Table of Contents
- 1 Reasons to Refinance Your Car
- 2 Should YOU Refinance Your Car?
- 3 Auto Refinance Lenders
- 4 Car Refinance Financial Issues
- 5 Refinancing After Bankruptcy
- 6 Is Refinancing a Car Bad for your Credit?
- 7 How to Use Your Car Loan to Help Your Credit
- 8 Interest Rates
- 9 Loan Amounts
- 10 Should I Refinance My Car?
- 11 Debt Consolidation Auto Refinancing
- 12 Cash Back Car Refinancing
- 13 How Do I Refinance My Car?
- 14 Qualifications for Refinancing
- 15 Car Refinancing FAQs
- 16 The Best Solution
- 17 Bad Credit Auto Refinance Application
For many drivers, opting for a bad credit auto refinance can be a huge money saver. The amount saved in interest charges or payment terms can free up the cash for other bills such as housing payments, another car, etc. It’s easier than ever to refinance your current auto loan online without ever leaving the house. We offer 100% bad credit auto refinancing application acceptance though our large database of lenders. This page will answer all questions surrounding refinancing a car with bad credit.
By opting for a bad credit car refinance of your current loan you can reduce the amount of monthly expenditures and free up some funding for other purposes. When bad credit applicants originally finance their car they more often than not pay a very high interest rate from the lender. The finance company will do this to offset the risk associated with the loan. However, with consistent payments made over time, ones credit score will have improved allowing them to negotiate a lower interest for their bad credit car refinance or loan modification.
With many lenders charging interest rates of 20% and above, simply reducing this by a few percentage points could mean a savings of thousands of dollars over the course of the loan. In this way a bad credit car refinance online is a great idea.
Have you walked into your local bank and told the the loan officer: I want to refinance my car loan with bad credit? We’re sure their response wasn’t too encouraging. Many local banks simply prefer the great credit clients rather than those looking for bad credit car refinance banks. However, we have a much different attitude. By partnering with institutions and dealers all over the United States we are able to provide bad credit car refinance loans and financing for credit scores that the local bank or credit union couldn’t begin to.
Doing a bad credit car refinance loan can nearly always produce a positive change. The refinancing process can involve some legwork on the consumer’s side but it is still, highly suggested that anyone in financial struggle with outstanding loan payments consider refinancing. By leg work we mean that there will be a certain amount of information that you will need before finalizing the bad credit auto refinance online. This includes the mileage of the vehicle, the information of the bank that currently holds the loan (that the new financial institution can send the payoff to), etc. All in all this will take less than 30 minutes to an hour and can save thousands over the term of the loan. To us, that’s a pretty good pay for one hours worth of work!
Bad credit auto refinance companies are a great option for those with a poor credit history because they can provide more than one benefit, which we will discuss below. The greatest benefit, as we discussed above, is that it reduces the interest rate and as a result, the total amount paid interest and monthly payment is also reduced.
Bad credit is a serious obstacle for individuals seeking low-interest auto loans or auto refinance with bad credit. If your credit history is preventing you from getting a good interest rate, you may qualify for a bad credit auto refinancing loan. You can lower your payments significantly by using this option to replace your current loan. Even an individual with a new high-interest loan can modify their payments easily through an auto refinance loan.
Refinancing your car loan when you have bad credit can make a lot of financial sense, under the right conditions. This option can free up a lot of money or save money on future payments, as well as making the car loan refinance easier to deal with a month-to-month basis. Here’s a list of a few good reasons to refinance your auto loan with bad credit.
Reasons to Refinance Your Car
Your Credit Score Has Improved
When a bank or other financial institution makes a bad credit car refinance loan they take many different factors into account. The credit score of the borrower is one of the most important factors. This number is meant to be an indication of how likely the borrower is to pay back the loan.
The bank doesn’t necessarily know why a person has a certain credit score – they just see the number. So when they see a person has a low credit score, they will charge a high interest rate to compensate for the potential risk of the borrower.
