you generally cannot simply remove one name from a joint credit card. Most issuers will require you to close the account.
If there isn't a current balance on the account, some credit card issuers may be willing to remove your name, provided the original borrower has decent credit. You or the original borrower can call and ask if this is an option.
If you discover the primary cardholder isn't making on-time bill payments, you may decide that cutting ties is the best way to go. Call the issuer and ask to have your name removed as an authorized user. It should take only a few days, and the issuer will cease making reports under your name to credit bureaus.
Co-signing a credit card for a friend or family member is a big leap to take and one that could hurt your credit score if the person you sign with doesn't pay the card payments on time.
To get a co-signer release you will first need to contact your lender. After contacting them, you can request the release — if the lender offers it. This is just paperwork that removes the co-signer from the loan and places you, the primary borrower, as the sole borrower on the loan.
The quick answer is yes, but it's not as easy as you might think. "Lenders are generally averse to removing a co-signer," says Dean Kaplan, president of The Kaplan Group, a commercial debt collection agency. That's because by removing your name from the loan, the lender's risk goes up.
Working with a cosigner can help you qualify for a loan you otherwise couldn't get, but if you don't hold up your end of the deal, the cosigner can take you to court.
On the other hand, if the account in question has had frequent late payments or carries a high credit utilization, removing an authorized user (or removing yourself as an authorized user) could give a boost to your credit scores.
No, being an authorized user generally does not obligate you to pay the debt.
Schulz also notes that when primary cardholders remove an authorized user on their card, the primary cardholder's credit history will no longer influence the authorized user's credit history.
If you want to be removed from the account, you'll have to call the credit card provider and be prepared to negotiate. If the other account holder would qualify for the card on their own, the credit card company may approve your request. If not, your only option is to pay off any outstanding debt and close the account.
Generally, both people on a joint account will have to contact the credit card company and cancel it. From there, there may be a way for one person to put the card only in their name.
Yes, you can sue the person you co-signed for if they don't make the payments they promised to make. You may be able to get a judgment against them in court, but it could be hard to collect that money since they didn't pay the debt in the first place.
Removing the authorized user will not harm the primary cardholder's credit, says Ethan Dornhelm, vice president of FICO scores and predictive analytics. "The fact that you have authorized users on your credit card is not information that is captured in your credit report," he says.
If you plan to remove yourself from a joint bank account, you need to let the other person know. In fact, banks that allow you to remove your name from a joint account without closing it may require written permission from the other account holder.
Typically, credit card companies need consent from both parties to close a joint credit card. Additionally, they usually require the balance to be paid in full.