Imagine this: You decide to take a look at your credit report, perhaps because you’re planning a big purchase or you just want to check in on your financial health. You scroll through the entries and suddenly, you notice something alarming – a loan you never took out. It’s as if a ghost borrowed money in your name.
Sadly, this scenario is far from supernatural. It’s a form of identity theft that can have a profound impact on your credit history, your financial security, and your peace of mind. When someone takes out a loan in your name, it means that an identity thief has gotten hold of your personal details and used them to borrow money. If they don’t pay back the loan, and they often don’t, you’re the one whose credit score takes the hit.
At Bell Law, LLC, we’ve seen the havoc that identity theft can wreak, and we’re here to help. Our team is skilled at dealing with the legal and financial implications of loan fraud, and we’ll fight tirelessly to set things right. Don’t let a thief’s actions ruin your credit history.
Give us a call at 816-281-0649 for a free consultation today. Together, we’ll take the steps needed to reclaim your financial identity and restore your peace of mind.
Getting a loan under someone else’s name is sometimes necessary, but can also be risky if not done properly. This comprehensive guide will walk you through the legal ways to get a loan in another person’s name, and things to keep in mind before doing so.
When You Might Need a Loan in Someone Else’s Name
There are a few scenarios where getting a loan in someone else’s name makes sense:
-
You have bad credit, they have good credit: If your credit score is poor, you likely won’t qualify for the best loan rates on your own. Adding someone with good credit as a cosigner can help you get approved and get lower interest rates.
-
You don’t meet income requirements: Lenders usually require you to have enough income to comfortably make the monthly payments. A cosigner with higher income may help you qualify.
-
You’re helping out a family member: You may want to help a child, parent, or spouse by being the primary applicant on a loan they can’t get on their own.
-
You’re buying property together Unmarried couples often run into issues getting approved together for a mortgage Putting the loan in the name of the partner with better credit is one solution,
-
Starting a business If you’re starting a business, you may need to use your personal credit to get financing until the business establishes its own credit
Refinancing an Auto Loan into Someone Else’s Name
Refinancing a car loan is one of the most common ways people try to get a loan in someone else’s name. However, the lender usually won’t allow you to remove your name from the loan contract.
There are a couple complex workarounds, but easier options include:
-
Refinancing with a cosigner Adds another person to share responsibility, but doesn’t remove you from the loan. Can help get better rates.
-
Selling the car: The buyer needs to get approved for their own financing to pay off your loan balance and transfer ownership.
-
Trading in for a cheaper car: Downsizing the vehicle may allow for more affordable monthly payments.
Overall, a private sale followed by the buyer getting their own financing is the simplest way to effectively transfer the loan to someone else through a car sale.
Using Credit Cards in Someone Else’s Name
Getting a credit card in someone else’s name is convenient, but comes with risks. Most credit card companies explicitly forbid allowing anyone else to use your card.
Some legal ways spouses and family members can share credit cards include:
-
Add them as an authorized user: They get a card in their name linked to your account. Helps build their credit.
-
Make them a joint account holder: Both people are equally responsible for the account. Requires agreement from the card issuer.
-
Give them power of attorney: Allows them to make charges in your name. Requires a legal power of attorney document.
Letting friends or other non-relatives use your credit card or number is not recommended, and violates card agreements. Use prepaid debit cards or peer-to-peer payments apps to share funds instead.
Getting a Personal Loan in Someone Else’s Name
Personal loans allow you to borrow money for any purpose. They are one of the easiest loan types to get in another person’s name legally through cosigning. Here are a few tips:
-
Shop lenders that allow cosigned personal loans. Online lenders tend to be most flexible.
-
The primary borrower handles the application and loan details. The cosigner agrees to be equally responsible for repayment.
-
Add the cosigner after getting declined on your own to potentially get approved and improve your rate.
-
Choose a short repayment term since the cosigner is taking on long-term risk.
Personal loans in joint names may also be possible if you share finances with a spouse or partner. Talk to the lender about options for applying together.
Mortgage Loans in Someone Else’s Name
There are a few ways to buy a home using someone else’s finances or credit:
-
Gift funds for the down payment: Family can legally gift you money to qualify. No cosigning required.
-
Co-sign the mortgage: Similar to other loans, a cosigner agrees to be responsible if you can’t pay.
-
Get a non-occupying co-borrower: They have equal ownership stake but don’t live in the home. Improves debt-to-income ratio.
