Did you buy a vehicle from a buy here pay here lot? Have you been paying on it for at least 6 months and have never been late? If so, then you can probably refinance your vehicle for a lower interest rate and a lower payment. This is a good thing and most people do not even think to do this. Here is how you can refinance auto loan bad credit very easily.
First, you will be looking for a non conventional lender, but you do not want to rule out your bank just yet either. You have multiple options and you can choose from a handful of different lenders that are out there. You will be able to get the loan you need, but be prepared to pay a second down payment of between $ 500 and $ 1,000 depending on the lender.
Second, you will want to negotiate a pay off with the buy here pay here lot and get it in writing good until your next payment. You can usually get them to settle for less than what you really owe them by a couple thousand dollars and this will help you get the loan you need and might eliminate the need for the down payment on your auto loan refinance.
Third, the lender is not going to be too concerned about your credit because you have been paying on your vehicle and have been on time with it the entire time. This looks good and helps your chances. You should know that if you do not currently have full coverage insurance your new lender will require it and it is also a good idea to get some type of third party warranty on the vehicle for your own protection.
Last, you can try your bank first, especially if you have a retirement account with them or one that you are willing to put up as collateral. Your bank will offer the lowest auto loan refinance bad credit interest rate out there, but if they turn you down you do have other options. There are lenders like American General and Bar None that will be happy to work with you.
Refinance Auto Loan – Can You Get A Refinance Auto Loan?
Can you get a refinance auto loan? Is it possible to get the money you need from refinancing your auto loan? Yes you can do this and get some money to help you out. If your car, truck, suv, motorcycle, or other vehicle is paid off it will work even better for you because you will be able to get full value with your loan. Here is how it works.
First, you will need to know what your credit is. Get your free credit report and make sure you know your score. If you have a 600 or better, then you can probably go to your bank and refinance your car, truck, or other vehicle at a lower rate. This can save you money and if there is some value there you can take that value out as cash to help you payoff something else.
If your credit score is lower than 600, then you will probably need to see a title loan specialist. These are usually pawn shops and other places that are willing to make higher risk loans that will help you get the money you need. They will hold the title as you make payments and once you pay off the loan you will get your title back.
Second, you need to know what you are getting into. Do not expect to get much more than what your car is worth if you do not have good credit. You might not even get the full value if you do not have good credit. If you have good credit your bank will probably be willing to loan you a little more than what your vehicle is worth depending on what you need the refinance auto loan for.