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.
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!