Phoenix, AZ -- (SBWIRE) -- 02/27/2014 -- How does one obtain an auto loan refinance with bad credit? Will traditional lenders help? How about online financers? Yes, those financers can help. Credit-yogi.com has researched this subject and is here to offer some insight into it, such as:
- Value of the Vehicle
- Know the Balance Due
- Sub-Prime Auto Lenders
- Compare Interest Rates & Terms
Know the Vehicle’s Worth
There are some things to know about auto refinance for people with bad credit, one of which is how much the vehicle is worth. The Internet has innumerable websites that can evaluate one’s car, but the Kelly Blue Book is known throughout the auto industry as the most accurate. In order to qualify for a bad credit refinance loan, the vehicle must be worth more than what is owed on it.
Refinancing a Small Amount
Now that one knows what his automobile is worth, he must find out how much he owes on it before he can get an auto loan refinance with bad credit. He can get this information from his most recent loan statement or by contacting his lender. If he has already paid $8,000 of a $10,000 loan, he must decide if refinancing the rest of the balance makes sense. Even if he feels he can no longer afford his current payment, perhaps he can ask for help until the loan is paid off. Refinancing such a small amount may end up costing him more in the long run due to fees and other considerations.
Below Prime Rate Financers
Lenders who charge sub-prime interest rates specialize in auto refinance for people with bad credit. Most prime lenders won’t work with someone whose credit score is low; sub-prime financers will. They have access to funding that traditional lenders do not, and so can offer more reasonable rates and terms than conventional financers.Credit-yogi.com reminds folks: Before going to a local lender, remember that each loan denial one receives harms one’s credit score, so checking out sub-prime lenders first might be smart.
Compare, Compare, Compare
Regardless of what type of lenders one finds for auto loan refinance with bad credit, he must compare rates and terms among several different ones. The lower the interest rate, the faster the loan refinance gets paid off, improving one’s credit standing. If Lender A says he can do 11% interest, bring that offer to Lender B and see if he will match or beat it. The best way to get the best deal is to look for it, so take a little time to shop around before choosing a lender.
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