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Refinance Car Loan Bad Credit

By Edited Jan 27, 2016 0 0

If you own a car, and it doesn't matter much if it is a new car or an older, used car, then you might want to investigate the possibility of having the thing refinanced. Refinancing a car can save you enormous amounts of money. We're easily talking about hundreds to a few thousand dollars here. Not per month mind you. I mean the entire car loan.

If you decide to refinance right at the start of your car loan, then you will have the most benefit from your refinancing. You can lower your monthly payments by as much as $150. When interest rates drop, you can refinance and basically switch from one used car loan to another one. The whole idea is, ofcourse, to switch from a high APR loan to a low APR loan.

A lot of people have bad credit nowadays and they'd like to refinance their used cars to save money. Or perhaps you simply don't like the structure of your current car loan. Having bad credit ironically makes it harder to get loans. So perhaps you're thinking that a car refinancing is out of your league. But this is not entirely true!

How To Refinance A Car Loan With Bad Credit

While it is harder for you to refinance your car while you have bad credit scores, it is certainly not impossible. A lot of people have already been through home refinancing, and they remember the amount of trouble they've had to go through for it. Having your home refinanced can save you tens of thousands of dollars. Since home refinancing plans are based on the equity you have in your house, an appraisal is required. This further complicates matters.

Used car loan refinancing on bad credit is not based on the car's value and therefore does not require an appraisal. So that's a whole lot of trouble you're saving yourself right there already!

When refinancing your car, you won't save as much as when you'd refinance your home. But then again, it also costs much less effort. So overall, it is definitely worth the trouble. When you're going to save money, you've gotta be willing to do some work to lower your monthly cost by $50 to $150. Those little bits add up over time, you know!

Before getting a used car refinanced, better check to see if your credit score is not as bad as you feared it was. Also be prepared to provide proof of income, so the lender will be willing to help you out with a new car loan.

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