However, this rate is not set in stone. Making regular payments on an auto loan refinance will improve the credit score of the borrower over time. Furthermore, as time goes on, events that reduced that credit score in the past start to drop off the credit report.
The bottom line is that people can improve their credit score from where it was when they first took out an auto loan.
If that is the case, choosing to refinance your car can save a lot of money. The reason is that under a refinance, the borrower can obtain a new loan that reflects their new credit score. The new loan can have a lower interest rate, which will save the borrower hundreds, if not thousands of dollars over the lifetime of the loan. The new lower interest rate you receive after you refinance your car will have lower monthly payments and will be easier to manage both in the long term and the short term.
The key is that your credit score is not a static number – it changes over time, so a bad credit car refinance can take advantage of a lower credit score to give you much better terms on your auto loan refinance.
You Want Equity From Your Car
“Equity” refers to the difference in how much your original loan amount was and how much the underlying asset is actually worth. For example, if your car is worth $7,000 but you have a $5,000 loan on it, you have $2,000 worth of equity in the car. Equity also means ownership- it is the amount of the car that you own yourself, as opposed to the amount that the bank or lender technically owns.
A refinance can turn that equity into actual cash. Because a refinance is a brand new loan that replaces the old one, the refinance process can give you your equity as one big check. When you get a bad credit auto refinance from a company, they pay off your old loan and extend you a new loan that covers the remaining value of the car. If there is a difference in the size of the old loan and the new loan due to having equity in the car, the refinancer can give you the money.
Even if there is no difference in monthly payments or the interest rate, having the extra money from equity is always helpful. The money can go towards expenses or even back into the loan itself, to help you pay it off more quickly. In any case, having the equity out of the car in the form of cash is a handy trick that you can only get through refinancing.
You Want To Restructure Your Loan
Sometimes, the initial loan you get from a lender just doesn’t suit your budget, or your financial situation changes and you want to adjust your loan. A refinance can help you accomplish this.
For example, even if your credit score has not changed, although it has likely improved over the course of paying off the loan, a refinancing company might be able to get you a new loan with different terms. Extending the length of the loan can lower the monthly payments, making the loan easier to deal with month by month. However, this also means that you will pay more in interest over the course of the loan.
Be sure to examine all of the options carefully when thinking about refinancing a bad credit auto loan- there can be tradeoffs between short term gains and long term losses, or the other way around. But if you really feel that you need to reduce your monthly payments to fit your budget, contacting a refinancing company that specializes in bad credit auto loans like Valley Auto Loans can help you restructure the terms of your loan to better fit your financial situation.
You Want A Better Credit Score
Even if you are managing your current loan with your budget, if the loan payments are large enough to be burdensome and you fear that you might need to make a late payment or miss a payment in the case of an emergency, you might want to refinance your auto loan to protect your credit.
Refinancing as above to obtain a lower monthly payment makes it easier for you to ensure you will always make the payments every month. Making payments every month improves your credit score. This means that for any other time you need your credit score, such as taking out a home loan or other type of loan, you will be able to obtain a better interest rate.
Having a good credit score opens up many doors in terms of other financing channels, so it is important to have as strong a credit score as you can. For that reason, you could refinance your car to lower your payments can make it easier to boost your credit score: it shows banks that you are responsible enough to pay down your loan every month.
Should YOU Refinance Your Car?
A bad credit car refinance loan isn’t for everyone, but for those who think that one of the above reasons might interest them in refinancing their bad credit auto loan, Valley Auto Loan can help you through every step of the process. Valley Auto Loan has experience with getting its customers the best possible terms regardless of their credit score, so don’t worry about not qualifying for a refinance. Refinancing an auto loan is a financial transaction that you shouldn’t take lightly, but Valley can provide you with information and quotes about the potential benefit of refinancing your car with bad credit through us.
