Once upon a time, people with bad credit were almost treated as lepers by those in the automotive industry.
Now, however, many companies specifically target those with bad credit, highlighting that a poor track record isn’t actually the end of the world. There are ways around bad credit when it comes to refinancing your auto loan.
First of all, having bad credit doesn’t necessarily mean a ‘no’ when it comes to applying for a loan, it just means higher rates and more fees. This is the company’s way of insuring itself against you; you’ve got a bad history and they need guarantees in case you revert to your former ways.
However, if you can manage the higher payments to start with, you should gradually find the weight of bad credit being lifted from your shoulders. This is because credit agencies will be able to see that you’ve kept up with installments, and improved your payment history.
It’s therefore a good idea to refinance after a period, as these changes in your credit history could see you paying lower interest rates and, as a result, save you money on your refinanced auto loan.
Refinancing an auto loan when you have bad credit is quite simple; the amount is decided based on the value of the vehicle and the amount you have left to pay.
It doesn’t cost to get a decision and there are lots of lenders who specialize in dealing with drivers with bad credit, so check it out today and potentially save yourself a few bucks!