Bad Credit Auto Refinancing
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For a lot of drivers, a bad credit auto refinance of their existing car loan can be a huge money saver. The amount saved in interest charges or payment terms can free up the cash to put towards other bills such as rent, another car, etc. It’s easier than ever to refinance your current auto loan online without ever leaving the house. Valley Auto Loans offers 100% bad credit auto refinancing application acceptance though our large network of lenders. This page will cover all questions surrounding refinancing a car with bad credit.
By refinancing your current auto loan you can reduce the amount of monthly expenditures and free up some funding for other purposes. When bad credit applicants originally purchase 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 auto refinance online is a great idea.
How To Get A Bad Credit Auto Refinance
Have you walked into your local bank and told the the loan officer: I want to refinance my car but I have 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 auto refinance banks. However, we have a much different attitude toward “risk”. By partnering with institutions and dealers all over the United States we are able to provide 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. 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!
Auto loan refinancing is a great option for those with a poor credit history because it provides more than one benefit, which we will cover 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.
A Better Life Through Refinance
Bad credit puts you into a category of high risk or sub-prime car loans when looking for a bad credit auto refinance loan. This means a lot of lenders won’t give you the time of day, but all is not lost when looking for a bad credit car refinance.
At Valley Auto Loans 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 auto 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
Interest rates vary day to day as well as from bank to bank, even with bad credit auto 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 auto refinance with us.
Bad Credit Auto Refinance Interest Rates
Loan Amounts
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?
At Valley Auto Loans, 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 put 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.
Bad Credit Auto Refinance Companies
Unlike many of our competitors, who work with a small handful of lenders, sell or rent 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 Valley Auto Loans, there are many “companies” (we use that term lightly here) who put up 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 or rent 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!
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 offers 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.
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 network of lenders offering the best possible bad credit auto loans and auto refinance with poor credit borrowers.
Our network of lenders 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, at Valley Auto Loans, we open the door and invite you in to apply for a loan online.
Start The Process Here
At Valley Auto Loans, we have been deeply involved in changing lives of consumers with a poor credit history. Our exclusive car refinancing for bad credit approval system offers 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. Apply online now for a bad credit auto refinance loan!
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