Auto Refinance Lenders
Lenders usually reserve high interest rates for individuals with poor credit histories. The great offers advertised on commercials and billboards are usually for persons with good credit. When you go to a car dealership, the salesman will offer you a loan from one of the finance companies working with their organization. In most cases, these financiers will reduce their risks by only approving the candidates with the fewest marks on their credit. If they decide to approve a loan for a person with poor credit, they will protect their investment by attaching a high interest to the loan.
It is tough to criticize lenders for protecting their interests. However, they are ignoring a large segment of the population by reserving the best refinance interest rates for people with good credit. Due to unfortunate circumstances, many individuals are dealing with debt and credit issues. If these issues are serious, they will show up on the person’s credit report and tarnish their status.
In some cases, these marks will remain on an individual’s report, even after they settle their debts. Once a person has negative credit marks, they may not be able to receive fair loans unless they deal with bad credit loan specialists.
Car Refinance Financial Issues
Lenders who work with bad credit applicants are aware of the financial issues plaguing the population. They still choose to work with these individuals because these lenders believe in second chances. They do not believe in penalizing a person for life just because they made bad decisions in the past. This is especially true for the individuals who made a conscious effort to correct their previous financial mistakes.
The existence of these companies is evidence that individuals with bad credit are not necessarily irresponsible. Just because they fell on bad times doesn’t mean they are incapable of redeeming themselves. When given another chance, most of these people will dispel the bad credit myth. Smart lenders who take a chance on these customers do not base their lending practices on speculative outcomes.
Reputable lenders offering bad credit refinancing auto loans are easy to find. The current economic atmosphere is compelling traditional car refinance companies to expand their customer base. Unscrupulous financiers who prey on individuals with bad credit still exist. Despite this fact, many qualified lenders are more than willing to offer fair refinance interest rates to everyone.
Don’t allow your past credit problems to crush your confidence. Great financiers like Valley Auto Loans can help you find the loan that fits your budget. Contact a representative immediately, and you will be well on your way to receiving low-interest payments though the best auto refinance rates for your current or future vehicle.
Refinancing After Bankruptcy
After a discharge, you may not look for a car loan after bankruptcy or financing on a large asset for several years. However, dire circumstances may cause you to look for car financing, especially if your older car requires extensive repairs. As you look for quotes from financing companies, you can encounter high interest rates or automatic denials on a car loan. Ideally, you should wait at least three years after a bankruptcy before attempting a financing venture. If you do find a lender that will finance your needs, they will normally assume you are high risk, automatically offering you a high interest rate.
Agreeing to a high interest rate loan, when choosing bankruptcy refinance loans, will not be your downfall. Pay the loan as you research a refinancing company that will offer a better deal. There are lenders, including Valley Auto Loans, that specialize in allowing you to finance a vehicle after bankruptcy and bad credit loans that are fair. You deserve to rebuild your credit with a reasonable interest rate.
A Car Loan After Bankruptcy
Valley Auto Loans believes that you can turn your financial history around through a car loan after bankruptcy. Not every bankruptcy is caused by irresponsible spending. You may have had a medical issue or lost job. Life is full of unexpected events. If you have recovered from a medical problem or found a new job, a refinanced car loan can be a great way to start over.
Where to Begin
Begin your refinancing strategy by researching direct lenders online. Third-party lenders are numerous in the finance industry, but have strict requirements for refinancing a loan. At Valley Auto Loans, we have key industry contacts with direct lenders, allowing us to find the best package for your situation. The process is simple. Fill out one form to access numerous lenders. With competition at its peak, lenders will provide the best rates they can to gain your account. There is no office to visit, just simply go online and type in your information.
We have a blog to help you understand auto industry trends, along with a FAQ section to highlight all your potential questions. The quote process is entirely free with no obligation to purchase anything. Valley Auto Loans can answer all your questions to get your monthly payment changed to a reasonable amount by refinancing your car loan after bankruptcy.
Bankruptcy is a hurdle that is tough to pass, but it is not insurmountable. Allow Valley Auto Loans to look over your current financing package while offering several choices from respected lenders. The application process is swift and simple, allowing you to analyze your prospects quickly as quotes fly in.
