Yes, even people with bad credit can refinance car loans. However, as with most cases of bad credit, borrowers should understand they will likely not receive the best interest rate.
How to get a car loan with bad credit?
Know your credit score. Before you begin the shopping process,check your credit score.
Save for a down payment. If you have a lower credit score,making a down payment on a car can increase your chances of securing and getting approved for
Research,research,research. Prepare as much as possible so you’re not caught off guard when the time comes to negotiate.
Shop around. Once you begin the shopping process,don’t limit yourself to just one lender.
Prequalify with lenders. Prequalification allows you to see if you’ll qualify for a loan before you apply.
Be sure the terms are final. If you finance through a dealer,always make sure the terms are final before you sign.
Avoid subprime lenders. Subprime lenders can seem like a sure bet to anyone wondering how to get a car loan with bad credit.
Shop loan terms,not monthly payments. Lower monthly payments look good on paper and are usually used to entice buyers.
Bring a friend with you – and consider a co-signer. Ask a friend or a relative to go with you,says Massachusetts-based consumer attorney Yvonne Rosmarin.
Look out for add-ons and scams. Nonprime buyers are more likely to encounter lending contracts with nonessential goods and services,says Josh Frank,former senior researcher for the Center
How to get the best car loan rates?
Get Your Credit in Order Before You Apply for an Auto Loan.
Budget for Your Auto Loan Down Payment. It’s possible that you could be approved for an auto loan with little or no down payment.
Find Out Where to Apply for Auto Loans.
Get a Pre-Approved Loan for Your Auto Finance.
Select a Shorter Car Loan Term.
Time Your Car Purchase.
How long should a car loan be?
According to Edmunds.com, the average length of a car loan is 5.5 years. Some are even extending the loan to six or seven years. When deciding on the length of the loan, the following factors should be considered: Interest: The longer you extend your car loan, the more money in interest you will have to pay.
