How to Lower Your Car Payment with Bad Credit

    Valley Auto Loans

  • On October 30, 2017
  • Categories: Vehicle Refinancing

How to Lower Your Car Payment with Bad Credit (Last Updated On: October 30, 2017)

Low Car Payments For Your Auto Loan

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Saving money is a necessity these days and learning how to lower your car payments is no exception.

When it is harder to afford the payments for these basic living expenses, many want to know how to get small car payments with bad credit? Everyone is looking for ways to cut down the amount of cash he or she spends each month. For most folks, this mostly means cutting back on entertainment, going out to eat, and other luxuries.

Plan, Before Refinancing to Lower Your Car Payments

Planning an auto loan budget ahead helps you from losing the things you enjoy. For some, saving money also means refinancing a mortgage, personal loans or other installment loans. Seldom do people think about the equity in their car or “how to lower your car payment” with bad credit by refinancing a car loan.

You also could be unhappy with the auto loan you currently have. This, though, offers many benefits to people who need a lower car payment.

If paying down accumulated debt sounds good to you; Valley Auto Loans can help you turn that equity into actual cash and show you how to lower your car payment with bad credit. We can also show you why choosing the right cars for low-income auto loans helps get your loan approved with lower monthly payments.

 Auto Loans For Bad Credit With Monthly Payments

Getting auto refinance loans for bad credit with monthly payments that are affordable is a very simple process. Refinancing your existing car loan replaces your loan terms with a new loan.

This new loan can stretch out your payments, lower your interest rate and give you cash back if you have built up equity in your car. Best of all, you can qualify for lower monthly payments as well.

Some of the application benefits available to you for small car payments are:

  • Our online loans are easy to do.
  • There are no application fees from Valley Auto Loans.
  • You are not obligated to accept the loan offers you receive.
  • Searching for auto financing with a low credit score.
  • You can check your credit score online for free when you visit our resource page.


Weighing the benefits and drawbacks of auto refinancing will help you decide the best way to achieve lower payments and improve your credit even if you have no credit.

We will explain several different ways to lower your car payments including these listed here.

  • Refinance without paying more for your car.
  • Add extra time to your payoff period with new loan terms.
  • Use a down payment to lower your debt.
  • Refinance for a better interest rate.
  • Transfer your loan to a lease.
  • Trade your car for a lower loan.

How To Lower Your Monthly Car Payment – Things You Should Know First

There are some facts that will effect how to lower car loan payments for your present auto loan. Before considering to reduce your car payment with bad credit car loan refinancing, you should know what can affect your loan chances.

Consider the Present Market Climate

If the economy has come to a stall and economic growth is slow, there are some tremendous benefits you can take advantage of. Lenders will be more willing to work with you and help you lower your monthly payments on your installment loans.

Remember: if their starving for business, any client will do, even if your credit is in dire conditions.

Take advantage of this. If the economy is booming, lenders will not be starving for business and have more options. Thus, they will not be as willing to help you get low car payments with bad credit. Money lenders are not as willing to take chances if your credit presents a risk of default.

Take into account the market before you try to lessen your monthly car loan payment. What’s interesting is that you will have better luck in tough times to lower your auto loan payment and qualify for bad credit loans.

Consider What’s Going on with Your Current Loan

How can I lower my car payment if I am struggling to make the payments?

Ask yourself if the chances of defaulting on your car loan are high. If so, you have a better chance of being able to lower your car payment with a loan adjustment to help ease the burden. Why? It is simple. If you default, your lender will end up losing money on the deal. Thus, if a default is impending, a lender will help you refinance or extend the loan to help you avoid losing the car as well as make sure they do not lose out on the loan. Refinancing to make owning a car less stressful is a good option.

 Why are inexpensive car payments with bad credit a good deal for the lender? It is all about the dollars. The catch is that you are usually given a longer loan time and higher interest rates; your monthly payment may be lower, but you will end up paying much more in the long run.

How to Lower My Car Payment and Not Pay More For My Car

How to reduce a car payment and not pay more for the car, in the long term, will take a bit of planning. Let’s look at the different effects an auto refinance can have on your vehicle loan.

Refinance My Car Loan To Lower My Payments

Generally speaking, you can refinance bad credit loans if you currently have at least $7,000 to $8,000 left on the loan. This can vary according to the type of car and money lender.

Moreover, lenders also like to see that the vehicle has not exceeded 80,000 to 100,000 miles. This mileage limit ensures that the car is still in good shape and will hold its loan value. The loan amount minimum ensures the lender has the motivation to help you with a new bad credit loan.

Can I Get Cash Back and Have a Lower Car Payment?