With a lower monthly payment, the saved money can go toward other debts or you can save the money to invest later. Your financial future should not be exclusively determined by bankruptcy. With a refinanced car loan, you keep your vehicle while rebuilding your credit. In time, you won’t need specialized lenders. High-risk individuals cannot repair their credit if lenders do not give them a chance. Pay your loan on time and refinance your car loan after bankruptcy with Valley Auto Loans to keep your financial future thriving.
Is Refinancing a Car Bad for your Credit?
When your credit score is bad, you are advised to take a lot of caution when it comes to borrowing any more money. Not only are you the most at risk from predatory lenders, but too many credit inquiries in the pursuit of securing a new loan can also lower your credit score. The ultra-cautious may warn you not to do anything until some of your debts are paid. If you have secured loans at a high interest rate in the past, however, this becomes very difficult to successfully do. Because of this, there are situations where refinancing may make your credit initially go down, but only for a short time. After that, by employing good fiscal habits, certain loans will actually raise your credit score over time. So what’s best for your particular situation? The answer depends on your score, your spending habits, and the new loan you’re looking into. Here are some of the things to consider when deciding if a certain refinance is likely to ultimately help or hurt your credit:
Length of Refinance Loans
It may be your instinct to simply look at how a new loan affects your monthly payments. This, however, is only a portion of the story. Here are some of the other things to consider when deciding on if a refinance will ultimately help or hurt you.
- Length of Loan: Are you trading a five year loan for a ten? Though this is going to drop your monthly payment, it will add to the amount of interest you pay, and lock you into debt for a longer period of time. A longer loan also doesn’t make sense if you have a short time, say two years or less, before your loan is paid off.
- The interest rate: Never take a jump in interest if you have a choice. It makes no sense, particularly if that jump is high.
- The type of loan: Seem to good to be true? It may be. Read the fine print looking for interest only for the first time period, or for a balloon payment due at the end. Both of these will cause potentially devastating amounts due later on.
If a refinance is for a lower interest rate, and doesn’t add more than a year or two to your payment schedule, then this is a good deal. It will also work more quickly to up your credit score, as the monthly minimum owed will go way down.
The Age of the Vehicle
When refinancing a car that you’ve been paying off for some time, the collateral value of the car will change. Not all lenders will insure a car older than ten years, and some will also raise the interest rate on a car older than seven years. This doesn’t mean it’s impossible to refinance an older car, but it does take more work to find the right loan. If the car was new when you first bought it, this is likely not an issue. But if you bought an older used car, you probably won’t get quite as low a rate.
Beware of Fees
Another thing that may affect your ability to refinance is the current prepayment penalty that comes with the loan you have. In many cases, there is no penalty, or it is a nominal fee of $5-75. Because many loans are structured to pay mostly interest at the beginning, lenders are able to profit on a loan even when they are paid down quickly and/or refinanced. However, in some instances, the contract is a “pre-computed loan”– a predatory lending policy that makes you pay not only the principal, but all of the expected interest before it is due. If your loan is in this format, refinancing may require someone to help you renegotiate your loan terms before you close out.
How to Use Your Car Loan to Help Your Credit
There are some very smart ways to build good credit, and the right refinanced loan is a good tool to use to get there. By making regular payments, successfully eliminating debt, paying more than the minimum amount owed, paying on time, and reducing the monthly minimum owed, your credit score will naturally raise. There are a few painless tricks that you can use to make this an easy process:
Find a Lower Interest Rate
If your loan is at a high rate now, finding a lower rate will often lower your payments and your total amount paid by a good amount. The larger the drop in percentage, the more savings you get.
Continue to pay the same amount: Just because you’ve dropped your payments doesn’t mean you should use the freed-up money to go shopping or indulge in the behaviors that ruined your credit in the first place. Instead, use the money you save to either pay down the refinanced loan, or the principle on the highest interest debt you have.
