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Auto Refinance Loans For Bad Credit

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Auto Refinance Benefits

An auto refinance can be a great choice If you need to lower your car payments, put some cash in your pocket or get a lower interest rate. Valley Auto Loans specializes in bad credit auto financing and is widely known as one of the top auto refinancing companies in the United States. Your goal with any auto refinance should be to get lower payments and improve your credit score without the risk of further damage to your credit history. We want you to make an informed decision about any type of car refinance offers you need while providing the best rates for auto refinancing.

We offer you the ability to apply on-line to refinance your auto loan with no application fee or obligation. Valley Auto Loans is widely known as one of the best car refinancing companies, even when you have bad credit history. We can help with your refinance and find a great rate for your unique situation and skip a payment in the process.

We can also answer many questions you have about refinancing your car loan as well as many other auto financing with bad credit topics. You may want to check out our regularly updated blog posts from industry experts. We also offer FAQs and our other resources to help you with decisions about your next vehicle refinance or finances in general. If you have any new car buying questions, you should see our “new car buying guide.”

Refinancing your car can make a lot of financial sense, under the right state of conditions. 1 An auto refinance can free up a lot of money or save money on future payments.

Refinancing your car or truck has many of the same advantages of refinancing your home mortgage. You can lower your interest rate, reduce the monthly payments and extend the term of the loan. Refinancing a vehicle is a lot easier and faster when compared to refinancing a home and you don’t have closing costs or upfront fees to pay in the process.

car refinancingThe process can be very easy when working with Valley Auto Loans’ bad credit auto refinancing lenders. Also, notice that qualifying for a refinance auto loan with poor credit can let you reclaim the equity in your car. This “cash out” can be used in many other ways. Let’s take a look at the multiple ways that cash back refinancing can help you.

Consolidate Debt

  • Consolidate High Interest Debt – You may have credit cards or personal loans with sky-high interest rates. If so, you could apply to refinance the loan. Consolidating these debts can actually lower your payments and put extra money in your pocket at the end of each month. 2

Free Up Money

  • Free Up Money for Home or Auto Repairs – Unexpected repairs to your car or home can happen at any time. Instead of waiting weeks for the bank to approve a personal 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 major headaches just because you couldn’t get the money in time. Even worse, waiting too long could force you into the position of getting rid of a car you love because you don’t have the cash to fix the transmission.

Lower Your Car Payment

  • Lower Your Payments to Increase Your Monthly Cash Flow – Extending the length of your auto loan, along with a competitive interest rate, 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.

Auto RefinancingAs an example, auto refinance with bad credit can add 12 extra 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 and annual expenses. The possibility of missed or late payments is also reduced by this method.

Lower Your Interest Rate

  • Start Over With a Better Interest Rate – Did you have bad credit when you bought the car? If so, chances are that your FICO score isn’t as bad as it was before. If you have 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.

You don’t have to wait until your loan is paid before taking steps to improve your interest rate. Even one percent can save you hundreds of dollars over the life of the loan. You can also dramatically lower your monthly payments if you can afford to put up a down payment as well.

Skip a Payment and Get Cash Back

auto refinancing with bad creditYou may have been required 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 of the car in the form of cash.

Your cars make, mileage, blue book value, and condition will decide the amount of equity your car has. Even at higher interest rates, it may still make sense to refinance car loan with bad credit. Using the equity to get money to payoff higher 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 refinance. Then find out if there’s equity in your car, in which case an equity swap is possible, in the event you opt to refinance car loan with bad credit.

  • Skip A Payment – In most cases, the refinancing process will also allow you to skip a car payment.

Your first payment may not be due for up to 60 days and could put cash back into your pocket.

  • Credit Score Improvements – People can improve their credit score from where it was when they first took out the existing auto loan.

refinancing with bad creditChoosing to refinance your car can save a lot of money. The reason is that in a previously poor credit situation, the borrower can get a new loan that reflects their new credit score.

