How To Refinance A Car with Bad Credit, Good or Great Credit

Bad Credit Auto Refinancing Services

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Refinance Auto Loans and Bad Credit Car Refinance

Deciding to refinance a car with bad credit has many benefits you can take advantage of like,

Benefits of Refinancing with Valley!

  1. Lowering your car payments.
  2. Turn equity to money with cash out for paying other debt.
  3. Get a lower interest rate with better terms when you refinance car loan.

Refinancing a car with bad credit will allow you to enjoy all of these benefits in the same car loan. These advantages are why many people find that personal loans for needed cash cannot provide the same benefit. They also cannot provide as low of an APR that refinancing can offer if you have bad credit.

Do not add additional installment loans or payments to your budget if you need cash or want to consolidate debt. Use credit wisely and use new car loans to work for you. By refinancing to turn the equity that is in your vehicle to cash. If you need cash quickly refinancing the loan is almost always a better choice than short-term loans.


Valley Auto Loans specializes in bad credit auto financing. We are widely known as one of the top “car loan refinancing” loan brokers in the nation.

Your goal with any refinance auto loan should be to get a lower APR. Along with that, you will see lower payments and improved credit score without the risk of further damage to your credit history.

If you are looking to get the equity out of your car loan, then you have found the best company to refinance auto loans with bad credit!


People that have needed cash for other expenses have taken out personal loans only to find out that they could have done much better by refinancing a car with bad credit.

Take a moment to read the information below which explains how to refinance a car and the car refinancing process along with refinancing car loan “pros and cons.”

We want you to make an informed decision about the car refinance offers you receive to get the best possible replacement loan.

Refinance Car Loan with Bad CreditRefinance Car Loan with Bad Credit

Valley Auto Loans strives to help you find the best APR rates and friendly lenders for your auto loan refinancing.

We Will Explain “How to Refinance A Car Loan” in Four Easy Steps.

  1. Know the benefits you want and the best time to get a bad credit refinance auto loan.
  2. Get your free updated credit score and estimate your payments to compare interest rates.
  3. Best company to refinance, easy application, apply online and meet the minimum requirements.
  4. Review your loan offer and gather the required information for the best loan terms.

Because we search refinance lenders for you, we offer you the ability to apply online with one simple application. Your auto loan refinancing request will be reviewed by many lenders to find a lender ready to offer a better car loan than the one you have now.

We charge no application fee, and you are not obligated to accept any auto loan refinance offers.

Valley Auto Loans is one of the best car refinancing companies available today, even for those with a bad credit history. We can help you:

  • Refinance a car with bad credit.
  • Find a great rate for your unique situation.
  • Also, skip a payment in the process.

We can also answer any questions you have about refinancing your car loan as well as many other topics about auto financing and refinancing a car with bad credit.

You may also want to check out our regularly updated blog posts from industry experts. We offer FAQs and other resources to help you with decisions about car ownership, auto financing or personal finances in general.

If you have any questions about buying a new car, negotiating prices or selecting a good used car, you should see our “new car buying guide.

Consolidate Your Debt

Consolidate Your High-Interest Debt – You may have credit cards or personal loans with sky-high interest rates. If so, you can apply to refinance your car loan for a lower interest rate. Also refinance your car for its full value and use the equity from your car loan to pay off your higher debts or other higher interest loans that you have.

Consolidating your debts can lower your payments and put extra money in your pocket at the end of each month.

Free Up Money

Free Up Money for Major expenses, Home or Auto Repairs – Unexpected expenses like divorce, attorney fees, repairs to your car or home can happen at any time. Instead of waiting weeks for the bank to approve a personal loan with high interest, why not refinance your vehicle and get the money you need in a matter of hours?

Auto Refinancing

Auto RefinancingYou do not want minor repairs turning into major headaches just because you could not get the money in time. Even worse, waiting too long could force you into the position of selling the car you love because you do not have the cash to fix the transmission or make other major repairs.

If you find yourself needing legal assistance for a divorce, we can show you how to create a plan to pay for any child custody lawyers and divorce and lawyer retainer fees by refinancing a car with bad credit.

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 car payment. Lower monthly payments may result if the principal owed on your car is less than the original amount borrowed.