If you don’t always pay on time try to trick yourself into an early deadline, say two weeks early , and then being five days late will still mean you’re early. Depending on the structure of your loan, this can even save you some interest paid over time.
Set up Automatic Payments
This means the money gets paid first, from your account, especially if you schedule it to be withdrawn on payday. Some loans give the option to pay every two weeks instead of monthly, which results in an extra payment once a year.
The Best Things Come to Those Who Read
Refinanced loans are great for helping to improve your credit situation, as long as you understand what you have, and what you’re trading it for. Take some time and understand the loan you currently possess– interest rate, monthly payment, amount still owed, amount of time left, prepayment penalties, and how the interest is calculated- as a fixed monthly percentage or frontloaded in the loan. Take a look at these same features with your new loan, and the more places that are an improvement over your current loan, the better deal you have.
A Better Life Through Refinance
Bad credit places you into a category of high-risk or sub-prime car loans when looking for a bad credit auto refinance loan. This means that many lenders won’t give you the time of day, but all is not lost when looking for a bad credit car refinance.
We want to help our clients as much as possible by making sure they are informed on topics like this, as well as other information they will need when negotiating with dealerships and financial lenders when refinancing.
Remember, refinancing success varies by everyone’s individual situation. You may not get the exact change that you want, but refinancing can almost always offer a helpful hand in situations of financial stress.
Who Should do a Bad Credit Car Refinance?
There are many circumstances where doing a bad credit car refinance would be a wise choice. These include but are not limited to:
- Being unable to afford the monthly payments.
- Wanting a lower interest rate because of poor credit history or the fact that interest rates have recently dropped.
- Wishing to take cash out on the equity built within the vehicle.
- A recent financial setback such as a job loss, medical expenses, etc.
- You were previously leasing the vehicle and would now like to purchase it.
Interest rates vary day to day as well as from bank to bank, even with bad credit car refinance loans. We use hundreds of banks and institutions to provide our customers with the absolute best deal. However, as a reference point we have listed some general interest rates for your convenience. These are not intended to act as a guarantee because each loan is different from another. However, they will give you a good benchmark to see what the market conditions are and how much you are likely to save by doing a bad credit car refinance with us.
- Interest Rates for an Auto Refinance with Bad Credit
- While most people have heard of car refinancing, not many know the benefits that it can hold, especially for those who can get a new loan at a lower interest rate for their used car. When most people finance a car, they assume that their interest rate and monthly payments are fixed; however, this is far from the truth. In many cases, one can save a dramatic amount of money by refinancing their car at a lower interest rate. Additionally, if current car payments are too high for one’s budget, refinancing can result in a lower monthly payment and a potentially increased credit score. There are a variety of ways that refinancing can be a prudent and profitable choice in the long-run.
- Refinancing at a Lower Interest Rate
- Because interest rates are lower than they have been over the past several years, now is the perfect time to look for an opportunity to refinance. By acquiring a new loan with a lower interest rate, one can save thousands of dollars which would have otherwise been spent on excessive interest fees. This means a drastically lowered monthly payment, and more money to spend on other, worthwhile investments.
For those who have taken out a car loan over the past several years, it can be a good idea to browse refinancing rates in order to find one that can save money over the long-run. In order to ensure that these new refinancing rates will be profitable, it is a good idea to use a loan calculator. This can help one assess the savings from new monthly payments as well as compare the duration of payments.
Refinancing for Credit
Another reason why it may be prudent to refinance a car is credit. Often, the amount paid monthly for a car may not fit into the current budget. In this case, a longer duration refinancing plan may be helpful. This can help drastically improve one’s credit score and reduce the risk of repossession before it is too late. When refinancing for credit reasons, be certain to find an interest rate that is lower than current finance rates or else one may wind up paying much more than necessary.
In addition to the interest rates above we have also included these loan amounts and terms for your reference in regards to a bad credit auto refinance.
