If you obtained your car with the help of a cosigner, you aren’t alone. Many people choose to apply for a car loan with cosigners to improve their chance of being approved. Cosigners can make it easier to qualify for auto loans or to qualify for better rates. However, when the vehicle is paid off, they can remain registered owners.

A cosigner can feel like an obstacle if you need to get a title loan. After all, you can’t make any changes to the ownership of the title without their approval. Does that mean that you can’t get any loan, especially a title loan, on the car’s equity?

The truth is that a cosigner doesn’t have to be an obstacle. Get answers to all of your questions about title loans with a cosigner right here.Table of Contents1. Can I apply for a title loan if a cosigner helped me buy my car?
2. What are my cosigners’ rights to the vehicle?
3. Can I remove a cosigner from my registration?
4. Can my cosigner sign the title loan with me?

Can I apply for a title loan if a cosigner helped me buy my car?

Yes, you can apply for a title loan with a cosigned car. However, there are steps you have to follow and laws that you must observe.

In order to apply for a loan, you will need to do one of the following.

  • Remove the other owner from the vehicle registration
  • Add your consigner to the title loan with you

As long as you have a good relationship with your consigner, either of these options are possible. Before you explore them, it’s important to understand your cosigners’ rights to the vehicle.

What are my cosigner’s rights to the vehicle?

The cosigner is considered an equal owner of the car and possesses the same rights to its use as you do. It doesn’t matter if you made the complete down payment by yourself, because co-ownership isn’t about percentages.

You also cannot “buy out” the cosigner and remove them from the registration without their consent. However, when you do have the co-owner’s consent, either removing them or applying with them becomes possible under certain conditions.

Can I remove a cosigner from my registration?

Removing a cosigner from your registration is possible but may be tricky.

You will need the consent of the co-owner. They may expect a cash payment to compensate them for any value of the vehicle that they’re surrendering.

If they do agree, you just need to go to your county clerk’s office and request a transfer of title. This may take several days, so make sure that you plan accordingly. Once the title is completely in your name, you will be responsible for paying off any liens before you can apply for a car title loan.

Can my cosigner sign the title loan with me?

Yes. In fact, that’s often the simplest option. All that it requires is that your cosigner join you during the car title loan application process and complete the application with you. First, review some quick answers to questions like, “how do title loans work?” Once you understand that, you’re ready for the next step: Completing the title loan application.

Title loans are available for most types of vehicles. You can even get a title loan on a salvage vehicle.

You and your cosigner should be aware that you are both responsible for the loan upon the signing of the car title loan. If you fail to make payments, your cosigner may be pursued for the remaining amount. If your co-owner already cosigned for you once, they are already aware of this risk and the legal responsibility.