Yes. If you have enough equity in your car, we can offer you a real life example of getting the equity out of your car in cash and get a lower monthly payment. This example is found in our page for refinancing your car to pay for a lawyer retainer fee or other legal fees. This example works well for any unexpected bills or expenses you need cash for.

Bad credit personal loans are harder to get than bad credit refinancing loans. Refinancing your car loan can give you a way to put money in your pocket for paying down debt.  It is better than a personal loan because it has a lower interest rate.

Lengthen Your Borrowing Period

There are several methods you can use here to lower your car payment. You probably just wish you could wave a magic wand and say goodbye to the loan balance. It is too bad that you cannot, so you are stuck with practical methods. Furthermore, the good news is that, even with poor credit, you have options. The most popular option for bad credit borrowers to achieve low monthly car payments is to extend or refinance your bad credit loans.

Like anything dealing with loans, trying to lower your car payment has its pros and cons of refinancing a car to do it. The good thing is that a loan adjustment can help with car payments by lowering your car payment each month and make your financial life easier. You just pay over a longer period.

This can help bring up your credit score, make it easier to get a loan for other things and decrease overall stress in your life.

Refinance My Car Loan to Lower Payments

This could save you thousands of dollars if you have managed to keep up on your car payments from the time your loan began until now. Perhaps when you purchased your vehicle your financial situation was not as good. Now you need to know how to lower a car payment. Either way, you should be able to get a new deal from your lender or another lender. You will have a better opportunity if your credit has improved recently. Get a free online credit check.

If you know your credit score, you can use tools like a car payment calculator to view an estimate of your payments after refinancing.

Often, a second financial institution will offer a slightly lower interest rate than the first lender to get more business. The only way to see if you can get a better interest rate is to apply for auto loan refinancing at some lending institutions and compare the rates. If a bank or credit union has not been receiving a considerable amount of refinancing applications from bad credit borrowers, your chances of getting a new loan and being able to lower your car payment will be even higher.

Consider a Lease

If extending your existing loan or refinancing it is not an option or proves too difficult, you still have other options. It is not the time to cash in your chips just yet.

Try one of these simple ways to lower a car payment. The good thing about a lease is that it usually entails a lower monthly amount than a refinanced loan. You typically only pay about half of the value of the car over a specific period. Low down payment car dealers offer leases to those with bad credit. The bad thing is that you have to return the vehicle and are left without any equity once the lease expires or you can purchase the leased car after the term is up, but you will have to get financing or buy it outright. There is also a rent-to-own alternative to leasing a car that could be more beneficial for you.

Can Refinancing My Car Hurt My Credit Score?

That all depends. Each time you apply for a loan, your lender will do a credit check that will be a hard pull on your credit report. This usually lowers your score by five points. After two years that penalty will drop off your report. Five points are not much sacrifice if you are going to drop a couple of points on your interest rate. The money you save will be a good trade.

Using a loan broker like Valley Auto Loans eliminates countless credit checks. They review your application with many lenders who choose the loan for your specific needs. Then they do a credit check. This system finds the best loan deals for you without you having to do the loan searching yourself.

Where You Should Apply For Lower Car Payments?

There are tons of lending institutions in local areas as well as online agencies that will provide low car payments with bad credit refinancing. The great thing about online lenders like Valley Auto Loans is that you can apply for free and see the new loan before you accept or decline.Valley Auto Loans uses a simple loan application that you can fill out from your phone or mobile device.

Before you decide on a loan, compare at least five different lenders who offer online loans and see which new loan is the best for you. You can go online and to credit unions and banks. Consider how much you will pay over the course of your loan and what monthly amount suits your budget best. You want to be able to make payments, but you also don’t want to be paying off the car for what seems like forever.

How To Get A Lower Car Payment On Your Lease

If you are currently leasing a car, getting a mile limit can help cut down the monthly payment. Dealerships do this because it makes certain the car has a higher resale value once returned.

Sell Your Car

This is difficult. You want to talk to the lender first. Moreover, you need a buyer that trusts you. There are a lot more ins and outs, but it is possible. For example, the buyer can pay off your loan balance and give you the remaining amount on the deal. Your lending institution then can send the title to the buyer’s lending bank or the buyer if there is no loan involved.

We know that everyone’s credit situation is different. The market is always in fluctuation. There are lots of factors that can influence low car payments with bad credit. It is vital that you take into account your current situation and the feasibility of extending your loan or refinancing.

Make sure to consider the benefits as well as the negatives. Knowing “How can I lower my car payment if I have bad credit” without long term consequences is the key to financial recovery. You can also see our many useful “How to” subjects that we have listed that any car owner should read to save money and get you out of trouble with your vehicle.

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