Can I Add a Co-Borrower to My Existing Car Loan?

Get Car Financing
Even with poor credit.

By

Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


, - November 19, 2019

If your credit or financial situation has unexpectedly changed and you’re wondering how you can fix it, you may want to consider adding a co-borrower to your existing car loan. Co-borrowers sign the loan documents with you, with their name getting listed on the title along with yours. You’re able to combine incomes when you add your spouse as a co-borrower, which could help you qualify for better loan terms. In order to add one, though, you need to refinance the loan.

What Is Refinancing?

To add a co-borrower to your existing car loan, you have to refinance it in order to get their name on the loan. Refinancing is when you replace your existing loan with a new one, hopefully with better terms.

When you refinance, you can lower the monthly payment either by extending the loan term or qualifying for a better interest rate. You can refinance with your current lender, but you’re going to want to work with a different lender most of the time.

In order to qualify for refinancing, you generally have to meet these five requirements:

  1. Your credit score needs to have improved since taking out the initial loan
  2. Your vehicle has to have equity
  3. You have to be current with your loan payments
  4. Your car has to meet the age and mileage restrictions of the new lender
  5. The loan amount has to be within the new lender's acceptable range

Make sure that you let the lender know ahead of time that you're adding a co-borrower to the new loan.

How Adding a Co-Borrower Can Help

Adding a co-borrower to an existing auto loan can help you out. If you put your spouse on the loan you can combine incomes and qualify for the new loan together, which could open the door to better loan terms than you'd be able to get on your own. This may allow you to save even more money over the remainder of the loan term.

In order for someone to be a co-borrower, in most cases, they must have a credit score that’s as least as good as yours. Once your co-borrower signs the loan papers, they have equal ownership of the vehicle.

If they decide they no longer want to be on the loan, they can’t just walk away – you must refinance again and remove them from the loan. Therefore, this isn't a situation to enter into lightly. Make sure to discuss the matter with your co-borrower before taking any action.

The Bottom Line

If you want to add a co-borrower to your existing auto loan, you usually can. Just make sure you, your car, and your co-borrower all qualify. If you need help with auto refinancing, our trusted partner can assist.

If you’re simply looking for a car loan, we can help with that. At CarsDirect, we work with a nationwide network of special finance dealers that have the lending resources you need for an auto loan even with bad credit, no credit, or bankruptcy.

Simply fill out our free car loan request form, and we’ll get started on the process of matching you to a local dealership right away.

Free Credit Score

Get your free credit score now! Get a copy of your most recent credit score.

Get Your Free Score

Auto Insurance

Get competitive quotes on insurance in your area.

Sell Your Car

We will buy any car, running or not, with or (in most cases) without the title.

Get My Price

Need a Car Loan?

It only takes a minute.

Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


Search New Cars by Loan Payment »

View estimated loan payments based on local rebates and financing offers.

Loan approval is not guaranteed and is subject to credit application and approval of the lender. Individual loan terms may vary. Use of this website constitutes acceptance of CarsDirect.com's Terms of Use, Disclaimer, Privacy Policy, and Cookie Policy.

Privacy Policy|Terms of Use|Cookie Policy|Disclaimer
COPYRIGHT 1999-2019 MH Sub I, LLC dba CarsDirect.com