Consumer Car Buying Advice Blog

Once you have established your auto credit with a bad credit car loan you might want to consider this option

We know credit

If you’ve been financing a vehicle for a while using terrible credit auto loans you might be able to switch to something with a lower monthly payment.

We’ve sometimes seen this happen as we’ve been doing bad credit auto sales for twenty years next month here at Auto Credit Express. We even built a web site for applicants that explain such issues as credit scores and bankruptcy as well as today’s topic, bad credit auto loan refinancing.

Refinancing

Refinancing poor credit car loans can mean a number of things: cutting the interest rate, lowering interest expenses or even reducing the monthly payment. It can sometimes even do this as you to continue to establish your car credit.

Typically, you might qualify for a lower interest rate if you’ve made timely payments on your first bad credit car loan for 18 to 24 months, depending upon your original credit situation. A lower interest rate also reduces your interest expense.

A lower monthly payment can also be arranged by extending the loan term. If you currently have 36 to 48 months left on your payment schedule, a refinance can add an additional 12 months or more to the loan. Although this extends the payoff date (and a possible increase in interest expenses), a lower payment means more money in your budget for utility bills and other essentials. It also reduces the chances of late or even missed payments.

Credit score impact

Refinancing a bad credit auto loan can also improve your credit scores. Think about it: If a high payment in the past caused any problems, you can now boost your FICO scores. Since these lenders report to the credit bureaus and because they’re now lower, your now timely payments will help boost your scores.

The Bottom Line

If your current car payment is too high, one option you may have to lower your monthly payment (and possibly even your interest rate at the same time) is refinancing poor credit car loans.

And speaking of loans, if you haven’t yet applied for one, you should know that Auto Credit Express has helped thousands of people with bad car credit find a dealer that will give them their best chance at getting approved auto loans.

So if you’re serious about getting your auto credit back on track, you can begin now by filling out our online auto loans application.

Tags: Bad Credit, bad credit auto loan refinancing, poor credit car loans

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