For example, an 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 in interest. Many consumers still prefer this option to free up money and lower the payments for their essential monthly and annual costs. This method also reduces the possibility of missed or late payments.

Lower Your Interest Rate

Start Over With a Better Interest Rate – Did you have subprime credit when you bought the car? If so, the chances are that your FICO score is not as bad as it was then. If you have a FICO score between 620 and 600, your credit is less than perfect so 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 entirely possible.

Auto loans for poor credit are good to start with but as your credit improves, you should try to lower your interest rate by replacing your present loan. It is easy to qualify for a refinance loan with a better interest rate.

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 lower your monthly payments dramatically if you can afford to add a down payment.

Skip A Payment and Get Cash Back

refinance auto loan with bad creditrefinance auto loan with bad credit

The refinance process pays your old debt and allows you to skip a payment – During the time the new loan is put into effect you could be eligible to skip a payment during the interim. This saved money along with the money the refinance loan provides, adds up to a nice chunk of usable cash.

You may have been required to provide a substantial down payment when you originally purchased the car. There are times when a car has equity in it, and by refinancing, you can draw the capital out of the car in the form of cash.

Your cars make, mileage, blue book value, and condition will decide the amount of equity money your car has. Even at higher interest rates, it may still make sense to refinance.

refinancing with bad creditrefinancing with bad credit

Using the equity to get cash back to pay off higher interest rate credit cards or loans could make financial sense. Your first step is finding out what your interest rate will be for a bad credit refinance. Then finding out what your car is worth and what you still owe for the payoff. This will be the amount of equity your car has and will make an equity swap program possible.

Skip A Payment – To refinance a car loan with bad credit means you will also be allowed to skip a car payment during the process. Your first payment may not be due for up to 60 days and could put cash back into your pocket.

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

Raise your credit score – If your credit score has increased since you took out your bad credit car loan, great! If not and you have credit accounts that are near their limit, you still have a chance to increase your credit score.

By calling your credit lenders and asking them to increase your credit limit, you could increase your rating. As your credit limit goes up for each account, your amount of available credit increases. This increase in your debt to equity ratio automatically increases your credit score and lowers your interest rates for new loans.

Many lenders suggest clients do this before taking out a personal loan to get the lowest APR available for their credit rating.

Choosing to refinance your car can save you a substantial amount of money over a personal loan. In a previously poor credit situation, the borrower can get a new loan that reflects their new credit rating.

The new loan offered can have a lower interest rate. Refinancing 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 rating to give you better APR terms on your vehicles refinance. More affordable payments can lead to an improvement in your FICO scores because most lenders send payment reports for an auto loan refinance to the credit bureaus.

Refinance Auto Loan With Bad Credit, Pros and Cons


  • The primary advantage to refinance a car with bad credit is lower your monthly car payments to save money over the term of the loan. – Lower monthly payments can be achieved in a couple of different ways.
    • Extend your loan term so you pay less each month over a longer period.
    • Paying a sizable down payment on the new loan.
    • Qualifying for lower interest rate.
  • Turn some equity to cash or consolidate debt. – In a roundabout way, you are using your equity to secure a larger, car refinance loan to get the cash to pay down other debt.
  • Get a new loan with a lower interest rate. – Take advantage of dropping interest rates, and you can pocket the money you will save.
  • Allows you to skip a payment. – Your new, car refinance loan, will start with your first payment the month following the refinancing.
  • Refinancing your vehicle is easier than dealing with mortgage lenders. – Everything can be done quickly online when it is convenient for you.
  • You can refinance your car loan at any time if you change lenders. – Most banks will not be interested in lowering your interest rate on a car loan you are presently paying on because they already have you locked in at a higher rate, but a new lender will go the extra mile to get your business.
  • Give you time to find a car refinance lender in your own time and take the time to decide if the loan is right for you before committing to it. – Most people took the only loan they could get from the dealer at the time they bought the car. However, now you have the advantage to shop online for a car refinance with a better interest rate and lower monthly payments.


