Auto refinancing with bad credit is possible…if lower interest rates, better payment terms, affordable monthly payments, or the possibility of putting off your next car payment for a month or two sound good to you, then you should definitely keep reading and find out more about auto refinance with bad credit!
Did you know that you can do auto refinancing with bad credit?
There are many factors that contribute to bad credit. Maybe you had a job change or loss that impacted your ability to pay your bills, made some bad financial choices, or underestimated your ability to afford the payment. Even a lack of credit can give you a low credit score, like only having one credit card, or just not having enough time to build your credit history.
Many people don’t know that refinancing their auto loans is even an option for people with bad credit. Learn more about our auto refinance eligibility requirements.
The truth is, a new loan could actually make your car payment more affordable and help you get on the path to improving your credit. Whatever the reasons for your credit score, the most important thing is to know your options, and RefiJet is here to help you find the answers.
Having bad credit is a really common problem. You are not alone!
If you do have bad credit, some lenders and banks see you as a poor investment and a high risk. Different lenders have different criteria when it comes to payment history and credit score requirements.
The good news is that there are specific loans that are designed to help people with bad credit obtain or refinance a car loan. Auto refinancing with bad credit is called subprime lending programs and they actually have requirements that many customers with bad credit can meet!
RefiJet can help you find the best option for you. Bad credit is one of the most common reasons consumers come to RefiJet. Helping people like you refinance their auto loans is their specialty. They work with many different lenders and banks, know how to find options that might work better for you, and will guide you through the whole process quickly and efficiently.
Four Surprising Benefits of Auto refinancing with bad credit Your Car Loan:
1) Lower your car payments
Refinancing your car can mean a lower interest rate and/or increasing the length of time to repay your loan. Both translate to lower monthly payments, which can make a significant difference when it comes to your monthly budget.
Bonus: when your car payment is affordable, it drastically reduces the likelihood of missing any of your future payments. When you don’t miss a payment, it can help improve your credit score!
2) Improve your credit rating
A subprime loan is for people with bad credit and low FICO scores. For many people, it is the only way to get financing for a large purchase like a car when most other lenders will decline the applications.
Typically, a subprime loan has a higher interest rate because the loan carries more risk for the lender. But the good news is, when you make your payments consistently, a subprime loan can help people with bad credit improve their credit ratings and FICO scores. The higher your credit score goes, the higher the likelihood of being approved for a lower interest rate on a future loan.
If you already have a subprime auto loan, we may have good news for you. In fact, if you paid all your payments consistently for the past year, your FICO score may have gone up! If it is 600 or higher, you may very well qualify for a new loan at a lower interest rate!
3) Build up your stash
Hopefully, refinancing your auto loan will allow you to put a little more money into your savings. Unexpected expenses, whether they are personal, home, family, auto, major and minor, etc., come whether you can afford them or not. Having a little more savings makes an enormous difference.
4) Take a break from your car payments
When you refinance your loan, it takes a while for your application to be processed and your new loan to go into effect (up to 60 days in some cases). Since your first payment is not due until then, you very well could end up not having to make a car payment for one or even two months! Learn about how you can take a vacation from your car payment.
5) Take out some cash
If you want to take cash out against your vehicle’s equity to meet unexpected expenses like medical emergencies, losing your job, etc., then refinancing your loan is something to seriously consider. Learn more about getting cash back from the equity in your car.
6) Own your car
If you want to go from leasing to owning the car, refinancing is a great way to make the transition. Learn more about Buying Out Your Lease.
Check it out our Auto Refinance Calculator to see if you could get a better auto loan.