Bad Credit
Car Loan Refinance
A bad credit car loan refinance question from the
Refinance My Auto Loan page. Dustin in TX writes...
How does bad credit car loan refinance work? I recently got screwed on a used car deal where the price was supposed to be $6,500 and after getting excited and not paying attention to what I was signing I ended up with a $10,000 car plus 18% apr. I want to refinance and I have bad credit. WHAT IS THE LOWEST INTEREST RATE I CAN GET?
Answer
Hey Dustin,
Sorry to hear you got stiffed. Unfortunately, I may not have too much better news for you with regards to bad credit car loan refinance. Currently there are not many lenders (with the economy the way it is) lending money to customers with credit issues for auto loan refinancing.
I also don't know all the particulars of your credit situation, so that would also make it a bit more difficult to say what your refinance rates would be and if there would even be a lender that would approve your refinance.
Auto loan refinance rates are usually higher (on an apples to apples basis) than standard purchase rates as the lenders assume more risk lending on a refinance as opposed to a purchase from a dealership.
Three possible refinance sources
That being said, here are a few lenders that you may want to consider: Capital One, Wells Fargo and/or Chase.
I am not affiliated with any of these lenders, but do work with two of the three at my current dealership for standard purchase loans. I do know that all three offer non-prime auto loans, but am not quite familiar with what they will do with regards to refinancing.
Your credit may stop you
If you apply and are turned down, then I would suggest cleaning up some credit issues you may have, continue to pay on your current auto loan (and pay on time) and try to reapply in approximately 3-6 months.
Get your Free Credit Score
and see what might be holding you back from a better approval. It's really easy to dispute inaccurate information, which could give a very quick boost.
Online sources
I was affiliated with Rate Genius (an online refinancing source), but have had very little success with prior visitors getting approved and decided to end my relationship with them, but you may try applying with them as well.
Sorry I couldn't be more specific about your possible refinance rates, but there are just too many variables involved here and without knowing them all I just wouldn't be able to give you the exact answer you are looking for.
Hope this helped to explain bad credit car loan refinance and you are able to get the refinancing you are looking for...Justin
Read more answers or ask your own refinance questions by returning from
Bad Credit Car Loan Refinance to Refinance My Auto Loan
Go to Insider Car Buying Tips home
