Easy Ways to Remove Yourself as a Co-signer on a Bond

If you have ever agreed to be a co-signer on a bond, you probably did not imagine the possibility of wanting to be removed from that responsibility in the future. However, life situations sometimes change, and it may be necessary for you to remove yourself as a co-signer on a bond. If this is your current scenario, worry not! In this article, you will learn how to remove yourself as a co-signer on a bond while minimizing negative consequences to your credit score and financial situation.

What is a co-signer on a bond?

A co-signer on a bond is an individual that takes joint responsibility with another person to ensure that the bond is paid off if the primary borrower defaults on their payments. The co-signer, in most cases, has a good or excellent credit score. This is because the bond issuer wants to reduce risk and ensure that the debt will be paid off.

So, what benefits and risks are associated with being a co-signer on a bond?

Benefits of being a co-signer on a bond

  • The primary borrower can access lower interest rates and better terms than they would without a co-signer
  • Co-signing can help loved ones achieve important goals, like buying a car or home, that they may not have qualified for on their own

Risks of being a co-signer on a bond

  • The co-signer has legal responsibility for the bond if the primary borrower fails to pay
  • If the primary borrower defaults, the co-signer’s credit history will be negatively affected
  • If the co-signer has to pay off the bond, they may be subject to collection calls and wage garnishment

Reasons to remove yourself as a co-signer on a bond

There are several reasons why you may want to remove yourself as a co-signer on a bond:

  • The primary borrower has improved their credit score enough to qualify for the bond on their own
  • You no longer have a personal or financial relationship with the primary borrower
  • You need to apply for a loan or bond for yourself, and being a co-signer puts your creditworthiness at risk

How to remove yourself as a co-signer on a bond

Removing yourself as a co-signer on a bond is not always easy, but it is possible. Here are some steps to help you navigate the process:

1. Contact the bond issuer

The first step is to contact the bond issuer and ask what their policy is for removing a co-signer from a bond. Some issuers will only allow you to be removed if the primary borrower refinances the bond in their name only. Others may require the primary borrower to provide proof of creditworthiness or a new co-signer.

2. Review the bond agreement

Next, review the bond agreement to see if it contains any provisions about removing a co-signer. The bond agreement outlines the terms and conditions of the bond, including the penalties for default and the responsibilities of the co-signer.

3. Negotiate with the primary borrower

If the bond issuer allows for co-signer removal, the next step is to negotiate with the primary borrower. Explain your reasons for wanting to be removed, and ask if they are willing and able to refinance the bond in their name only. If they are not, you may need to consider other options, such as transferring the bond to a new co-signer.

4. Consider the financial implications

Before you make a final decision to remove yourself as a co-signer, consider the financial implications. Removing yourself could negatively impact your credit score, especially if the primary borrower runs into financial issues. It is essential to weigh the costs and benefits of staying on the bond versus removing yourself.


Removing yourself as a co-signer on a bond can be a challenging process, but it is possible. By understanding the steps and potential risks involved, you can make an informed decision about whether it is in your best interest to remove yourself. Remember, always consult with a financial advisor or attorney to ensure that you are making the right decision for your unique situation.

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