There are seasons of life when times are great, but lately, it seems like a lot of people have had it tough, and some people’s credit scores haven taken a hit as a result.
In some cases, refinancing with bad credit might be a very smart move.* It is a similar process to the refinancing of a home mortgage.
When you refinance a loan, it begins a new loan, and sometimes does so by fully paying off an existing one. In the process of beginning a new loan, the lender will usually check your credit and see anything that the report shows them, including bad or unpaid debt, foreclosure and bankruptcy. But there’s good news, too.
There are lenders that specialize in offering loans and refinancing to people with less-than-perfect credit. These companies are sometimes called “full-spectrum lenders” because on the bad-to-good credit spectrum. These companies are able to work with almost anyone, no matter where they fall on that spectrum.
RoadLoans is a full-spectrum lender with an easy-to-understand website and a reputation for fast and excellent service, specializing in car loan after bankruptcy and refinancing existing auto loans.
When you refinance car loan, you might do so with a number of goals in mind:
- You may want to lower your monthly payments to make your loan more affordable on a month-by-month basis.
- It may be your goal to get a lump sum of money by structuring a refinanced loan that results in your getting cash back.
- You may want to get a lower interest rate (APR) on your loan if your existing loan has a higher-than-desired interest rate.
- You may dislike your current lender’s customer service and customer account tools, and be looking to upgrade to a lender with better service and tools.
- OR you might be motivated to refinance by more than one of the above reasons, and try to structure your new loan to take a balanced advantage of more than one of the above benefits.
Well, if any of the above reasons for refinancing would motivate you to refinance, then you’re in good company. And with the opportunity to possibly enjoy any of the above benefits, you can now see why refinancing might be a smart option for some people.
Apply for refinancing today at RoadLoans.com to see what it feels like to get great service and use easy tools so that you can get back on the road with your mind at ease.
* “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.Written by: