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Home >> Lending >> Personal
Removing Name as Cosigner
I cosigned for my brother to help him get credit for a loan. How do I remove my name as cosigner after he pays the loan?
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 Your liability as co-signer on that loan goes away once the loan is paid off, assuming that you're talking about what's called a "closed end" loan. That's a loan that involves a single extension of credit followed by a series of (usually) equal payments that pay the loan off.
If you co-signed on open-end credit (a credit line that revolves, like a home equity line of credit or a credit card account), you'll need to do one of two things. First, if both you and your brother agree, you can ask to have the co-signed account closed so that further activity is prohibited, or if your brother wants to keep the account, you and he can ask the creditor to have your name removed from the account and release you from further liability. In either case, get the action confirmed by the creditor in writing.
Your name won't be removed from either account retroactively. That is, the payment record on the account has been shared with credit bureaus, and good, bad, or indifferent, that record stands until the passage of time causes it to fade away.
Published on BankingQuestions.com 12/18/07
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