Credit-Yogi

How to Get Car Loan Refinancing with Bad Credit

 
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Phoenix, AZ -- (SBWIRE) -- 02/24/2014 -- Bad credit hovers over people like a thundercloud ready to unleash its power. Having poor credit gets in the way of accessing new credit sources. It also makes it difficult to move forward financially, especially if one needs to refinance his auto loan. Credit-yogi.com is here to share some tips for obtaining car refinance for people with bad credit, including:

- Interest Rates & Poor Credit
- Credit Report Perusal
- Utilizing the Internet
- Traditional Lenders

Low Credit Scores and Interest Rates

When seeking car loan refinance with bad credit, one must understand the relationship between his poor credit score and his interest rate. The lower one’s credit rating is, the higher the interest rate he will have. So, if his credit score is under 640, he’ll have to pay interest almost 20% higher than someone whose score is higher. This means he will pay a great deal more for the use of the money than another person who has good credit. Take some steps to improve one’s credit score prior to searching out a car loan refinance.

Obtain Credit Reports

Credit-yogi.com encourages a person looking for car refinance for people with bad credit to send for copies of his free credit reports from the Big 3 credit bureaus. HE must then go over them thoroughly, making note of any errors. Should there be any, he must write letters of dispute to the Bureaus, which have 60 days after receipt of them to render their decisions. If there are mistakes, they will be removed from one’s credit reports, immediately improving one’s credit score.

Check Out Online Lenders

Getting a car loan refinance with bad credit isn’t as hard as one may think. Checking online lenders can be beneficial, as one can look at several of them at once, making finding the best rates easier. These financers base their offers on one’s credit history, but many of them will work with one to get the lowest interest rate possible. One can print out the offers proposed by online lenders and bring them to local lenders, who may try to beat them to get one’s business.

Conventional Lenders

Local financers want to keep business in their communities, as doing so enriches the areas. Toward that end, they are often willing to work with one seeking car refinance for people with bad credit. They can be convinced to propose a reasonable interest rate after seeing that one has had significant improvement in his payment history on other debts. Meet with several lenders to compare rates, then choose the best one.

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Credit-yogi.com came into existence eight years ago with one goal - to give consumers the accurate, quick answers to their financial inquiries they deserve. Powered by the combined intelligence of over 200,000 legal, property, and fiscal wizards, the website consistently accomplishes that aim every day. For a free preliminary consultation, dial 866-964-9644.