Bad Credit Auto Loans
Auto Finance Starts Here
100% Application Acceptance

Auto Loans for All Credit Types

Request Auto FinancingSecure Auto Loan Application
Fast and Free Approvals! Get the Loan You Need Today.
Receive Your Approval Today

How To Get A Refinance Auto Loan With Bad Credit

Share Us!

The Benefits of Refinancing

If you need to lower your car payments, put some cash in your pocket or get a lower interest rate, Valley Auto Loans will help you apply on-line to refinance your auto loan with no application fee and no obligation, but above all, we want you to make an informed decision about any type of auto financing offers you need. So you may want to check out our regularly updated blog posts from industry experts, FAQs and our other resources to help you with decisions about your finances as well. If you have any quick buying questions you should see our “new car buying guide.” We believe we are the best company to refinance your auto loan, even when you have bad credit history, we can help you find a great rate for your situation and skip a payment in the process.

Refinancing your car can make a lot of financial sense, under the right state of conditions. 1 This change 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 for the consumer. People can improve their credit score from where it was when they first took out the existing auto loan. If that is the case, choosing to refinance your car can save a lot of money. The reason is that with an auto refinance 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, which will save the borrower hundreds, if not thousands of dollars over the lifetime of the loan it changes over time, so a bad credit, car refinance can take advantage of a lower credit score to give you better terms on your vehicles refinance. In most cases, the auto refinance process will also allow you to skip a car payment and could put cash back into your pocket. 2

Bad Credit Refinance Auto Loans

Refinancing your car or truck has many of the same advantages of refinancing your home mortgage like lower interest rates, lower monthly payments and you can extend the term of the loan but it’s a lot easier and faster to get and you don’t have closing costs. In most cases you can even skip a payment. Also, notice that qualifying for a refinance auto loan with poor credit can let you reclaim the equity in your car which is then used in many other ways. Let’s take a look at how cash back refinancing can help in multiple ways and how easy it can be when working with Valley Auto Loan’s bad credit car refinance lenders.

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. 3

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 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. Or getting rid of a car you love because you don’t have the cash to fix the transmission.

Increase Your Monthly Cash Flow

Lower Payments – extending the length of your loan along with competitive interest rates will give you a lower monthly payment. 4 Lower monthly payments can also be accomplished if the principal owed on your car is lower than the original amount borrowed from the dealers. As 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 – 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 5 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.

Get Cash Back

Equity Swap or Cash Back – 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 bad credit refinancing you can draw the equity out in cash. 6 Your cars make, mileage, blue book value, and condition will decide the amount of equity your car has. Even at higher interest rates, because of your bad credit, it may still make sense to refinance car loan with bad credit. Using the equity to get money to payoff high interest rate credit cards or things like this could make financial sense. We can show you how easy it is to refinance with bad credit. 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 possible.

Credit Score Improvements – Refinancing a car loan also has the potential to repair a persons 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 seem more responsible and capable, and eventually your credit score will improve as a result. Lower monthly payments make it easier for borrowers to make their monthly payments on time. This reflects an improvement in your FICO scores because most lenders send payment reports for an auto loan refinancing to the credit bureaus unless your loan was from a dealer you make payments to directly. This is known as a buy here pay here auto loan.

Auto Refinance Poor Credit Situation

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 opting for an auto refinance poor credit loan of your current bad credit 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 consent to a very high interest rate from the lender. The provider will do this 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, allowing them to negotiate a lower interest for their bad credit, car refinance or loan modification. It is thus easier to find an auto loan lender willing to offer you an auto refinance 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. 7

Bad Credit Auto Refinance LoansHave you walked into your local bank and told 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 loans. However, 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 and financing with better rates that the local bank or credit union couldn’t begin to.

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 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 refinance company can give you the money.

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.

Refinance car loan with bad credit to obtain a lower monthly payment makes it easier for you to make sure 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.

A Car Loan 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 a refinancing company that will offer a better deal. There are lenders, including Valley Auto Loans, that specialize in your refinance auto loan with bad credit history and bankruptcy history that are fair. 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. Than 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 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 an auto refinance for poor credit 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 as low a rate.

Pay Early

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.

Getting 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 get a refinance auto loan with poor credit . 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 to find one that can save money over the long-run. In order to make sure 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.

Refinance Car Loan with Bad Credit to Improve Your Budget

Another reason it is 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 could help. 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 loan.

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

The Best Solution


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

  1. Refinance Car Loan with Bad CreditBe sure to choose the right lender for you.– As mentioned before, 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 as well as 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 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. Once you decide that you could find better loan terms than the terms that you currently have, 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 the 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 before finalizing 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.

Auto Refinance Companies

Unlike many of our competitors, who work with a small handful of lenders and services, sell or lease their mailing lists and/or are only out to benefit themselves, Valley Auto Loans’ service 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 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 set up 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.We have a nationwide group of lenders offering the best possible auto loans 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, 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.

It’s Easy…But Be Careful!

Auto Refinancing PitfallsWith 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!

Apply for a New Loan

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

Car Refinance How To ChecklistIf 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 days to make your first payment after the closing. 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.

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 help improve their credit score. However, those interested in qualifying for a bad credit auto refinance must meet certain limits. 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 to refinance your auto loan with bad credit. 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 change the current title.

Find a Lower Interest Rate

Auto Refinance Interest RatesIf 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.

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.

Loan Term APR* As Low As
Up to 36 Months 3.65%
37 – 48 Months 3.65%
49 – 60 Months 3.25%
61 – 72 Months 3.50%
73 – 84 Months 3.65%

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 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.

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. 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.

General Requirements

As a general rule, 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.

Common Misconceptions

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

Valley Auto Loans does indeed have lenders that can approve you for an auto 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 FAQs & Tips

Vehicle 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.

Some auto 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, meaning the car is now worth less than the car loan. Another words 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 and 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. It may actually help your credit in the long run due to the reduced payments allowing you to make them more consistently.

Our Customer Reviews

Absolutely The Best

I just purchased a car with the help of Valley Auto Loans last month. These guys are great. I got the financing and was able to sign on the car within the week. I will never look for financing through any other company.”
- Michelle Parker

A Life-Saver!

I was at my wit's end not being able to come up with the final amount for a car before I found this website. Now I don't have to take buses and taxis all over town. I can ride around in my new car and it's all thanks to Valley Auto Loans!”
- Rose Marie

Great Experience!

This company helped me find a better rate at a new finance company. I realized I was paying far too much for my car at my old company and needed a change. Valley Auto Loans helped me refinance and ended up saving me a lot of money. Thank you so much!”
- Charlene Harber

Apply for Auto Refinancing

Sources and Citations:

Valley Auto Loans - Home