Believe it or not you may be able to refinance an auto loan with poor credit.*
There are plenty of lenders out there who may refinance an auto loan with bad credit, you just need to know where to find them.
Credit problems can happen to anyone. Sometimes, unexpected events come along that make credit problems unavoidable. Job loss, illness, bankruptcy, divorce; any one of these can cause financial hardships that lead to bad credit.
Unfortunately, once your credit is poor, it can be very difficult to repair. If the only way to get your current vehicle was to accept an outrageously high interest rate, don’t despair. If approved for refinance, you may be able to lower your monthly payment by lowering your interest rate. Even a one percentage point improvement in your interest rate may give you a decent monthly saving.
A great way to help decide if you should refinance an auto loan with poor credit is to use an auto loan calculator. While you won’t yet know whether you’ll be approved for refinancing, and what interest rate you might get, the calculator enables you to estimate just what a change in interest or loan term will do for your monthly payment. By using an auto loan calculator you can compare different interest rates and loan lengths very easily to see what might work for you. After you have a better idea about what refinancing your auto loan may do, it is time to shop around for lenders who offer the best rates to people who want to refinance an auto loan with poor credit. You can find many of these lenders online and you may want to consider a lender who specializes in providing loans to people with poor credit.
Applying for auto refinancing online is very easy. Unlike a home refinance, there are no appraisals or inspections required; no application or refinancing fees. You simply fill out an online application and receive an instant decision. In just a short amount of time, you may be able to reduce your current interest rate and start saving money. Now may be the perfect time to refinance an auto loan with poor credit.
* “Bad” or “poor” credit generally is considered a FICO score around 600 and below by sources including the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press), Bankrate.com, Credit.com, Investopedia, NerdWallet.com and others. The Congressional Budget Office identifies a FICO score of 620 as the “cutoff” for prime loans. FICO scores are not the sole factor in lending decisions by RoadLoans.com and Santander Consumer USA.