Can You Refinance a Car Loan With Bad Credit?
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Can You Refinance Your Car Loan Even If You Have Bad Credit?
What Is a Bad Credit Score?
Is It Smart to Get an Auto Loan Refinanced With Bad Credit?
When Should You Refinance Your Car?
If Your Credit Score Has Improved. Ideally, you've been taking steps to improve your overall credit record by paying bills on time, reducing debt, and catching up on past accounts that are due. A higher credit score can improve your chances of qualifying for a loan with a lower interest rate and better terms. It’s helpful to check your credit score periodically, which you can do through many credit cards and financial institutions, to see where you are. When Interest Rates Are Dropping. Whenever car loan interest rates are down could be a good time to refinance your car. This is especially true if you have a few years left on your car loan and you can lower the interest by a few points. Refinancing to a rate that’s lower by 2 or 3 percentage points could result in savings that will really add up over the length of your loan. When Your Car’s Value Is Still High. Check out sites like Kelley Blue Book or Edmunds.com to see what your car’s current value is. If the car’s value has dropped significantly and you owe more than the car is worth, it’s usually not a good idea to refinance. If the car is holding its value, this may be a good time to refinance it, assuming that interest rates are lower than they were when you bought the car. If You’re Struggling to Make Your Car Payments. When your auto loan interest rate is very high and you still have a few more years left on the loan, refinancing could be an option to reduce your monthly payments and help free up some cash in your budget. You may want to seek out a service that will compare auto loan refinancing options for you.
Comparing Auto Loan Refinance Lenders for Bad Credit
Compare Multiple Loans
Examine the Interest Rates
Look at the APR
Consider the Length of the Loan
Make Sure You Can Afford It
Ask About Promotions
Be Careful with Subprime Lenders
Frequently Asked Questions
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