refinancing a car with bad credit

Refinancing a car with bad credit

Where To Seek For Bad Credit Auto Refinance Loan?

Bad credit refinance auto loan is a tough job indeed. But still borrowers can do it with the right type of lender. There are many advantages attached to refinancing auto loan. It’s really worth as it saves a lot of money and the borrower can easily enjoy low rate auto loans. Various companies in the market similar to Refinanceitt provide services for bad credit auto loan and help the needy people to get low rate on their cars.

How are poor credit auto refinance loan helpful?

Poor credit auto refinance surely helps the borrower to improve his credit rating gradually. The borrower can initiate by hunting for the best rates by controlling his payments. Even with bad credit, no one can stop him from availing refinance auto loan; he just needs to have the determination. No sooner the borrower decides on refinancing his auto loan then he should start making regular payments, this would surely help him to secure a low rate loan deal.

To avail refinance car loan, the only requirement is that the amount owe should be less than the car value or else the chances of financing would be much lower. The borrower can check the amount he owes by calling the lender of the institute or looking into the loan documents. The borrower should also be aware of his current loan rates so that he would get to know what he should look for.

Borrower’s own lending organization might not be the best place to avail low rate auto refinance loan because they wants to keep their borrowers at their current rates only and thus make their profit. While other organizations are in search of business and thus they are ready to offer lower rates comparatively.

The borrower can also search online for best car refinance rates. There are many online lenders that are ready to offer affordable refinance rates thus one should contact them. Online lenders also process faster and they are ready to help people regardless of their credit score thus its best to avail loan from them.

Auto Refinance Bad Credit - You Can Auto Refinance with Bad Credit

Just about anyone can buy a car and get financed, regardless of their credit history. Dealers can work wonders when it comes to getting people financing to purchase a new or used car. Unfortunately, those financing deals for people with bad credit carry very high interest rates that make payments higher than they need to be. Fast credit independent dealers have overpriced cars and overpriced credit.

If you were caught up in buyer’s fever and signed onto a bad credit high interest loan, it is time to do a bad credit car refinance loan. Interest rates for bad credit auto refinancing from some lenders is still high but not astronomical. Just because you have bad credit it does not mean you cannot find a better interest rate to refinance your bad credit auto loan.

The best way to auto refinance with a bad credit history is to check with your local credit union or bank first. These are the most legitimate lenders out there and they will have the best rates. Car dealers and other lenders have middlemen involved and they may also jack up the price of a vehicle way over what it is worth. Other lenders feature “no credit check” and operate similar to cash advance stores, except they put a lien on the car for security collateral interest.

As long as the car is worth more than the loan you need, there is no credit check but interest rates will be higher than those from other financial institutions. This is especially true if the amount you want to borrow is lower than the worth of the car; in that case you are getting an equity loan.

Average used car loans today, according to, are the following for persons with good credit:

• 36 month 5.4

They offer a 1% discount if you set up automatic bank deductions for payments and there are no application fees. Rates vary somewhat by state; the above are quoted for Oklahoma City, OK.

Compare the above Oklahoma rates to these national rates for regular loans used to purchase used cars:

• 48 month 6.4

If you went to a “buy here, pay here” used car dealer for your original loan, you could be paying up to interest on that loan due to your bad credit history. This is definitely a loan you want to refinance and get rid of.

For an auto bad credit refinance loan, hurry to a credit union or bank and talk with them. Do not go online and ask for “quotes9rdquo; or your credit record will be hit with numerous inquiries that will make it even worse.

Another good idea is to pull your credit records from to see what is in them and make any needed corrections. Even if you have a sky high interest rate on your current loan, by the time you have made about six monthly payments, you should be in a good position to get better bad credit auto refinancing and reduce those high rates to something more manageable.

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Financing a Car with Bad Credit SC

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Refinancing a car with bad credit

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refinancing a car with bad credit

For many Americans, a reliable means of transportation is a necessity and many Americans have to get an auto loan in order to be able to afford a car.

But what if your financial situation changes during the life of your auto loan so you can't afford the original payment - and you don't have a good credit score?

What score do I need to qualify for refinancing?

According to Elle Kaplan, CEO of wealth management company LexION Capital, Every bank has different qualifications, so there isn't a set-in-stone credit score that will allow you to refinance.

The importance of a good credit score is that it typically gives you access to better loan terms.

If your credit score isn't great, you may still be able to refinance, though it could be harder to find options and you'll want to take a close look to see what makes the most sense for you.

