subject: Auto Refinancing with a Bad Credit or FICO Score - 3 Tips [print this page] The only thing about as bad as not having enough cash flow each month to cover one's bills is that of having too low of a credit (or FICO) score to be able to quality for a loan. The frustrating thing about having financial problems is that, quite literally, the worse they get the harder it is to turn things around.
Having a bad credit score can even affect your ability to qualify for refinancing your auto loan. That's right: even though the car's title is in your name and technically it serves as collateral against your auto loan, banks and other lenders will still hesitate to give you a good deal on refinancing your car loan if you have bad credit.
Still, even with a bad credit score, it is very much worth it to get your car refinanced.
The Benefits of Auto Refinancing
With an auto refinance, you can realize a number of benefits. Depending upon how you structure the terms of your new loan, you stand to see benefits such as lower monthly payments, lower total cost of interest for the loan, and even the ability to get some much-needed cash by leveraging equity in your car.
If you are interesting in auto refinancing with a bad credit or FICO score, here are 3 tips to get you financing faster:
1. Get a lay of the land in terms of your current credit situation:
Even though you already know you have a low credit score, it will still behoove you to run your credit report with each of the major bureaus (TransUnion, Experian and Equifax). Carefully examine each report, noting the score. And, be sure to protest any glitches or errors you find in the reports. If you can prove they are really errors, you by law have the right to get them removed. And, doing so could help your score improve.
2. Seek out bad credit auto refinancing lenders:
Like anything else in life, seek and ye shall find. If you look for regular auto refinance lenders, that is what you will find - and likely have your loan rejected. On the other hand, if you seek "bad credit car refinance" lenders, you will find them, too. Be sure to make a list of at least 5-7 lenders so as to increase your chances of getting approved with a good interest rate. Then, just apply!
3. Once you have 3 new offers in your pocket, see if your current auto lender can beat the best one:
Now, it is time to play the lenders against each other. Don't worry, this is a totally fair tactic! Get at least 2-3 offers, then go to your current lender and ask if they can meet or beat the terms you were offered.
Try these 3 tips for auto refinancing with a bad credit or FICO score.
Auto Refinancing with a Bad Credit or FICO Score - 3 Tips
By: Robbie James
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