The new loan offered can have a lower interest rate. This will save the borrower hundreds, if not thousands of dollars over the lifetime of the loan. A bad credit, car refinance can take advantage of a lower credit score to give you better terms on your vehicles refinance. This reflects an improvement in your FICO scores because most lenders send payment reports for an auto loan refinancing to the credit bureaus.

Applying for an auto loan multiple times can actually hurt your credit score. Some companies send your application to many different lenders who will run individual credit checks. This is known as loan application aggregation.

We review your application with our specially chosen lenders to find you the best rate. Then a credit check is run after we have found the best lender for your situation. So you get the benefit of having lenders compete for your business without multiple credit inquires.


Should I Refinance My Car?

We accept applicants with all types of credit history. After submitting your application, Valley Auto Loans will match you to a lender or agency that will get you the best possible loan for you situation.

The lender will contact you through a call or email if any additional information or resources needed. They will complete the application and then run a credit check and take other steps to decide if you are a good credit risk for the loan that you want.

The lender will contact you directly to review your application with you. In some cases, your lender may want more information before approving the loan.

Refinancing an Auto Loan with Bad CreditIf your loan is approved, you can review your new loan agreement information and decide if this fits your budget. If you agree to the terms within the documents and disclosures the lender will take care of the loan payoff process and title transfer. The lien is then transferred from the old lender to your new lender. You then start making payments to you new lender on the agreed upon start date of the loan.

In many cases, you will be given 45 to 60 days to make your first payment.

Many times this allows you to keep what would have been equal to your car payment during this time. Refinancing a car loan is similar to getting the first loan on your car. The process is very simple and direct and you can start enjoying the lower car payments now.

Common Refinancing Misconceptions

There are many misconceptions that discourage applicants from pursuing a vehicle refinance.

Valley Auto Loans does indeed have lenders that can approve you for a refinance in spite of the following:
  • Previous or open bankruptcy.
  • Having a vehicle repossessed in the past.
  • Income that is hard to prove (typically amount self-employed people).
  • Applicants that are currently receiving disability income.
  • Applicants with a low-income.
  • Applicants who have bad credit or good credit – but not Great credit.
  • Individuals with little or no credit history.
  • Those looking to refinance a vehicle loan that is currently upside down.

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. It can also help improve their credit score.

However, those interested in qualifying for a bad credit auto refinance must meet certain requirements. The good news is that even the poor credit borrowers can easily qualify for a car refinance bad credit loan and lower their auto loan payments significantly.

There are a few small requirements to refinance your auto loan with bad credit. These are:

  1. Payoff amount and remaining term for the current loan.
  2. Proof of Income such as a paycheck stub, etc.
  3. Vehicle Title or Limited Power of Attorney to change the current title.

Bad Credit Auto Financing

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 with current income level.
  • 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.

Car and Truck Refinancing Options

By choosing to refinance of your current bad credit loan you can reduce the amount of monthly expenditures. When you first financed your car you may have taken a loan from the car dealer. Your credit at that time may not have been very good and you took what you were offered.

There are lenders who specialize in bad credit car loans and have competitive rates for those who shop around. Most people with bad auto loans didn’t shop around for the best loan possible. When bad credit applicants originally financed their car they consented to a very high interest rate.

They simply didn’t know there are better deals out there.

The provider charges more to offset the risk associated with the high risk auto loans. Car loans with no credit checks are notorious for high interest rates. However, with consistent payments made over time, your credit score will have improved. Then it is possible to negotiate a lower interest for their bad credit, car refinance or loan modification.

It is easier to find an auto loan lender willing to offer you a vehicle refinance (rather than a new purchase) even if you had a no credit check auto loan.

With many lenders charging interest rates of 20% APR 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, according to the FDIC. 3

Refinance Car Loan with Bad CreditHave you walked into your local bank and told the loan officer: I want to refinance my car 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 loans.

We have a much different attitude. By partnering with institutions and dealers all over the United States we are able to provide auto refinance for poor credit customers. We also provide financing with better rates that the local bank or credit union.

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.

Refinancing a car with poor credit 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 submit an application and get a new auto loan from a car refinance 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 the owners having equity in the car. The auto refinance company can give you the money.

Sell Your Truck or Refinance?

