Can a person who is financing a car change their co-signer if they have one to their business.?

Question

I have an uncle who is a co-signer for a friend of his who did not have good credit. His friend purchased the car and used my uncle as the co-signer, but he wants to remove my uncle as a co-signer and the car under his business. It may seem weird, but is their anyway that his business could be the co-signer or have any other way for his business to take over the car? Money is still owed on the car and my uncle wants to remove himself from the debt.

Answer 1

Nope, if he wants to remove the co-signer he will need to get a new loan for the car. Once he gets a new loan he can put it in the business name if he wants but they will still basic it on his personal credit. It is best to just stay the way it is right now until his credit improves.

Answer 2

Only way to to this is for the person to apply for a loan along with his company (if that's even possible) and legally assume the loan under a new loan with him and the company as buyers.     I'd seriously doubt the loan company would even consider just marking off your uncle and adding this guy's company as cosigner.   Companies don't sign loans.   People do.    Not sure why he thinks if his credit is bad that his companies credit is any better.

RoyG

KC

Answer 3

NO......... the only way unk can get out of this is if the lender will accept another co-signer ....this happens once in a lifetime...it will be nearly impossible for any lender to let anyone change co-signers ....but why cant your friend borrow against the business and pay the car off...and get your unk out of the middle and use the car as collateral to get a personal loan for some extra cash....if his business is good enough to use as a first signer...this will work also...

Answer 4

A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own.

Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.

Good luck,

Ilya Bodner

Small Business

Owner Initial Underwriting Group

Answer 5

The loan would have to be refinanced. The business may be able to be the co-signor, that is entirely up to the lender, it has nothing to do with the DMV, whatever lienholder you want is what will be done. Your uncle has no other way out of the loan, the lender must agree to any changes in the contract.