  • Applying for a car loan multiple times over a short period can temporarily lower your credit score. – One credit check can subtract up to 5 points from your score. – Each credit inquiry by a lender over time for a separate loan is a hard pull on your credit report and will lower your score by 5 points. This penalty will drop off your report after two years. By keeping your car loan applications close together, you eliminate multiple credit penalties.
  • If you are refinancing a car that was originally purchased new, the car is now considered a used car and has dropped in value (check what you owe vs. the value of the car). – Compare your vehicle’s resale value to what the new loan amount will be to know where you will stand with the equity you will have. You can also estimate your monthly payments with a car payment calculator to see the overall cost of the loan. (Visit our resource page to use our payment calculator)
  • In most cases, you will take longer to pay down the extended loan thus you will pay more in interest. – As an example, if the new loan will reduce your payments by $20.00 but add two years to the payoff, you can see the additional cost is more than you are going to save.
  • Lenders will not finance older or high mileage cars. – It is hard to find a bank that will lend money to a car that is over five years old, however; we have lenders that will lend up to ten years and under 100,000 miles.
  • Your current car loan may have early payoff fees. – Check your current loan to see if you will be charged penalties for paying off your loan before the completion date. Pre-computed Loans require the interest to be paid along with the principal.
  • If your credit rating has dropped since your last car loan, you could end up getting a higher interest rate. – If you have some charge-off or credit issues that have caused your credit score to drop, you will want to fix those first before you apply for an auto refinance with bad credit.

Valley Auto Loans Keeps Your Credit Rating Safe

Applying for an auto loan multiple times over a period of time can hurt your credit score. Some companies will transfer your application to many different lenders who will run individual credit checks (also known as loan application aggregation).

With one application, we review your bad credit car refinance loan with our specially chosen lenders to find you the best rate. Then a credit check is performed after you have been chosen by a lender. This provides you with the benefit of having lenders compete for your business with a single credit inquire.

Refinancing your car with bad credit can make a good bit of financial sense, under the right state of conditions. A bad credit auto refinance can free up a significant amount of money or save money on future payments.

Refinancing your car or truck has many of the same advantages as 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.

Deciding to refinance a car with bad credit can be very simple 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.

How Do I Know When To Refinance My Car?

There are many reasons to refinance a car loan, but when is it important to refinance?

  • You may have purchased a car and at the time thought you were getting a fabulous interest rate. Then you found out later that you could have done better.
  • Maybe you need to lower your car payment to decrease your monthly expenses. You find yourself with a car loan that needs to be paid off or refinanced with a lower monthly payment.
  • Perhaps you want to take advantage of our improving economy and get a lower interest rate (APR) than you currently have.

With that said, the next question is:

How soon can I refinance my car loan or when should I refinance my car loan?

How soon can I refinance my auto loan after purchasing the vehicle?

Typically lenders want to see 60 to 90 days from when you received your original loan. It takes time to get your title, transfer it correctly and other miscellaneous items. Because the title will be going to the company you will be refinancing with, they will require this before finalizing the new refinance loan. In short expect about 90 days, or 3 months, before refinancing after you have purchased your car, regardless of bad credit or good.

Other Frequently Asked Questions, that we will answer in more detail in this full guide, are:

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 a person 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. However, be careful what you agree on because the money they offer is being added to your car loan. In many cases, this will put you upside down on 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 are additional fees added for this.

Can I choose to do bad credit auto refinancing if I have had a bankruptcy?

Yes. If you are currently in an active chapter 7 or chapter 13 bankruptcy, you will need a letter from your trustee granting permission to take on this debt. To get this letter, just 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 open and closed bankruptcy programs.

Can I qualify for bad credit auto refinancing if I have had a car repossessed?

Absolutely. We have many existing banks that work with this situation.

Is refinancing a car bad for your credit?

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

When Should You Refinance Your CarWhen Should You Refinance Your Car

Having a conventional car loan, meaning a car loan was held by a bank or lender and not a Buy-Here-Pay-Here dealer, allows you to apply for a car refinance with bad credit at any time. However, you should only do so for the right reasons.

When you apply for a bad credit refinance, be sure to keep in mind, there may be a hard pull on your credit report. If you are already struggling with a bad credit report, you need to consider your reason for refinancing and if the hard inquiry is worth a refinanced auto loan. Remember to keep all your car refinance applications close together to prevent credit penalties.

