Auto Refinance Bad Credit

Auto Refinance Bad Credit - If you purchased your car from a "buy-here-pay-here" lot, chances are you're paying an exorbitant interest rate.

Even if your credit is less than perfect, you may be able to refinance your vehicle at a lower interest rate, and save hundreds-or even thousands-off the cost of your loan.

As with traditional auto refinancing, lenders have stipulations on auto refinance bad credit loans. Generally, in order to refinance your auto, you'll need to meet the following requirements:

• Vehicle must have less than 75,000 miles



• Vehicle may not be used for business, or may not be a commercial vehicle



• Loan balance must be more than $7,500



• Your vehicle's value must be more than you owe (if you're not sure how much your car is worth, visit Edmunds.com or KBB.com for a guesstimate)



• Your FICO score must be above 540

While traditional lenders, such as banks and credit unions, may be able to assist with an auto refinance bad credit loan, you may have to turn to a lender who specializes in bad credit. Shop around with several lenders, taking careful note of interest rates, fees, and requirements. After you've gathered the data, plug the information into an online auto refinance calculator to see which lender will provide you with the highest bottom-line savings. Even a 1% interest rate drop will result in significant savings over time.

Since interest rates are based on your FICO score, you can expect the rate you'll pay to increase inversely to your credit score, with marked increases for scores less than 660. If your car is valued at less than it's worth, it's likely that you'll have to fork over the difference before your loan is finalized.

To learn more about bad credit auto refinancing, contact a specialist lender to see if they can help you reach your financial goals.


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