When you first picked out your truck it was exactly what you wanted. It gave you the ability to move cargo and pull stuff that you couldn’t do with a car or SUV. It has a great look and the interior is very plush and roomy but it came with a high price tag. Now you are struggling to make the payments and it looks as if you will need to sell your truck. Before you do anything so drastic lets look at a few facts.

  1. When you singed the loan papers in the dealers office you probably didn’t shop around for a good loan rate because you were in a hurry to get your truck.
  2. You also didn’t do any maintenance to your credit score first before you applied.
  3. And you probably tried to get out with as smallest of a down payment as possible.

Three of the biggest mistakes you can make.

But don’t feel bad, most people make these same mistakes and this is how you get stuck in a bad auto loan. We can help you undo these mistakes with a truck loan refinance and you won’t have to sell your truck.

We can show you how to easily repair your credit score. We can also review your refinance application with many lenders to find the best rate for your credit. Then you will have time to review the new loan and decide if it fits your needs. Also, you can lower your payments drastically by adding a larger down payment. This can cut your present truck loan down to payments you can live with.

You Want a Better Credit Score

Even if you are managing to make your existing loan payments on your current budget, car refinance companies can still be of help to you. 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, you might want to refinance your auto loan to protect your credit.

Refinancing a car loan with bad credit to obtain a lower monthly payment makes it easier for you to be sure you will always make the payments every month.

Making payments every month improves your credit score. 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. If you have mistakes on your report, call the bureaus and resolve the problem by removing incorrect items on the report. To fix charge-offs and other negatives on your credit, you should call your creditors and work on a payment plan. All this should be looked into before you apply for a refinance loan.

Refinancing After Bankruptcy

Valley Auto Loans believes that you can turn your financial history around through a car loan after bankruptcy. There are many ways to buy a car these days so it is best if you use everything available to get the best deal. Agreeing to a high interest rate loan, when choosing bankruptcy refinance loans, will not be your downfall. Pay the loan as you research for the best auto refinance companies that will offer a better deal. There are refinance companies including Valley Auto Loans, that will refinance your auto loan with bankruptcy history, They provide a fair and competitive interest rate. We feel that you deserve to rebuild your credit with a reasonable interest rate!

We have a blog to help you understand auto industry trends, including 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.

Length of Refinance Loans

If your instinct is to simply look at how a new loan affects your monthly payments. Here are some of the other things to consider when deciding on if a refinance will ultimately help or hurt you.

  1. 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. It will 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.
  2. The Interest Rate: Never take a jump in interest if you have a choice. It makes no sense, particularly if that jump is high.
  3. The Type of Loan: Seem to good to be true? It probably is. 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 provides the borrower a lower interest rate, and doesn’t add more than a year or two to the payment schedule, then this is a good deal. It will also work more quickly to improve 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 provide a loan for a car older than ten years. 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 as low a rate.

Pay The Car Refinance Company Early

If you don’t always pay on time. Budget yourself for an early deadline, say two weeks early. 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.

Refinance Car with Bad Credit to Improve Your Budget

Another reason it is prudent to refinance your car with bad credit is the positive impact it can have on your credit score. Often, the amount paid monthly for a car may not fit into the current budget. In this case, a longer duration refinancing plan could help. This can help drastically improve one’s credit score and reduce the risk of repossession. When refinancing for credit reasons, be certain to find an interest rate that is lower than current finance rates.

We have also included these loan amounts and terms for your reference in regards to a bad credit auto loan.

Loan AmountTerms Available
$20,000+Up to 84 Months
$15,000+Up to 72 Months
$5,000+Up to 66 Months

The Best Auto Refinancing Solution

 

In order to have the best experience possible when refinancing a car with poor credit, we offer these tips:

  1. Auto Financing for Bad CreditBe sure to choose the right lender for you. – Once you submit your application with us, you will typically 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.
  2. 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.
  3. 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.
  4. Compile the information on your current auto loan. – The new lender will want to know who your vehicle is currently financed through, mileage, make, model, year, etc of the vehicle. Go ahead and get these documents together and review them now, it will make the process go faster and easier in the end.

