#auto refinance bad credit
Refinancing a Car Loan When You Bad Credit
If you need to refinance a car loan, bad credit can seriously affect your chances of obtaining the best rates. When you find someone to refinance your loan, you will discover that you might be able to decrease the loan term or the interest rate to make handling the loan easier.
This will help you make the payments on time and improve your credit as a whole.
Find a Company to Help You
Looking online for a company with a good reputation is the best way to find a suitor to help with your refinancing requirements. If you happen to know a local company, you can contact them for a quote on a bad credit car loan. If you look online, make sure the company has the proper accreditations and are part of the Better Business Bureau for loan protection.
Start by searching for a company where the application process is easy, and the auto loan interest rate is better. It is smart to stay away from prime lenders. These places will usually only work with people who have excellent credit. Do some research and look into going with sub-prime or high-risk lenders. These professionals specialize in dealing with bad credit refinancing.
Most sites have an apply now button where you input your personal details and the amount of money requested. After a credit check, the company will subsequently approve or deny you. If your application is successful, they will advise you of the next steps and anything you need to provide in terms of written proof. Also make sure that when you fill out a form online, that you are redirected to a secure server before you enter your details. Secure servers are usually indicated by the address bar turning a light shade of green and the HTTPS:// will be displayed instead of the usual HTTP://.
If you once had good credit and your circumstances have forced you into hard times, you can always try your bank or local credit union. Banks may be able to help you before you try outside sources. Even with bad credit, some banks will still offer a loan to a well-known customer who has previously been exemplary in paying their bills.
Call the lender and find out what the loan balance is. After you have done that, you should figure out what your car is worth. This is very important with bad credit because you need to have a vehicle that is worth more than what you owe on it. Kelley Blue Book is a good resource for this.
Secure Your Loan
You may need to secure your loan on your home. If you are a mortgage holder or homeowner, you may be better advised to get a bad credit loan from a company who secure the loan on your home. You will be offered a better rate of interest on your car loan refinance and of course, you will need to keep the payments because they will put a lien on your home until it is paid it full.
Send Your Application
Once your application is mailed to you for signing, you need to make sure you have all the necessary information to hand. You may need to supply photocopies or originals of bank statements, pay stubs, tax information and anything relevant to the loan company s request. If you need to mail off originals, then it is a good suggestion to make sure that you mail it recorded delivery so it will be signed for as proof of receipt by the recipient.
Receive Your Loan Agreement
While refinancing a car loan with bad credit may seem like a thorough process, you can stop the process whenever you want to do so. You still have the situation that precipitated your request in the first place. If you decide to halt the process, work with your bank or loan officer to find a solution to your problem. Perhaps the bank has a buyer looking for a vehicle that is like yours. This buyer may be willing to take the vehicle off your hands for the remainder of your loan. Be sure there are no resulting penalties from your attempted refinance.