- Bad Credit Auto Refinance Terms and Amounts
Should I Refinance My Car?
We want you to have all the facts before you make your final decision. We can help you with refinancing your car, even with bad credit, but we want you to make an informed decision. To recap the question, “how to lower your car payment with bad credit” that we asked above and offer a few more benefits we have provided the list below.
- Lower Your Interest Rate - did you have bad credit when you bought the car? If so, chances are that your bad credit isn’t as bad as it was before, and if you’ve had the loan for a year or more and have made your payments on time, then refinancing at a lower interest rate is quite possible. Even one percent can save you hundreds of dollars over the life of the loan.
- Lower Payments - extending the length of your loan along with lower interest rates will give you a lower monthly payment. Lower monthly payments can also be accomplished if the principal owed on your car is lower than the original amount borrowed. As an example, auto loan refinancing can add 12 additional months to a loan term that is originally scheduled to have 24-36 months. However, this extends the loan payoff date and increases the total expenses on interest. Many consumers still prefer this option to free up money for their essential monthly expenses. The possibility of missed or late payments is also reduced by this method.
- Equity Swap - you may have to provide a substantial down payment when you bought the car and you need money now. There are conditions where a car has equity in it and by refinancing you can draw the equity out in cash. Your cars make, mileage, book value, and condition will determine the amount of equity your car has. Even at higher interest rates, because of your bad credit, it may still make sense to do this. Using the money to payoff high interest rate credit cards or things like this could make financial sense. Your first step is finding out what your interest rate will be for a bad credit car refinance. Then find out if there’s equity in your car, in case an equity swap is feasible.
- Credit Score Improvements - Refinancing a car loan also has the potential to repair an individuals credit score, because expensive payments become less of a hassle. It is easier to pay them on time or even early, and with more than the required cost. This will make you appear more responsible and capable, and eventually your credit score will improve as a result. Lower monthly payments make it much easier for borrowers to make their monthly payments on time. This is reflected as an improvement in your FICO scores because all lenders send payment reports for an auto loan refinancing to the credit bureaus.
While another finance option such as a new car, buy here pay here, etc. may have a certain appeal, refinancing a current vehicle loan has numerous benefits over these other options, as we’ve already seen. By choosing this road one can not only save money but also improve their credit at the same time.
Is Refinancing Difficult?
Contrary to popular belief, applying for refinancing is typically quite simple, especially for those with a decent credit score. Many people shy away from the option of refinancing simply because it is uncommon. Unlike refinancing a home, refinancing a car doesn’t require any lengthy appraisals or inspections.
One of the best features of refinancing is the simplicity of the application process. One can find, and apply for, a variety of different refinancing plans from their computer. There are a variety of companies that offer refinancing; this makes comparing rates and plans a very simple and quick process. There are even a variety of lenders that offer refinancing plans for those with poor credit.
The benefits of refinancing a car are immense, especially if the initial loan has high interest rates. Additionally, the application process for refinancing is simple, quick and available to anyone. All of these factors make refinancing a great option for anyone looking to save money or improve their credit score.
Bad Credit Auto Refinance Companies
Unlike many of our competitors, who work with a small handful of lenders, sell or lease their mailing lists and/or are only out to benefit themselves, Valley Auto Loans stands above the fold when it comes to bad credit auto refinancing companies. Having filed bankruptcy themselves and know what it’s like to try to buy and also refinance a car through this, they have set a mission to provide the absolute best company and service to their customers. Through much hard work, we have been able to establish relationships with lenders all over the United States, Canada and the UK. It is our goal to educate and assist customers in any way we can.
It’s Easy…But Be Careful!
With the age of the internet upon us there is more than one option out there for refinancing your vehicle online. However, more is not always better. Unlike us, there are many “companies” (we use that term lightly here) who develop a website to simply profit off of the information provided. We have gone the extra mile to provide a 100% secure and encrypted website for our visitors. Hosting on multiple servers with customer information out of the reach of all other data we have taken all extra measures to make sure your information stays safe. We also do not sell your information to any outside source. We work with our strategic partners, who will contact you after submitting your application, and that’s it. It’s all in the family here!
