Category Archives: Auto Refinancing

Can You Refinance Car with Bad Credit & Late Payments

Your credit score is a work in progress. It goes up, and then it goes down. Life always seems to get in the way of your next credit card, rent, or car payment. What if you could lower one of these bills, even a little bit? Would it help you catch up and stay ahead of the game? There might be a way you can refinance your auto loan despite bad credit and late payments. We’ll show you how.

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First, refresh your memory on what it means to refinance.

When you refinance, you essentially get a new loan to pay off the existing one. The new (refinanced) loan is a new contract between you and the lender.

Refinancing allows you to get a new loan with a different interest rate, term, and monthly payment. People refinance their auto loan for many reasons, but usually to get a more favorable interest rate and lower monthly payment.

Our goal is to help you refinance your auto loan, even with bad credit and late payments. If you can lower your monthly loan payments, you might find it easier to stay on top of them and save money in the long run.

Next, double check your credit score.

It may be higher than you think, or at least higher than when you first applied for a car loan. If so, you’re in for a pleasant surprise! This is also the time to look for discrepancies in your credit report. Make sure all of the information is correct, including accounts open/closed, judgements, and credit inquiries. Disputing any errors could give your credit the boost it needs to get beyond that “bad credit” label.

Get your credit scores and reports from all three credit bureaus within seconds.

Talk with your current lender.

If your credit score is higher than when you first applied for a car loan, call your current lender! This is a great time to ask them about refinancing, especially if you can prove that your credit has improved or your situation has changed for the better.

Like with most things in life, you never know unless you ask. And what do you have to lose? Lenders don’t like losing customers, since losing customers means they’ll also miss out on interest payments. They may work with you to modify your current loan or help you refinance, despite your credit or payment situation.

When you talk to your lender, ask if they’re going to run a hard credit check. Then be prepared to apply for refinancing elsewhere. Hard credit checks can lower your credit score by a few points, but you can avoid multiple “dings” by applying for auto refinancing within a short timeframe. The major reporting agencies roll multiple auto inquiries into one inquiry on a continuous 14-45 day cycle.

Or, turn to a company that understands you.

We believe that refinancing isn’t a luxury that’s reserved for people with perfect credit scores; however, this belief isn’t shared by everyone in the industry. It may not even be a belief that’s shared by your local bank.

You’ll save yourself time and frustration if you turn to a lender that works with everyone who wants financing and offers you options from the very beginning.

myAutoloan has a proven history of working with people who have bad credit. Just check out our customer reviews!

Direct Online Automobile Loan

Direct Car Loans: The Process

Taking out a car loan for the first time can feel overwhelming.  You might also feel some uneasiness if you are using the web to search for an auto loan.  It is different but it is also much simpler and less stressful than going to a dealership for financing to get a new car.  We will try to provide you with some more information about the process so that you see that this online process is easier and takes far less time than you might think.

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Evaluate Your Finances

With a direct from lender process for obtaining automobile financing, you can find opportunities available across the full financial credit spectrum. Still though, it is good to know what to expect.  Take a look at your credit score to get an idea of where you fall. Also, you should start considering how much of a loan you will need.  By searching online for cars in which you’re interested and figuring out how much money you can pay down on the vehicles will help you to determine how you want to proceed.  Keep in mind that while the process is designed to help you get an automobile loan, higher credit scores and a higher down payment can assist you in obtaining a higher priced vehicle.

Know that Opportunities Exist 

As you’re taking a look at your financial situation, you might start to feel as though you won’t qualify.  Remember that myAutoloan.com offers potential lenders for people in all different financial situations.  Even if you have a low credit scores, you can apply with us for a loan.  The point is it does not matter what your score is, we will have a lender that can help.   Be it excellent credit or damaged credit, we have an answer for you.  Knowing that opportunities exist for you to obtain an automobile loan, we sincerely hope that you will be encouraged to fill out the application and see how great a feeling it is to have a choice of lenders.

