Should You Refinance Your Bad Credit Car Loan?
Did you ever think about refinancing an auto loan? Especially if you have a high interest vehicle loan then refinancing could be the way to go. The trick is, how can you tell if this the way to go in your particular case? You need to research to find out the best way to turn in order to get better long term results.
The basic premise is this. At one time you only qualified for a bad credit car loan, with a very high interest rate and high monthly payments. Since then your credit improved and you might be able to find a loan at a lower rate. This is an opportunity to lower those huge monthly payments for good.
So, how does one figure out if they might be able to refinance with bad credit on a car loan? Well, have you owned the vehicle for more than twelve months? Also, Have all of the monthly payments been made when they were due for the full amount stipulated ? At this point it would only be a bonus if your car was worth more than you owe, however this is very unlikely. Having any of these conditions present means it is worth looking into this further.
The next step would be to make sure you understand the condition of your credit rating. After researching both of these you are ready to move ahead with the actual lenders.
You should also try to get an idea of the fair market value of the car or truck.This doesn't require an appraisal or mechanic. Try researching at the library or online. You will discover that there are publications which list market values for all cars and trucks in North America. Bear in mind that it is not worth as much as when you bought it, sometimes quite a bit less.
Finally you are ready to approach banks and lenders. Check first with the holders of your current loan to see if they will refinance your bad credit loan, but you might also be able to get a better rate at a different lender. That is why it won't hurt to get a second or third opinion. I know it is time consuming but you won't get the best deals unless you compare a few of your options.
I know some of the work involved is time consuming and stressful. The good news is it won't cost you much to get some answers. It will be worth it if you can save hundreds of dollars on interest and lower your payments at the same time!
The basic premise is this. At one time you only qualified for a bad credit car loan, with a very high interest rate and high monthly payments. Since then your credit improved and you might be able to find a loan at a lower rate. This is an opportunity to lower those huge monthly payments for good.
So, how does one figure out if they might be able to refinance with bad credit on a car loan? Well, have you owned the vehicle for more than twelve months? Also, Have all of the monthly payments been made when they were due for the full amount stipulated ? At this point it would only be a bonus if your car was worth more than you owe, however this is very unlikely. Having any of these conditions present means it is worth looking into this further.
The next step would be to make sure you understand the condition of your credit rating. After researching both of these you are ready to move ahead with the actual lenders.
You should also try to get an idea of the fair market value of the car or truck.This doesn't require an appraisal or mechanic. Try researching at the library or online. You will discover that there are publications which list market values for all cars and trucks in North America. Bear in mind that it is not worth as much as when you bought it, sometimes quite a bit less.
Finally you are ready to approach banks and lenders. Check first with the holders of your current loan to see if they will refinance your bad credit loan, but you might also be able to get a better rate at a different lender. That is why it won't hurt to get a second or third opinion. I know it is time consuming but you won't get the best deals unless you compare a few of your options.
I know some of the work involved is time consuming and stressful. The good news is it won't cost you much to get some answers. It will be worth it if you can save hundreds of dollars on interest and lower your payments at the same time!
About the Author:
It is no wonder with the recession that so many people have to refinance with bad credit. I hope this article has given you insights on how to refinance a car with bad credit
posted by Debt Consolidation Loan at
5:51 AM
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