Bad Credit Car Refinance

Regardless of your credit history you can refinance your high interest rate car loan into a new lower rate loan. There are many car finance companies who specialize in bad credit car refinance loans.

Bad Credit Car Refinance Tips

To ensure a speedy car refinance loan approval you should pay close attention to points listed below. Don’t make a silly mistake on your application and risk a long drawn out application process or worst still outright rejection. bad credit car refinance It is absolutely vital that your application is complete with no errors that will show up in your credit report or on the previous loan documentation.

Your car refinance loan applications need to be in the same names as the names on your current car loan. This is important because that is how your current car loan is identified and found. Have your car loan account number ready. If you give them a name with a different spelling it will raise a red flag and draw unwanted attention to your application.
You must refinance more than $7500. Any less and it’s not worth the car refinance company’s time.
It’s also important to have all the car information accurate so that the car can be accurately appraised to ensure that it meets Loan to Value ratio guidelines. Enter the year and model and enter the 17 digit Vehicle Identification Number or VIN, found on your dashboard or registration.
Your car refinance loan amount should not be higher than the appraised value of the car. Just like a home mortgage loan refinance, where the bank won’t do a bad credit refi for more than the value of the house. You might want to check your values first to make sure your car has retained a reasonable amount of value relative to the amount you still owe on it.

Credit Report Issues

Before you go out looking for a bad credit car refinance the first thing you should do is get a copy of your credit report and study it for errors omissions and negative entries. You can get a free copy of your credit report at Annual Credit Report. The reality is that you won’t know how bad your credit is and just why it is so bad if you do not get your credit report and study it.
Errors on your Credit Report: If you find errors on your credit report you should immediately notify the credit reporting bureau and ask them to rectify this negative entry or better still remove it. This wil improve your credit score.
Negative Entries on your Credit Report: If you find some negative entries on your credit report for small amounts of money like an old cell phone bill or utility bill that you forgot to pay then arrange to have it paid off in return for having the negative entry removed.
Omissions on your credit report: Are there accounts that are current and in good standing that are not being reported to the credit bureaus. Notify the creditor and ask them to report your good payment record and your good standing with this current account. Also gather all your payment history for this account as you can use this as part of your bad credit car refinance application.