-
Put the loan only in a spouse’s name: If unmarried, both names must be on title but only one needs to be on the mortgage.
Talk to mortgage lenders to structure the loan appropriately for your situation. All borrowers need to provide income and asset documentation.
Is It Possible to Transfer a Loan to Someone Else?
For most loans, it’s not possible to simply transfer it to another person. Personal, auto, and mortgage loans require the original borrower to stay on the contract.
A few potential options to effectively remove your name include:
-
Pay off the loan balance in full and close the account.
-
Refinance the loan with only the other person applying.
-
Sell the property or asset – buyer needs their own financing.
-
Make the loan payments on time until the term ends.
Getting approved for refinancing alone can be challenging. Work with the lender to understand any options to legally shift responsibility to someone else.
Dos and Don’ts of Getting a Loan in Someone Else’s Name
-
DO be upfront about why you need someone else’s name on the application.
-
DO make sure the primary borrower is aware and approves.
-
DO consult the lender to ensure you structure the application properly.
-
DON’T allow unauthorized users on credit cards or share account numbers.
-
DON’T misrepresent your relationship just to get approved together.
-
DON’T take out loans for non-family members other than legitimate business purposes.
What to Watch Out For
While legal in many cases, some risks of getting a loan in someone else’s name include:
-
The primary borrower’s credit gets impacted, not yours. Late payments hurt their score.
-
Disputes can arise over who owes what, especially if unmarried.
-
Income and asset documentation must be accurate for all applicants.
-
Change in relationship status may require refinancing and fees.
-
Cosigners remain obligated until the loan is satisfied or refinanced.
Only proceed if you and the other applicant fully discuss responsibilities, risks, and have trust in the relationship. Consider legal agreements on repayment details if needed.
The Bottom Line
Getting approved for a loan under another person’s name or credit is possible in many cases, with the most common being joint applications with a family member or spouse. Work closely with lenders, follow credit card agreements, and take steps to protect both parties. While it can help you get approved, proceed cautiously before pursuing loans in someone else’s name.
Set Up Fraud Alerts and Credit Monitoring
Consider setting up fraud alerts with the three credit reporting agencies. This means they’ll notify you when someone tries to apply for credit in your name. Additionally, credit monitoring services can constantly monitor your credit reports, promptly alerting you to any suspicious activities.
Swift Action: What to Do if Someone Takes Out a Loan in Your Name
Discovering that a loan has been taken out in your name can feel overwhelming, but swift action can limit the damage. Here’s what you need to do:
- Call Bell Law, LLC, For a Free Consultation – Speak to an attorney as soon as possible. Our law firm offers a free consultation so you can gain clarity on your next steps.
- Contact the Lender – Reach out to the lender who issued the loan and inform them of the situation. Ask them for all details pertaining to the loan, as this information can be helpful when you report the fraud to the police and the credit bureaus.
- File a Police Report – Contact your local police department to report the identity theft. A police report can provide the necessary proof of the crime when you’re dealing with creditors, debt collectors, and credit bureaus.
- Report Fraud to the Credit Bureaus and FTC – Notify the three major credit reporting agencies about the fraudulent loan and ask them to place a fraud alert on your credit reports. This alert notifies lenders to take extra precautions before granting credit in your name. Also, file an identity theft report with the Federal Trade Commission (FTC).
How to get a loan in someone elses name?
How do you get a car loan into someone else’s name?
The simplest way to get an auto loan into someone else’s name is to sell the vehicle to them. But be aware that selling a car when you still have a loan has its drawbacks. Unless the interested buyer has cash for the purchase, they’ll need a new loan to pay off what you owe. Here’s what the process could look like: Shop around.
Can you refinance a car in someone else’s name?
Getting out of a car loan can be tricky. It’s nearly impossible to get your name removed from a car loan, since you agreed to take full legal responsibility when you signed the loan contract. So if you’re wondering how to refinance a car in someone else’s name, the truth is it’s not easy.
Can I transfer my car loan to someone else?
Transferring your car loan to someone else or having someone else refinance your car loan usually isn’t a viable option. However, it’s important to understand the refinancing process and consider the potential benefits and drawbacks of including a co-signer or building credit first before re-applying for a new loan.
Can someone else refinance a car loan?
Refinancing a car loan can help save money by getting you a lower interest rate, reducing your monthly payments, or shortening your loan term. However, not everyone is eligible for car loan refinancing, and not everyone can refinance their car loan themselves. So the question is, can someone else refinance your car loan on your behalf?