Bad Credit Auto Refinance

Helpful Auto Refinance Information

in Bad Credit Car Refinancing by Shelley Green

Auto refinance is where you take out a new loan to pay off your current auto loan. When you do this you will normally look to get a better loan. This generally means getting a lower rate of interest which makes the loan cheaper. You may also look to extend the term of the loan to reduce the amount required to be paid each month. This does not reduce the cost of the loan but will make the monthly payments more manageable.

If you have a low credit score for example one that is around 600 or lower then you will need to shop around to get a good loan. You will have to undertake research and the best way to do this is use the internet. It is usually a lot cheaper and quicker than calling individual auto finance or auto refinance lenders. If you find a loan you like then you can normally apply on line and get a response within a few days.

You can search for companies that specialize in auto refinancing. There are many out there who will give a good deal to those who pay on time. The specialist auto finance and auto refinance sites often have calculators that allow users to compare payments for loans of different lengths and at different rates of interest.

Auto refinance calculators will often require you to input the details of your current auto loan so it is usually a good idea to have the paperwork to hand. You will normally need to specify the amount required to pay off the loan and the number of months left on the current loan. When calculating the outstanding balance on your auto loan pick a day 10-14 days ahead. This allows a week or two for the auto refinance loan to be granted.

While calculators are useful in giving the user an indication of the cost of the loan, it should always be remembered that there are other factors to take into account when looking for a loan. So if you are going to take out an auto refinance loan, read the terms and conditions. Pay particular attention to those which cannot be mathematically calculated and therefore do not get taken into account by the calculator.

If you are looking to get an auto refinance loan then you may look at getting a personal or unsecured loan from a financial institution such as a bank. Banks are often stricter than other lenders when it comes to the criteria for qualifying for a loan. However, if you already have a relationship with a bank, such as a current account, checking account or saving account, then it can help enormously and give you a better chance of obtaining a loan.

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9 Comments »

9 responses to Helpful Auto Refinance Information

  1. charlie m said on July 16, 2010

    You would have to buy the vehicle from him, so to speak, and have the credit union or bank re-write the loan. It can be done and has been done but it's not easy. If the bank believes you to be a credit risk alone without the husband/ex-husband because of totlal income change and checks your solo credit ratings, they could deny you.

  2. Johnny said on July 16, 2010

    Your Mazda is NOT worth $2000…. don't believe what the dealers tell you. You can sell it privately and get at least double that. Repainting isn't a big deal, you can even put a positive spin on it like "it was repainted recently so the paint is perfect and shiny!" But they'll want to know why it was repainted…. as long as it wasn't due to an accident, should be fine.

    When you are approved for a loan, they usually tell you the max you qualify for, such as $50k. So if you're buying a $20k car, you can certainly add some negative equity to it and buy it for $24k. As long as you aren't paying $40k for a $20k, it should be alright.

  3. perrismailbox said on July 25, 2010

    Low Interest Car Loan Rates , Best Auto Loan ,Instant car loan: via

  4. carsnatl said on July 25, 2010

    No Credit History Can Still Get You An Auto Loan – With Low Interest! by usedcarloans

  5. MARIO R said on July 27, 2010

    if you get the money from your bank you are still financing the car, just now through them. but the big question is why is you interest rate so high? and what is "extremely high" is it 20% or is it 8-9% people have a perception that every car can get 0% (not saying you) but there are people that belive they can get 0% on any car.
    here are a few good ideas.
    1 if you are getting the money on a home equity loan and its less than the rate you are paying now.
    2. if you are refinancing against the car and the rate is lower than you are paying now.
    3. dont pay your loan off now, you would be paying off a depriciating asset.(cash from a savings or any type of account that earns interest) actually cost more in the long run than any interest rate.

    before you do any of the above see what your bank is offering and also see the term i.e. 36 months verses whatever you term is now. and see if they can beat it. if they beat it by .50 or under its still not worth it.

    i hope that helped and good luck.

    i have to add this, first you dont need a 720+ credit score to refinance a car, you can be between 620 and up and as far as using an equity loan from your house, its a good idea as long as you financing at least $10000.00 because then you can wright off you interest and acctually pay yourself back the interest(see an accountant for the details on that) and i wouldnt put too much credit on someone with little or no experience in the field of auto loans.

    again good luck.

  6. *~Gurrlie~* said on July 28, 2010

    Only if the auto has a value less than the pay off balance!

  7. fenhardy said on July 29, 2010

    There are 3 main types of interest.
    Pre-scheduled, Simple, and Revolving

    Pre-Scheduled is what mortgages are. No matter when you pay, 30 days of interest is prescheduled into the payment.

    Simple is how car loans work. When you pay they take into consideration when the payment hits and it is applied immediately. Thus the interest charge changes. This is why it fluctuates. (This is the BEST way to borrow money BTW)

    Revolving = credit cards. Designed to never pay off.

  8. car said on July 31, 2010

    Get a name and their address than file suit.

    http://www.budhibbs.com/

  9. Judy said on August 2, 2010

    google
    car loan interest calculator
    or go to bankrate.com and click on calculators
    /

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