Evaluate Your Options First

The first step is to check the current terms of your loan to see if auto refinancing is an option for you. You then must decide if you could benefit from a lower interest rate or the ability to make a lower payment each month. You can then start shopping for a new auto loan.

Refinancing a car with bad credit is often a good idea if your credit score has improved since you got your first loan. You want to pay off the loan in a larger number of payments or you are looking to consolidate your debt.

In many ways getting your loan refinanced is easier than getting the original loan.

Before you shop or even refinance a current loan, there will be a certain amount of information that you will need. Gather this first so you can finalize your loan 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.

Best Auto Refinance Companies

We are unlike many of our competitors, who work with a small handful of lenders and services. We do not sell or lease our mailing lists. We offer a safe and reliable way to apply for a loan without the worry of your information getting into the wrong hands. Valley Auto Loans’ service stands above the fold when it comes to bad credit auto refinancing companies.

Valley Auto Loans’ founder, having filed bankruptcy himself in the past, know what it’s like to try to buy and refinance a car under these conditions.

Best Auto Refinance CompaniesWe have set a mission to provide the absolute best company and service to their customers. Through much hard work, we have been able to set up relationships with lenders all over the United States.

It is our goal to educate and assist customers in any way we can. We have a nationwide group of lenders offering the best auto loans and refinancing options available for those with bad credit.

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. We also offer our opinion on the most relevant financial issues to help people get the most out of life in spite of their financial difficulties through articles on this blog.

It’s Easy…But Be Careful!

Bad Credit Auto RefinanceWith 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.

We host our website on multiple servers, with customer information encrypted and out of the reach of all other data. We have taken every step 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 directly after submitting your application, and that’s it. It’s all in the family here!


Find a Lower Interest Rate

Refinance with Bad CreditIf your loan is at a high rate now, finding a lower rate will often lower your payments and your total amount paid. The larger the drop in percentage, the more savings you get.

Interest rates are lower than they have been over the past several years. Now is the perfect time to look for an opportunity to get a refinance auto loan with poor credit. By getting a lower interest rate with a new loan, you can save thousands of dollars which would have 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 to find one that can save money over the long-run. 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.

Interest rates vary day-to-day as well as from bank to bank. 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.

Loan TermAPR* As Low As
Up to 36 Months3.65%
37 – 48 Months3.65%
49 – 60 Months3.25%
61 – 72 Months3.50%
73 – 84 Months3.65%

When most people finance a car, they assume that their interest rate and monthly payments are fixed; This is far from the truth. In many cases, one can save a dramatic amount of money by qualifying for a refinance auto loan with bad credit 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 different ways that refinancing can be a prudent and profitable choice in the long-run.

The quickest way to pay down the debt after a refinance is to continue to pay the same amount. Use the money you save to either pay down the refinanced loan, or the principle on the highest interest debt you have.

Beware of Fees

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. In some instances, the contract is a “precomputed 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.

General Refi Requirements

For most lenders, the applicant will need to meet the following minimum requirements to refinance their loan:

  1. Applicant is at least 18 years of age.
  2. Applicant is a current United States resident.
  3. Applicant’s vehicle that they are refinancing is no more than 5 years old. However, some refinance lenders that we work with will allow the manufacturing date of the vehicle to be up to 10 years old.
  4. Vehicle being refinanced must have less than 100,000 miles.

 


Car Refinancing FAQs & Tips

Auto Refinance Companies 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.

Some refinance lenders offer cash back incentives if you refinance your auto loan. But be careful what you agree on because the cash they offer is actually being added to your car loan. In many cases this will put you upside down with your car loan. That means the car is now worth less than the car loan. If you have a car that is worth $8,000 and you are given a $5,000 cash back incentive, You could now owe $13,000 for that car + interest. Many times there is additional fees added for this.

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 can 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 auto 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 real lenders that work with this situation.

Is refinancing a car bad for your credit?

No. Car refinancing may actually help your credit in the long run due to the reduced payments allowing you to make them more consistently. Apply for an auto refinance loan today with us to begin the process!