The second point I want to make is that, if you are refinancing a car loan that was originally for a new car, the lender will see the vehicle as a used car and dropped in value.

With all new cars, you will be upside down on your car loan the minute you drive off the lot unless you paid a tremendous amount down. In time, the equity in your vehicle catches back up with the value of the car as you make payments. This is one of the reasons you want to pay off the car within a few years, so the car still has resale value when the loan is paid off. Many lenders charge a higher rate to finance a used car versus a new car loan.

Remember The Fees!

The third point to remember, are the loan fees. If you are refinancing a loan you have had for a while, the loan costs are justifiable, but if the car were just recently purchased, you would be paying the loan fees all over again. If you are stuck with an awful loan, the loan fees are nothing when compared to the money you will lose from the high-interest rate over a period of several years.

When is a good time to refinance my loan?

If you can find financing that is at least 2 points lower than your current car loan, you could consider car refinancing. If your credit has improved since you took out the loan, you may qualify for a lower interest rate.

If you have good credit, you should be able to secure a loan below a 6% interest rate. If not, you may want to check into bad credit refinancing. It is common to find rates around 18% for those with bad credit, but use a loan calculator to help you decide if it is worth the effort to refinance a car when you have bad credit.

You should always get an updated credit report before applying and repair any incorrect items on the report if possible.

If you just purchased the car and did not like the deal you signed for, do not despair.

First off, you have to make a few payments at the higher interest rate until you find a company to refinance your car loan. The difference will be minimal if you are only changing your interest rate by a few points. You will save more money if you do not rush into the next loan.

The bank or lender you currently have, will probably not be interested in refinancing the auto loan unless several years have passed, and you have a better credit score. So you will need to shop around for a better bad credit auto refinance loan and remember too many hard inquiries will hurt your credit score.

One misconception some people may have with any loan is that if you make a larger monthly payment each month, your credit rating will go up. Just making more substantial payments in itself will not bring up your credit score. Just make sure you make the payments on time and do not miss any payments and your credit score will improve.

Pay Off The Auto Loan Sooner

Now if you can afford to make larger payments, you can pay off your car loan sooner, and that will bring up your credit score.

Any time you pay off a line of credit, your score will improve. Alternatively, you could save up the money you would be paying extra each month until you have enough for a 10% down payment. Then, refinance the car loan you have and give a 10% down payment. This could get you lower payments and a better credit score.

 Adding a down payment to a refinance car with bad credit loan is a good way to get out of a past car loan that has negative equity.

What to Expect With a Bad Credit Auto Refinance From Valley Auto Loans

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

Refinancing an Auto Loan with Bad CreditRefinancing an Auto Loan with Bad Credit

The lender will contact you through a call or email if any additional information or resources are 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.

If your car refinance loan is approved, you can review your new loan agreement information and decide if this fits your budget. If you agree to the terms of the documents and disclosures, the lender will take care of your old car loan payoff process and title transfer. The lien, at this point, will then be moved from the old bank to your new lender.

You then start making auto payments to your 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 stage. Refinancing a car loan is similar to getting the first loan on your vehicle. The process is very straightforward and direct, and you can start enjoying the lower auto payments now.

Common Refinancing Misconceptions

Many misconceptions discourage applicants from pursuing a vehicle refinance with bad credit.

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 pay.
  • People who need a lower car payment to get out of debt faster.
  • Applicants with a low-income.
  • Candidates 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.

Simple Requirements For Refinancing a Car With Bad Credit

Car refinancing with bad credit is an attractive alternative for many because it can reduce monthly auto loan payments to be made by the car owners. 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 car owners 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 vehicle loan with bad credit. These are:

    1. The Payoff

      Payoff amount and remaining term of the current car loan.

    1. Your Proof of Income

      Proof of Income such as a paycheck stub or other form of documented income.

  1. The Vehicle Title

    Vehicle Title or Limited Power of Attorney to change the current car title.