Review the Possibilities

You might think that you’ll get only one offer presented to you – that’s what happens at a dealership.  Fortunately, myAutoloan.com works to provide you with up to four direct loan offers from national lenders and specialty lenders willing to finance your car purchase.  Once the offers are presented to you online an within minutes, take the time to review the components – (rates, months, and APR%).  Thoroughly reading through each offer lets you know more about how to utilize the choices that are being presented.   Also, make a note of any questions that you have.  All of our lenders call to verify the application is from you and it gives them the chance to answer any questions that you might have.  Speaking with a direct loan representative to fully understand the loan offer is a smart decision.

Get Your Loan

A major benefit of an online lending platform like myAutoloan.com to finance your automobile loan is that you do not need to go through the dealership. You can actually go car shopping with your financing already in hand.  You just finalize the loan amount at the time of closing.  In a long term, you can save your valuable time by doing so.  Also, you can save money by using the online direct loan process.   When you get a car loan from the dealership, remember that the dealership has to make money too. You are likely to encounter fees that you wouldn’t if you were to take out a loan directly from one of our direct lenders.  Being directly connected with the lender in charge of the automobile loan gives you empowerment!  It’s very good thing to have when you are shopping for a new or used car.

Pay Your Loan

Once you have accepted an offer of financing from a direct lender, you will know the terms of the agreement and make the payment date any day of the month.  Opting for a direct auto loan is actually a great way to build up your credit score.  You might be working on bringing you score up or just building your score to improve your credit worthiness.  By paying back a loan, with on time payments, means that you’re adding to your credibility as a borrower. In addition to getting a new vehicle that you love, you also have the opportunity to improve your credit rating – It’s a great win for you!

Give us a try!  That’s also a smart move if you like choice!  Good luck and good hunting.

Top 4 Mistakes When Refinancing Your Car Loan

Refinancing your auto loan means getting a new loan, typically one with a better interest rate. It could save you hundreds of dollars, maybe even thousands over the course of the loan. Saving that much money is exciting, right? Don’t let that excitement cause you to overlook simple details in the refinancing process. Watch out for these common auto refinancing mistakes to make sure you secure your best refinancing deal yet, all with a little help from myAutoloan.

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1. DON’T: Assume your credit is great

Refinancing is a smart move if your credit score has greatly improved since you first applied for an auto loan. If you’ve been making your car payments on time since you first purchased your car, whether for a few months to a full year, your credit score may very well have gone up. Maybe it’s pushing 700, maybe not. There could be errors on your report that are damaging your credit score, but you won’t know unless you check.

Check your credit with the three major credit bureaus, Equifax, Experian, and TransUnion. Report and resolve any errors before applying for refinancing to help make sure receive your best refi interest rate. Your new lender will run a credit check to determine the conditions of your refinance loan. Beat them to it!

2. DON’T: Go with your first refinancing loan offer

When you’re learning how to refinance a car loan, you might be tempted to think that all loan offers are created equal. Or, that you don’t have enough time to compare more than one auto refinancing offer. Well, you’d be wrong on both accounts.

Refinancing offers vary from lender to lender, company to company. Offers can even vary by day depending on events in the economy. If you take the first offer you apply for, you might not be getting the best loan terms or interest rate.

Do yourself a favor and compare multiple refinancing offers. You can visit multiple websites and financial institutions, fill out multiple applications, and then separately evaluate each offer one by one. OR, you can visit one website (like myAutoloan.com), fill out one application, and evaluate multiple offers side-by-side. Apply to refinance your car loan on myAutoloan and in a matter of minutes we’ll match you with up to four offers from trusted lenders. It’s one application, multiple loan offers.

3. DON’T: Refinance a car you can’t afford

Let’s say you bought a new car that was a stretch for your budget from the get-go. Maybe it’s a luxury coupe or convertible that lightens your mood, every time you hop behind the wheel. You’ve become attached to the car but not your monthly payments.

Refinancing a pricey car may look good on paper at first, but it could end up costing you more in the long run. Do the math. If you need to refinance to lower your overall car expenses, you might want to consider selling the car and buying a car that’s more affordable.

