One thing is to get a car loan. Another thing is to get a car loan that you can easily afford. If you have taken out a car loan and you find yourself struggling with the loan monthly payments because of your poor credit status, then refinancing the car loan is a way of regaining financial control, and even saving a little extra cash every month.
Nobody plans to have bad credit. However, certain situations like outstanding utility bills, credit card debts, or emergency medical expenses may lead to poor credit. But the good news is; you can still apply to refinance a car loan with bad credit. You will also a car loan refinancing even after bankruptcy or repossession at a lower interest rate and an affordable monthly payment.
Car Loans Refinance Application
The process of how to refinance a car loan with bad credit is fast and straightforward, irrespective of the credit you may have. No complex conditions like evaluation and appraisal as in home refinance.
Application for car loan refinancing is also free, and once you apply, your new lender will take care of your previous debts; paying off your outstanding loan and reclaiming the car title.
Do you desire improved auto loan terms and a better car loan experience, below is how to refinance your car loan with bad credit:
- Request for the loan payoff amount
The moment you realize your current car loan is a classic rip off on your finance and you think you deserve better through refinancing, simply approach your current car loan lender and request for the payoff amount. You can easily do this over the phone or online.
- Find out the current value of your car
Once you know the payoff amount, you also need to know how much your car is currently worth. If it is worth less than the payoff amount, which is a negative equity, then refinancing might just be out of the picture. Simply put, the value of your car will still determine your eligibility for auto loan refinancing. You can use Kelley Blue Book or Edmunds to find out your car’s present-day worth.
- Review your credit report for errors
Although refinancing is possible no matter your credit score, it is wise to check your credit again for any possible error that could affect your chances of refinancing your car loan at the best rate.
- Approach a trusted bad credit car loan lender and apply for auto loan refinancing
There are loads of car loan lenders that accept applications from people with bad credit. It is up to you to approach one that offers the best terms that suits your unique financial situation. Car Loans of America specializes in helping people with bad credit, and accepts applications from all credit types. At Car Loans of America, the application is free, quick, and hassle-free, with no hidden charges. You also get an immediate decision once you submit your application.
- How much can you save?
The auto loan refinance calculator gives you an idea of what you would get. You can also compare the present offer with the terms of the existing loan. The refinance calculator will also suggest how much you could be saving if you proceed with the auto loan refinancing.
- Make your decision
You may receive a couple of approvals with different terms. This is where you select the best option that suits you, sign the agreement documents, and enjoy the convenience of the new loan terms. And if you make the right choice, you will end up saving a little extra cash on the monthly payments each month.
Refinance an Auto Loan with Bad Credit near You
Your choice of the best auto loan refinancing company or the best lender to refinance your car loan depends on two key factors:
- Your specific financial situation, and
- Refinancing process of the auto loan company
Nevertheless, if you want to work with the best car loan lender near you, then Car Loans of America is the right choice.
Why You Should Apply with Car Loans of America
Car Loans of America has a rich experience in helping customers with bad credit refinance their car loans at a fair interest rate and better loan terms.
Application with us is free, fast, and secure. You can easily apply online in less than 5 minutes and get an instant decision.
Whether you apply online, physically, or over the phone, you will enjoy the services of our friendly customer services reps.