Replace Your Current Car Loan With A Lower Interest Rate
If you have recently purchased a car and the dealer prompted you to take a high interest auto loan that has high monthly payments, you need to refinance the loan to lower your car payments as soon as possible.
Alternatively, your credit may have been good when you applied for the loan, but the dealer told you this was the best interest rate you could get at that time. Unless you searched for financing yourself, you do not know if that was true. Many dealers use loan companies that have higher than average interest rates to receive the loan incentive offered by the lender to the dealer.
They can also take advantage your FICO auto industry credit score by choosing the lowest score shown out of six to choose from. You should learn how your credit score to buy a car is evaluated. You do not deserve to pay the higher interest fees so a dealer can make a bigger profit off of your loan.
Banks auto loan lenders can offer lower interest rates to subprime credit buyers, making it possible to find excellent interest rates on subprime options.
Get The Best Auto Loan Rates
If it has been some time since you got your original bad credit auto loan. The interest rates may have dropped several points, creating an opportunity to take advantage of the new lower rates. If you have an APR higher than 7%, you may be able to do better.
If you have a variable rate on your existing loan, you will want to refinance that loan while the interest rates are low to get a fixed rate. Fixed rate loans have a fixed interest rate that will not change throughout the course of the loan agreement so if the economy drops off your payments will stay the same.
Even two points can save you hundreds or even thousands of dollars over the term of the car loan. You can check this with the use of an auto loan payment calculator. As you put in the loan amount and the APR along with the loan terms, you want you will see what your estimated payments will be. You will also see how the loan term will affect your monthly payments.
Car Equity Loan with Bad Credit
If you are struggling with your budget to make your monthly payments, reducing your car payment is the best way to adjust your cash flow without affecting your lifestyle.
Replacing your bad credit car loan can extend your loan term and lower your monthly payments without hurting your credit. You will need to know your present car resale value versus the amount you will owe before committing to this type of loan, or you could go upside down with a car loan.
If you had bad credit or had not established any credit at the time you bought your new car, you are probably paying too much for your high-interest car loan. You can take advantage of your improved credit score and refinance your auto loan with bad credit for a new car loan with a better rate.
Don’t know your credit score? You can check your credit score right here for free.
If you are involved in a dispute settlement, divorce or separation settlement, child custody or drawing up a will, you will need a highly skilled lawyer. A car refinance is one of the best ways to get that large amount of money it takes to pay for legal fees.