Bad Credit Auto FinancingBad Credit Auto Financing

There are many circumstances where doing a bad credit car refinance would be a wise choice. These things include, but are not limited to, the following:

  • Being unable to afford the monthly debt payments of your 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 of the equity in the vehicle.
  • A recent financial setback such as a job loss, medical expenses or needed legal fees.
  • You were previously leasing the car and would now like to purchase it.

Car and Truck Refinance Options with Bad Credit

By choosing to refinance your current bad credit car loan, you can reduce the cost of monthly expenditures.

When you first financed your vehicle, you may have taken a loan from the car dealer. Your credit at that time may not have been superb, and you took what was offered to you.

Now is the time to replace that loan. We refinance many different types of car loans including car loans for bad credit and low-income.

Most people with bad auto loans did not shop around for the best loan possible.

When bad credit applicants initially financed their car, they consented to a very high-interest rate. Some lenders specialize in bad credit car loans and have competitive rates for those who shop around.

They did not know there are better deals out there.

The loan provider charges more to offset the risk associated with the high risk auto loans. Car loans with no credit checks are notorious for charging outrageous interest rates.

However, with consistent payments made over time, your credit score will have improved. Then it is possible to negotiate the lowest interest for their bad credit, car refinancing 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, merely reducing this by a few percentage points could mean the savings of thousands of dollars over the course of the loan. In this way, bad credit car refinancing online is an excellent idea, according to the FDIC.

Have you walked into your local bank and told the loan officer: I want to refinance my car with bad credit? We are sure their response was not too encouraging.

Many local banks and credit unions prefer the good 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 can provide auto refinance for poor credit customers. We also provide financing for better rates than the local bank or credit union for those with credit issues.

Buy a Car From a Private Seller with Our Auto Refinancing Application

If you need bad credit car financing to purchase a car from a private seller who is not a dealer. If your credit is lousy, and you cannot get a conventional car loan or a personal loan. You can fill out an auto refinance application from Valley Auto Loans and use the money to buy a car from whoever you like.

Provide the correct information:

  1. You will need to select a vehicle that is less than ten years old and valued over $7,500
  2. You will need to gather all the car information, like the make and model, the mileage.
  3. You will need to show the amount you need to borrow for the car.
  4. The loan amount must be at least $7,500.00 or more.

If you are buying a car from a private individual, be sure to check out the car thoroughly. You can use online tools like CARFAX and Carchex to research the history of the vehicle or get an extended warranty.

We also have a “used car buyers” guide that is full of helpful information on buying a used car even if you buy from a dealership. Valley Auto Loans also provides a vehicle search tool for you to use that is free of charge.What Is The Equity of My Auto Loan?”Equity” refers to the difference in how much your original loan amount was and how much the underlying asset is 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 car refinance is a brand new loan, that replaces the old one, the refinance process can give you your capital as one big check.

When you submit an application and get a new auto loan from a car refinance company, they will then pay off your old loan and extend to 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 refinancing 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 could not 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 truck payments, and it looks as if you will need to sell your vehicle. Before you do anything so drastic, look at a few facts below:

  • When you signed the loan papers in the dealer’s office, you probably didn’t shop around for a good auto loan rate because you were in a hurry to take your truck home that day.
  • You also did  not do any maintenance on your credit score first before you went truck shopping.
  • Worst of all, you probably tried to get out with as smallest of a down payment as possible.

However, don’t feel sorry, most people make these same mistakes every time they walk into a car dealership. 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 will not have to sell your vehicle.

  1. First, we can show you how to repair your credit score easily.
  2. We can also review your bad credit car refinance application with many lenders to find the best rate for your credit.
  3. Then you will have time to analyze 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 current truck loan down to payments you can live with.

You Want a Better Credit Score

Subprime auto loans and auto refinancing with bad credit are great news for manyEven 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.

If you have several open credit lines that are near their credit limit,  this will cause your credit rating to drop because the lenders see that you have reached your given credit limit.

A quick way to fix this is to contact your credit companies and request your credit limit be extended. If you have been a faithful customer for a few years, they will probably increase your limit. This will automatically give you a better credit score because you are now further from your credit limit.

Any other time you need your credit scores, 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.

