Refinancing my car
Car loan and auto loan refinancing is fast and easy and it also works in the same way like home refinance. I have bought a car on bad credit and I after some time I wanted to refinance my car loan. I was surprised that a person like me with a bad credit could have his car refinanced and also. It doesn’t mean that you need to be a good candidate with a good credit score to have your car refinanced.
Usually I was recommended to try to refine the car loan with a more traditional refinance product – the mortgage refinance loan. I could refinance my mortgage and consolidate car loan into a new loan. The big benefit that I could have gotten are lower interest rate and tax deduct which means that is much more effective then a new auto loan. For this I could have applied online too. But the problem appeared because I had bad credit auto loans record, so this was a big NO for me.
When I both my car, almost a year ago I could find the best financing deal because I needed a car very bad and my credit was bad too. I both the car with subprime auto loan, and that was my only way. Buying the car through car dealer which takes a lot more interest rate then lenders or financing source. With that I got higher interest rate so I knew after some time paying my monthly credit payment could ask for refinancing. But again my credit wasn’t good at all. I put myself in a good search to find a dealer who will accept car refinancing on bad credit. It was a bit hard to find one but I reach my goal.
After that the car loan refinancing was easy. My car loan was accepted because my payment has been on time and never late. The refinancing wasn’t something much but it was a good start. I am planning after I build a good credit rate I will turn to lenders and other sources. After the approval my previous loan was paid off by my new car loan and from that time I had a new loan. I was so pleased of my new monthly payment it was really a big difference. Because of the lower interest rate I saved a lot of money.
As early as can be
So if you have a car on bad credit and you still haven’t thought about refinancing your loan, than you must think about it now, you will save a lot of money plus you will start building you credit rate. With the car loan refinancing, you will pay off your current car loan with a refinancing car loan. But this time the loan will come from a different lender with a lower percentage rate, and will you’re your monthly car loan payments less because the interest rate has dropped and allowing you to pay off your car loan in a shorter span of time.
I am lucky that I made my refinancing early which is very important, because the interest in car loan is paid in the first few months. If you manage to make car loan refinancing early more money you will save. I also kept in mind that some loan contracts charge the interest as a finance charge which is regardless of whether the loan is paid off early. I read the contract very carefully and I am trying to pay off the loan as fast as I can in order to skip having high finance charges.
I Can Refinance my Car with Bad Credit
It was a time for me when I needed to save some money and I have tried so many ways. Just like other people and families I tried to cut off some expenses so that I can live on less income. I tied downsizing my home, I reduced my spending which after that included only necessities, and I tried making meals at home rather than eating out, and other live expenses that I could find. It never came up in my mind about my car loan. So the next thing I rush to do it was refinancing my car, which will reduce my monthly payment, I didn’t know that I can do that because of my bad credit.
What do you think is it possible to refine a car with dab credit and will the process being difficult and ling? I was familiar about refinancing a mortgage loan but I wasn’t for car refinancing. It was actually a bit harder because of the bad credit, not that easy like for those people that have a good credit score. The subprime loan actually requires more than the usual protective method in order to reduce the risk of default of the lender. But still there are cases with bad credit car loans are refinanced dozens of times a day. I got my car with no credit check car loans; whit probably this time will be needed. Lenders are willing to make these loans because the car serves as collateral and car owners will desperately do whatever it takes to keep their cars. Transportation is not a luxury but a necessity in today’s society since public transportation is not always available.
What are the Good Reasons to Refinance a Car Loan?
The reason that I needed refinancing was to reduce the monthly payments. With that I got more money for other expenses which were more important for me. I was aware that the refinancing will lead to higher interest rate and longer payback time but I really needed it.
With making a refinancing I am on the way to improve my credit rating. But also I need to make my payments on time which will give me the advantage for building the credit. My lender was specialized and he helped me to improve my credit rating and reported me for my timely payments monthly to more credit bureaus. When interest rates are much lower than when you first financed the car is a good time to refinance. This is an important area to watch. You may need to pay a higher interest rate than before if you have a lower credit score than before.
I am now waiting for my credit rating to be improved so that they can reduce the interest rate and which also will reduce the monthly payments. I found lenders that are more flexible when the number of applications for refinancing is down which can happen any time. I didn’t have time to wait, but if I had I could have started the application early to search for best deals.
Remember that lenders are refinancing auto loans almost every day as awareness of this method grows. Reducing monthly payments is the one of the most popular reason for this type of loan to happen. I have also improved my credit score by using the money I have saved by refinancing my car to pay out other depts. Start from today if you need more money, make a good research for better lenders.
I had to use a high risk auto loans in order to buy a car, after some time I realized I needed to try and make refinancing for my car even that I had a bad credit score. Actually refinancing a bad credit car loan can be simple if you do a good research and follow some tips that you can find. It is very simple, I will be borrowing money to pay off another depth, and with it I saved a lot of money because previously I was paying more interest rate.
Tips On Refinancing A Bad Credit Car Loan
I didn’t need to get my car appraised before refinancing, because the refinancing amount is based on how much I owe and not how much the car is worth, the lender is actually concerned how much money I needed to borrow. Because I was refinancing on a bad credit loan I needed to make sure that I was on time with my payments. My credit score was starting to go up and got higher form when I originally financed the car. I knew that the interest rate won’t be as low as for those who have a good credit score but again it lowered my payments.
When refinancing a bad credit car loan, you must:
- You are least 18 years old;
- You are a legal resident.
- That you have a car that wasn’t manufactured more than 5 years ago, but with some it can be 10 years too.
- The car should be with less than approximately 70,000 miles (sometimes more with different companies);
- The lender will make the refinance a bad credit car loan if you have a gross income of at least $2,000 a month. Refinancing a sum that won’t exceed a predetermined amount.