Matt Jones, senior editor at automotive website, says, Often, a lender will be happy to see consistent, on-time car payments. So even if a person's score hasn't improved much, a buyer may be able to refinance a loan to a lower rate just based on a good solid recent history of on-time payments.

Other important factors to consider when refinancing include:

  • If your car is an older model
  • If you owe more on the car than it's worth.
  • If your car has clocked over 100,000 miles.

These factors will likely reduce the likelihood of finding a refinance or better rates, as the only real collateral (which is security pledged for repayment of the loan) is the car itself.

Ready to refinance? Here are some key steps to take:

This may seem counterintuitive, but according to Carroll Lachnit, features editor for, calling your current lender should be one of the first things you do if you can't make your payment. Contact the bank or finance company that holds the car loan as soon as you know there's an issue with timely payment.

Lachnit adds that many people simply don't realize it's often best to work with your lender. This puts all the cards on the table and allows the lender to find suitable options for you, such as lengthening the term of the loan, which could reduce individual payments but may cost you more in the long term.

While not desirable, having a longer loan may help you stay on top of your monthly bills.

2. Shop around to find the best options.

There are several options you can consider when refinancing a car:

  • Brick and mortar banks. Even if you have a credit score that needs work, banks may work with you if you have an established history with them.
  • Credit unions. Like banks, credit unions may be more conservative in their lending. However, if you're a member, they might offer you a better rate than a bank.
  • Peer-to-peer (P2P) lending. P2P loans are the new kid on the lending block. P2P lending is the practice of connecting people who want loans with people who have money to lend. P2P sites like Lending Club and Prosper, Credit Karma marketing partners, may allow you to refinance your auto loan when securing refinancing from a bank isn't an option.

3. Take steps to improve your credit score.

If your score isn't where you'd like it to be, Kaplan offers a few simple ways that may help move your credit in the right direction:

  • Consider putting a small recurring payment, like a Netflix subscription, and pay the balance off in full each month to help establish a positive borrowing history.
  • Consider becoming an authorized user on someone else's credit card. You may benefit if the account has a long history and the person has a positive on-time payment history; however, you may not want to get your own copy of the card so you can avoid the temptation to overspend.

Beyond the tips from Kaplan, paying your bills in a timely manner and lowering your credit utilization rate can help boost your score over time, which may benefit you in future lending situations.

Refinancing an auto loan with bad credit can be a challenge, but you do have options. Continue to make your monthly payments and, if you can't make the payments, be transparent with your current lender as they may be able to help.

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Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.

10 Steps to buying a car, refinancing, and auto loans with bad credit

You’ve navigated to a great place.

The Santander Consumer USA blog is a rich source of information for the worlds of automobiles and auto finance, and keeps readers coming back for more.

There’s another that’s worth a visit too, and we’ll show you the way.

RoadLoans is the direct-lending platform of Santander Consumer USA, and its blog site offers more articles to help during the auto financing process, to keep you up to date with auto news and trends, and to entertain.

Here are some of those offerings:

Buying a car may seem like a long haul, but here are 10 steps to shorten the process and make it a great experience.

Starting with how to research vehicles, we’ll walk you through the process, taking in car loan options, add-ons, trade-ins and private sales on the way to finding the right dealer and the best price.

If you’re in the market for a new or used vehicle, or you just want to become a savvier shopper in future, read our 10 steps to buying a car.

Refinancing a car with bad credit

If you’re new to auto refinancing, take a few minutes to understand how it works and how it might benefit you.

Getting a new loan with new terms from another lender, who pays off your existing note, has several potential advantages – like saving money with a lower annual percentage rate, or getting smaller monthly payments to fit your budget.

Whatever your goals may be, read our article to learn more about the nuts and bolts of refinancing.

How do you make the best of a bad credit* situation when you need to buy a car?

Plenty of consumers have bad credit, and many still qualify for car loans. But not everyone approaches car buying the right way.

If your credit is poor and you’re looking for your next vehicle, our article will set you in the right direction.

For better or worse, first cars are unforgettable.

Not just as a vehicle to newfound freedom, but quite often for their characterful idiosyncrasies and foibles that are lovingly overlooked.

Take Tara Stein’s Chevy TrailBlazer. Despite a healthy thirst for engine oil as well as gas, it could do no wrong in her eyes, and was soon packed with friends front and back.

Read her first-car recollections: There’s plenty of room for a trip down memory lane.