Have bad credit and want to refinance your car loan? You can still get loans at reasonable rates if you look for lenders online. If you look into rates and terms, you can find a good deal that will save you money each month. By following these tips, your chances of getting the best loans will go up.
Consider a co-signer
The lower your rates, the better your credit score. So, if your credit isn't great, look for someone who does. By having them co-sign for your loan, you can find yourself qualifying for much better rates. Lenders look at the record of your co-signer, but you have to pay back the loan.
If you are in a relationship, you could also use the person with the best credit score to apply for the refinance auto loan. By getting your credit score online, you can find out who has a better record.
Change your credit report.
You can't change your credit report in a day, but you can make sure it's in the best shape possible. Take a few minutes to look over your free copy and make sure everything is up to date. You might also want to include an open letter that explains why your credit score is so low. Lenders sometimes take into account things like losing a job or getting sick.
Get rid of old debt and keep cash assets.
Aside from how well you've paid your bills in the past, lenders also look at how much debt you have and how much cash you have. Lenders will like you more if you have less debt, especially if you make a lot of money.
Also important are cash assets. Lenders like to see that you have enough money in the bank to last at least six months. This can mean a savings account, a money market account, or a certificate of deposit.
Be honest with what you say.
Most likely, you will be able to get a new loan. The rates you can get depend on the information you give. So, if you want the best loan estimate, you should be honest about your credit history. So, when you apply for the loan, you will be approved at the rate you were given.
Also, keep in mind that not all lenders charge the same interest rate. Even if you have bad credit, you can find good rates if you look hard enough. Subprime lenders usually give loans on the basis of one or two points.
