It seems like credit is everything these days. We are having a ‘credit crisis’ as a nation, and many individuals are having a hard time getting a loan because of their own personal credit. Many lenders have tightened up their guidelines as well. When it comes to car loans and refinancing, a lot of people wonder if you can refinance a car loan with bad credit. Well the answer may surprise you – there are a lot of lenders that will help you and allow you to refinance that existing loan.
Things to Consider with Bad Credit
So what is likely to happen if you try to refinance your car loan and you have bad credit? Well, there are some places out there that will still turn you down no question. But there are also a lot of lenders that are willing to work with you despite your bad credit.
All lenders look for the same attributes in a borrower: (1) their ability to repay the loan, (2) their history of paying their obligations in the past, (3) the stability of the borrower in terms of residency and employment, and (4) the equity in the collateral. Each lender has unique risk tolerance so just because one lender does not have an interest in financing a bad credit refinance loan, the next lender may. It is worth your while to find a lender that is right for you. OpenRoad Lending specializes in assisting borrowers will all types of credit profiles.
Know Your Credit Score and History
Before you go and apply for a refinance car loan, make sure you know what is going on with your credit. There are a lot of services you can use to review your credit report to see why your score is what it is. If you can explain why your credit is the way it is with the lender, they may be more willing to work with you. Always be honest with the lender. If the lender discovers that you have misled them about one thing or another, it is usually an immediate turn down.
Even if you had a bankruptcy, if it is discharged and you can show that you are getting things back in order, there is a good chance the lender will be willing to help you.
Find the Best Rates
Even if you have bad credit, you can still get very competitive rates that will help you lower those car payments. You should still shop around to find the best refinance car loan for people with bad credit. The good news is that even if you do have bad credit, you can still get a refinance car loan! Refinancing can save you a lot of money and in very little time.