Overview
Some people simply do not have credit and others have poor credit. Both groups of people must find cosigners to get a loan. If you cosign a loan, you are giving your word that the primary applicant will make the payments to honor the contract. You will be responsible for the full amount of the loan if the primary borrower breaks the contract. You can contact the lender and attempt to take over the loan to save your credit. Many lenders will not allow you to become the primary borrower without following the proper protocol.

Step 1
Contact the lender. Show proof that your are the cosigner. Request the exact amount of the payoff of the original loan.

Step 2
Fill out an application with the bank. Ask for a loan that is the exact amount of the current payoff of the original loan.

Step 3
Receive the money from the new loan. Turn over the money immediately to the lender to pay off the original loan.

Step 4
Make payments as per the agreement outlined in the new loan. Stay current with all of your payments to protect your credit.

Step 5
Contact the primary borrower from the original loan. Notify him the original loan is paid off and the money is now owed to you instead of original lender.

Step 6
Take the documents from the original loan to the court clerk’s office to be presented as evidence. File a civil court complaint against the original borrower if he will not pay.

Step 7
Attend court and present evidence against the original borrower. Request a judgment against the original borrower.

Warnings
Fraud is a felony. Always be completely accurate and honest in all financial dealings to avoid civil fines and criminal prosecution.

Reference
Bankrate; Switching Co-Signer on a Car Loan; Terry Jackson; 2011

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Danny Donahue is a full time freelance writer/artist/voice talent. He has written over 1000 articles on subjects ranging from child development to drug addiction to home improvements. You can learn more about Danny’s past and current projects via email at revcozmo at aol dot com.