4. DON’T: Overextend the new loan terms

According to Investopedia, “Overextension describes a loan or extension of credit that is larger than what the borrower can repay comfortably.”

Refinancing your current auto loan should make you feel more comfortable, not less. Overextension can happen when you extend the loan terms beyond your means. You pay less, but for longer.

A 36-month loan refinanced to a 60-month loan will lower your monthly payments, but those lower monthly payments will come at a cost. The longer you finance a car, the more interest you’ll pay on it, and that’s on top of more financing charges over time. If you’re in a long loan now, refinance for a shorter term.

Longer loan terms come with more drawbacks than one. Downsides include:

  • Negative equity (and an upside down car loan)
  • Low vehicle resale value
  • Getting tired of the car before your loan term ends

At myAutoloan, we’re here to help you avoid auto refinancing pitfalls by giving you the power of choice–all with no pressure. Compare up to four auto refinancing offers today and make your choice, at your own pace and on your own time.

The Best Tips to Use When Refinancing a Car Loan

Don’t Get Stuck With a High-Interest Car Loan

A common problem that many car loan shoppers face when purchasing a car is that they get locked into a high-interest auto loan. This usually happens because the consumer fails to shop and secure a low-interest rate loan before they shop for a car – unfortunately they instead decide to accept the finance rate offered by the auto dealer they’re doing business with. It is a mistake to not thoroughly research what car loan rates of interest you qualify for before completing your purchase. Why? It could potentially leave you paying far more for the car and the car loan than necessary.

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Stay on Top of Your Credit Score

One of the best tips for finding the most economical car loan possible is finding out what your credit score is in today’s market. By knowing your credit score and how prospective car loan lenders might look at your overall credit rating, you can acquire a better understanding of what rates you qualify for before you initiate a purchase. Shopping is smart so take the time to research. If you made the unfortunate mistake of taking a car loan before without researching your options, then knowing credit score after the fact can help you find a suitable refinancing loan option with a lower rate and potentially better auto refinance loan terms.  By refinancing your auto loan, you will see that you can save both interest and get a lower payment immediately.

Find Out What Your Car is Worth

Knowing what your car is worth is key to finding an attractive car loan refinance option or car loan refinance offer. A potential auto-refinancing lender is going to need to have an adequate equity stake in your vehicle in order to offer you an attractive loan rate. If you owe more on your car than what it is worth, then you might find it difficult to qualify for a refinancing car loan at all, as the prospective refinancing lender will not have adequate equity to work with. The best option is to find an online lending platform that can offer you more than one refinance offer. By having multiple refinance loan offers for your car gives you a choice as to what lender can best suit your refinancing needs.

The best and most trusted way to discover the real value of your car is to use a valuation service like NADA Guide, Edmunds or the Kelley Blue Book valuation tool. Some websites offer free services that help to evaluate what your car is worth by using a three-tiered estimation model of low, middle, and high figures. TrueCar might also be a good option when you are trying to fin out what your car is worth. When using any valuation tool be sure to enter the details about your car as accurately as possible, especially when it concerns the condition of your car’s interior and exterior. It is also important when using these servicing tools to make sure that you enter your actual VIN (if requested) and the exact mileage figure for your automobile.

Aim For the Best Interest Rates

When you are shopping for a car refinancing loan, the most obvious tip would be to review multiple loan offers before you select the first offer you receive. Many consumers do not understand how to read their credit report correctly and will often make the mistake undervaluing their credit standing – make sure you get your credit score. In many cases, you will be pleasantly surprised by what type of car refinancing loan you can qualify for, especially if your credit score is solid and you have a tremendous amount of equity within your automobile. Again, using a multi-lender platform like myAutoloan.com, you can compare up to four offers for refinancing. You really have nothing to lose by shopping for the best loans available, so be sure to start with a multi-lender provider that offers you more than just one quote.