Bad Credit Car Refinancing After Bankruptcy

Valley Auto Loans believes that you can turn your financial history around through car loan refinancing 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 bad credit car 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 car 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 FAQs section to highlight all your potential questions. The quote process is entirely free of any obligation to purchase. 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 Car Refinance Loans

If your instinct is to look solely at how a new investment 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. The Length of The 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. 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 and look for “interest only” for the first term or a balloon payment due at the end. Both of these will cause potentially overwhelming amounts owed later on.

If a bad credit auto 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 have 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 does not mean it is impossible to refinance an older car, but it does take more work to find the right loan. If the vehicle was new when you first bought it, this is likely not an issue. However, if you purchased an older used car, you probably won’t get as low a rate.

Pay The Car Refinance Company Early

If you do not, always pay on time. Budget yourself for an early deadline, say two weeks early. Then being five days late will still mean you are early. Depending on the structure of your loan, this can even save you some interest paid over time.

Set up Automatic Payments

Manage your payments automatically. 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 a 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 to improve one’s credit score and reduce the risk of repossession. When refinancing for credit reasons, be sure 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

How do I refinance my car quickly?

To have the best experience possible when refinancing a car quickly with poor credit, we offer these refinance car loan tips:

  1. Be sure to choose the right lender for you. – Once you submit your application to 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 auto financing options. There’s no obligation on your part to refinance. If you do not like the loan options details 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, and it is a better auto loan than you have now.
  2. Make use of our auto refinancing calculators. – This will give you an idea of how much money you could be saving over time as well as how the different auto financing options (number of months, cash out, a decreased interest rate just to name a few.) will affect your monthly payments. An auto refinance calculator will show you the tremendous benefit of paying as big of a down payment as you can afford on your new loan.
  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 whom your vehicle is currently financed through, mileage, make, model and year of the vehicle. Go ahead and get these documents together and review them now, it will cause the process to go faster and easier in the end. If you are self employed, you will also need to show your 1099 for the past couple of years.

Evaluate Your Options First

The first step to getting started 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.

You may have had no credit history when you first took out the loan and now you have built some credit. Many students experience this after getting student car loans. They find they can refinance the loan later for a better finance rate.

In many ways getting your loan refinanced is quick and 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 that 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)

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 expert bad credit auto refinancing companies, and we take pride in being the best company to refinance car loans with bad credit that you will find.


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

Best Auto Refinance Companies PhotoBest Auto Refinance Companies Photo

We 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.

It is our goal to educate and assist customers in any way we can. We have a national group of banks offering the best auto loans and refinancing options available for any consumer 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.

The only way to see if you can get a better interest rate is to apply for auto loan refinancing. 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.

You can also find lots of answers to many automotive questions on the resource page like “how to fix a flat tire yourself,” “jump-starting your car with jumper cables” or even “how to get better gas mileage.” The resource page is a must for anyone thinking of shopping for a new or used car.

OK, we will admit that people think of us as a place to get great auto financing deals. However, did you know Valley Auto Loans provides other useful information as well?

For instance, Our resource page has practical information on setting up a simple budget that will help you find extra spending money each month and add flexible budgeting methods to your budget accounts.

We can also show you how to get the most for your trade-in at a dealer or if you chose to sell it yourself. This is why we strive to be your one-stop auto loan broker when it comes to refinancing or any of your automotive driving needs.

It Is Easy…However, Be Careful!

Bad Credit Auto RefinanceBad Credit Auto Refinance

With the new age of smartphones 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 unfortunately develop a particular website to profit simply off of the information provided. We have gone the extra mile to deliver 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 is it. It is all in the family here!

Find a Lower Interest Rate

Refinance with Bad CreditRefinance with Bad Credit

If 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 on 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 average 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 many different banks and institutions to provide auto financing for bad credit to 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 AsUp to 36 Months3.65%37 – 48 Months3.65%49 – 60 Months3.25%61 – 72 Months3.50%73 – 84 Months3.65%

Fixed Rate

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 potentially an increase in their 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 car loan, or the principle of 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 can profit from a loan even when they are paid down quickly or refinanced.

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. This could prevent you from refinancing.

General Refi Requirements

For most lenders, the applicant will need to meet the following minimum requirements to refinance their poor credit auto loans.

General Requirements for Car Refinancing

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

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