Debt Consolidation Auto Refinancing
Around the US, Americans have been affected by the bad economy in one way or another. Whether the interest rates of your credit cards have been increased, your limits have been lowered, or your home equity line has been closed, you may have had to resort to a payday loan to make ends meet. This resulted in high interest rates and it was more expensive than you thought it was going to be. It’s more expensive than ever before to manage your debt and this is because of overdraft fees, late fees and much more.
At Valley Auto Loans, we have a solution for you to explore. You can save money on your car and consolidate your debt in a convenient manner. There are many benefits to consolidating your debt through a cash back auto refinance – and we’ll show you how!
The name says it all – you can get cash back when you refinance your automobile.
When you refinance through Valley Auto Loans, you can turn your car into the ATM that you’ve been searching for. It may be possible to use your car’s value to tap into as much as $5,000 in cash. Think about what you can use this money for – and all because you decided to save money by refinancing your car.
If you choose to use the cash-out money for debt consolidation, you can tap into such benefits as:
- Lower your monthly payments
- Pay less interest
- Manage fewer accounts
- Have lower payment expenses
You can pay down (or off) some of your debts with the cash back that you obtain from Valley Auto Loans. You can then lower monthly payments. When you have fewer credit cards, you don’t have to worry about other fees, such as stamps to send off payment or fees when you make a payment over the phone.
When you have a lower balance, you also pay less in interest throughout. The interest is based on how much debt you have. If you use the cash back on your auto refinance from Valley Auto Loans, you can spend less money on interest and make a larger impact on your principle.
You can have fewer accounts than ever before. As you keep paying them down and off, you will be able to get yourself out of debt easily. There’s no easier way to handle your debt in today’s economy than the new service that we have to over.
A cash-out refinance may be the solution that you have been searching for. When you refinance your car, you can take advantage of a lower payment – and start saving money right away. When you take cash out from the new loan, you can also start saving money on interest by managing fewer accounts and making fewer payments.
Cash Back Car Refinancing
Refinancing your car to release the equity in it is easy, even with bad credit. There are situations where refinancing your car makes sense, and with the extra cash you get you can consolidate debt or use the cash for whatever you want.
There’s two parts to refinancing – your credit score and the cars value. Lenders look at a cars loan to value ratio. Equity is where the value of your car is higher than the amount you owe. This is the primary factor for calculating how much cash back you can get from a refinance.
As far as the interest rate on a refinance, bad credit won’t disqualify you from getting the loan, but do expect rates to be higher. At Valley Auto Loans, we have a network of lenders that specialize in bad credit auto refinancing. We have helped thousands of customers, with bad credit, get cash back refinancing already. We’re confident we can do the same for you too.
Unlocking the equity in your car can be beneficial in many ways. Lets take a look at how cash back refinancing can help.
Consolidate High Interest Debt
We touched on this earlier. You may have credit cards or personal loans with sky high interest rates. If so, consolidating these debts can actually lower your payments and put extra money in your pocket at the end of each month.
Unexpected repairs to your home can happen at any time. Instead of waiting weeks for the bank to approve your loan, why not refinance your car and get the money you need in a matter of hours. You don’t want minor repairs turning into a major headache just because you couldn’t get the money in time.
Taxes and Other Outstanding Debts
Tax season comes around once a year or you may be behind on other debts, either way high interest rates, penalties, late charges, and fees can eat away at your finances. Unlocking the cash from your car could be the perfect solution to solving these headaches. Penalties and late fees can be three times as costly compared to paying higher interest rates on a refinance, because of bad credit – run the numbers.
Increase Your Monthly Cash Flow
People that have a lot of credit cards, even with small balances, have cash flow problems. Little payments of $25.00 and $50.00 here and there add up, and at the end of the month there’s not a lot of cash left over. Paying off these little debts can actually help increase your cash flow, leaving you with extra money each month.
