Refinance Auto Loan Bad Credit
If you’ve been in your current auto loan for at least 12 months, a refinance auto loan bad credit option could be good for you — especially if your interest rates, payments or terms are undesirable to you.
If you have been consistent in making on-time payments in the past 12 months, then you’re a definitely are a good candidate because this looks very attractive to lenders. However, even if your payment history has not been perfect over the past year, you may still qualify for auto loan refinance opportunities.
The best thing to do is to shop around and weigh your options. A Refinance auto loan bad credit lender is not the easiest to find, but once you do find a good one – it can very well save you a great deal of money over your current loan.
One thing’s for sure, you don’t need to pay any more money than you have to for a vehicle. Especially being that it depreciates in value practically once it’s driven off the lot.
Therefore, it is important that you investigate about refinancing you auto loan so that you put that extra money that you’re paying out in high payments & interest every month into your own pockets!
Refinance Car Loan Bad Credit Benefits
4 Reasons to do an Auto Loan Refinance…
1. It can reduce your loan interest and payments
2. It can alter the terms (lengthen or shorten your loan)
3. Your old loan is paid-in-full and replaced with new more favorable loan
4. It can add-up to Thousands in savings over the life of your loan
It is very crucial that you get a copy of your credit reports and scores from all 3 credit bureaus: Experian, Equifax and TransUnion. You will need this when contacting and negotiating with potential lenders. Its best that you pull your credit reports and scores yourself prior to contacting lenders.
This way you can eliminate any guesswork concerning your exact financial profile. Also with this information in hand you won’t have to wonder if a loan officer is being straight with you concerning the loan bracket you fall into — which will greatly affect your new loan rates and payments.
It is good to know the value of your car. Make sure the loan you get is not greater than the car value. It is not a good feeling to be upside down in a loan, owing more than what the auto is really worth. Kelly Blue Book and Edmunds are two good resources to check your car value.
Typically lenders will not want to refinance for less than $7000 range. Therefore, make sure your auto is at least worth this amount. However, it is possible that some lenders will still work with you if you auto value falls below this level. It’s doesn’t hurt to check and see.
A down payment may be required depending on the lender. Be prepared with a minimum of $500 to $1000 just to be on the safe side.
Read and Review Everything
Make sure you thoroughly understand all aspects of your refinance auto loan bad credit opportunity prior to sealing the deal. Make sure it is in fact more favorable than your current loan. It defeats the whole purpose if it’s not.
Also be sure to find out if the new loan has a prepayment penalty i.e. a penalty charge for paying off your loan early. You definitely want to avoid this if at all possible. Regardless of bad credit, poor credit or past bankruptcy, a refinance auto loan bad credit is possible.