Compare Refinancing Loan Rates and Terms

When applying for a car loan Refinance or refinancing your current car loan, be sure to compare loan rates and terms. Every lender is going to have a different view bases upon their lending requirements. Find the one that best fits your needs. There are many websites online that have a longstanding reputation for offering their visitors quality refinancing offers from reputable lenders. If you are ever in doubt about a specific refinancing loan, check out the reviews and go with your instinct – there are many great lenders in the marketplace that can save you money on your car loan refinance. Use their tools to learn more and understand how the process works. Be patient and good luck.

Financing a Car: How We Help

When You Have Bad Credit

It may seem that financing a vehicle is an activity reserved for people with high credit scores and superior financial situations. While they may have a host of options available when it comes to getting that loan, you are not precluded from a financing plan due to a  low credit score.  Instead of creating a lot of frustration in your vehicle search or purchasing a sub-par vehicle, know that our company helps you to find a competitive vehicle finance loan for the car you want to finance.

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Understand Credit Scores and Vehicle Financing

In order to really understand the process, you should know some more about credit scores and vehicle financing.  Financing a car is essentially taking a loan out on the vehicle, and using the vehicle as security for a lender.  Being able to obtain vehicle financing before you ever go to the dealer is a really smart thing to do.  Getting multiple offers and having a choice of which one you want is even better!  If you have taken out loans in the past, you likely have gone through this process of “Waiting – more waiting – and wait a little more before anyone finally gives you an approval.  The lending entity evaluates your financial situation to determine if you present a risk when taking out a loan.  You just sit and wait.  People who have bad credit scores are sometimes denied loans because they are determined to be a higher risk.  However, www.myAutoloan.com  understands that situation can occur but that these situations do not have to define you.  What if you could get more than one offer, even if your credit is not the best?  What if you could choose a lender that would work with you and is competitive in rates that they offer?  You get where we are going.

Know Where to Turn

Applying for a loan at just any lender might not be the best idea because you may find that you cannot get approved or that you do get approved with extremely high interest rates because of your credit situation.  Filling out multiple applications also take a lot of time and is not efficient.  Instead of taking this potentially damaging path to vehicle financing, apply with one application and know that we have lenders available for people with bad credit.  How great would it be if you could get up to four offers within minutes?  We already know and understand that some individuals are not in the best credit situations, and we have numerous lenders ready to approve and offer you a competitive loan rate that will help you re-establish your credit.  You need not to worry about the fear of rejection – your chances are very good that we can find lenders willing to work with you for vehicle financing.  

Reduce the Fees

Even if you are working on getting your financial situation into better shape and have made progress, you probably don’t want to take any steps backward.  Getting a loan from a car dealership could mean that you end up paying all kinds of additional fees.  Instead of just paying back the loan and the interest, you have numerous fees added on so that the dealership is able to make extra money.  Going through this process is unnecessary when you can get up to four offers for auto financing – Having choice means that you can get a lower rate loan and put that extra money towards bettering your current financial situation.  Our business is not out to make things difficult, and you would see that if you apply.   We want to help you get a vehicle finance plan that works for your financial situation with competitive rates.

See the Options

With most online lenders, you may only receive only one vehicle finance option due to your credit situation, but by working with our company, our goal is to get you up to four offers that provide you with choices.  Think about it – You may receive up to four potential offers!  Then, you can take the time to review the offers to see which one fits best with your needs.  At myAutoloan, we work to provide you with an experience that someone with great credit experiences.  You should have the same great experience by working with us. You deserve to feel as though you are being treated just like everyone else and thus, having a positive experience is something that you can look forward to.

Better Your Credit

Taking out a loan also means that you have the opportunity to better your credit situation.  For example, by paying your monthly payments in full and on time each month, you can see your credit score go up and up.  You might worry that procuring a loan on a car is going to make your credit situation even worse, but it actually improve your credit status and builds your credit score each and every time that you make on time payments.  

If you have bad credit, you don’t need to delay looking for a car loan.  Instead, work with lenders who want to work with you.  Read more about the process and how to make it work for you by checking out this vehicle finance guide.  Good luck and make it happen!