If your frustration level is mounting because you’ve been turned down elsewhere…stop! You won’t be turned down with us. We are the leaders in bad credit auto refinancing, and we can help you unlock the equity in your car by getting you the cash back you need.
How Do I Refinance My Car?
In order to have the best experience possible when refinancing your car we offer these tips:
- Be sure to choose the right lender for you. – As mentioned before, once you submit your application with us, you will be contacted by one or more of our partners with the next steps to complete your refinancing. Take your time and compare the options. There’s no obligation on your part to refinance. If you don’t like the options presented don’t feel pressured to continue. The most important thing is that you feel this is something that will benefit you in the long term.
- Make use of our auto refinance calculators. – This will give you an idea of how much money you stand to save as well as how the different options (number of months, cash out, decreased interest rate, etc.) will affect your monthly payments.
- Check your credit score. – If you have not recently checked your credit score we recommend you do so now. We offer a free report from one of our partners that you can receive here.
- Compile the information on your current auto loan. – The new lender will want to know who your vehicle is currently financed through as well as mileage, make, model, year, etc of the vehicle. Go ahead and get this together now, it will make the process go much faster and easier in the end.
Where Can You Find a New Auto Loan?
Apply for a New Loan
What Happens When the Loan Is Approved?
Qualifications for Refinancing
Car refinancing with bad credit is a popular alternative for many because it can reduce monthly auto loan payments to be made by the borrowers and also help improve their credit score. However, those interested in qualifying for a bad credit auto refinance must meet certain parameters. The good news is that even the poor credit borrowers can use a car refinance loan and lower their auto loan payments significantly.
There are a few small requirements for refinancing your vehicle. These are:
- Payoff amount and remaining term for the current loan.
- Proof of Income such as a paycheck stub, etc.
- Vehicle Title or Limited Power of Attorney to Modify the current title.
Car Refinancing FAQs
- Can I get Cash Back? - Yes. If there is enough equity built into the vehicle through your current loan, or if you qualify for a larger loan, we do have partners that will allow you to take out cash when refinancing your vehicle. However, this is based on your qualifications and cannot be guaranteed without first applying.
- Can I choose to do bad credit auto refinancing if i’ve had a bankruptcy? - Yes. If you are currently in active chapter 7 or chapter 13 bankruptcy you will need a letter from your trustee granting permission to take on this debt. In order to get this letter, simply contact your bankruptcy attorney and they should be able to provide this for you. If you have had a bankruptcy in the past, but it is no longer active, you can also qualify. We have lenders that provide bad credit auto refinance loans with both active and closed bankruptcies.
- Can I qualify for bad credit auto refinancing if i’ve had a car repossessed? - Absolutely. We have many lenders that work with this situation.
- Is refinancing a car bad for your credit? - No. It may actually help your credit in the long run due to the reduced payments allowing you to make them more consistently.
The Best Solution
It can be said that refinancing is a great alternative, if you have a high monthly payment that you are struggling to pay on a regular basis; and you can start your journey right here, right now. We have a nationwide group of lenders offering the best possible auto loans for those with bad credit.
Our lending partners specialize in bad credit, auto refinancing. While many lenders will show you the way out of their office, when you ask about refinancing your car with bad credit, we open the door and invite you in to apply for a loan online.
Bad Credit Auto Refinance Application
We have been deeply involved in changing lives of consumers with a poor credit history. Our exclusive car refinancing for bad credit approval system provides low interest car loans, even for customers with poor or no credit. We also offer our opinion on the most relevant financial issues to help people make the most out of life in spite of their financial constraints through articles on this blog.
You are a valued customer to us, no matter how bad your credit is – we can help you refinance your car today through what we consider to be the best way to refinance an auto loan available. While your hear be sure to read more about topics like the no credit check auto loan or go ahead and apply online now for a bad credit auto refinance loan!