How To Refinance An Auto Loan With Bad Credit

Jan. 9, 2012 - PRLog -- If you have bad credit, you may find it difficult to get approved for a car loan, but it is still possible. Sadly, you probably will not be offered a very good interest rate or terms. If you choose to refinance the car loan at some point in the future, this can shorten or extend the term of your loan or reduce the interest rate. Before you start looking for lenders, you should get in touch with the auto lender and check your loan balance. It is important that you know it, because if you do not, you cannot refinance your auto loan with bad credit. Alternatively, you can check your bank statements for this information.

As a next step, you will have to find out what your car is worth. If you owe more than what the car costs, you cannot qualify for refinancing in Canada. If that is the case, you really are in a bind!

It is not impossible to be approved for a loan by auto lenders, but if you have poor payment history, it will be more difficult. If you are skipping payments or can't make them on time, refinancing may not work out in your case.

It is not likely that prime lenders will be sympathetic to your situation; so, you have to apply with a sub-prime lender. High-risk auto lenders and other sub-prime loan providers specialize in bad credit refinancing. They are able to provide you with a product that is specifically tailored to meet your individual needs in this particular situation. High-risk auto lenders offer an array of loans to borrowers.

If you get more than one offer, you should compare interest rates and terms. Ideally, you should contact, compare, and contrast at least three sub-prime auto lenders. The more you contact, the better your chances are.

In Canada, some sites offer rankings of car loan companies based on interest rates, placement reports, sales, and overall satisfaction with services: http://www.yourloan.ca/auto-loans--credit/ Some other factors are considered as well, but the company with the best rating is the one that is likely to approve the highest number of loans with the lowest interest rate.

If you have a low salary or lack regular income on top of having bad credit, refinancing your car loan can be even harder. It is especially impossible to obtain refinancing in this case in Canada. Auto Credit Express is a company on the Canadian market that has the highest marks. About 95 percent of the applications have been approved in the last year; moreover, the company has adequate certification and good reputation. Borrowers have the opportunity to apply online. You can be certain that online applications are secured. They also offer the lowest interest rates on car loans. Auto Credit Express approves some applications immediately. This company has long-standing traditions in offering car loans to borrowers with bad credit. They offer a wide variety of loans, including loans for used cars, new cars loans, and other types of financing.

Choosing between different car loan consolidation to learn more check this guide: http://www.yourloan.ca/loan-articles/how-to-consolidate-c...

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Loans Canada is dedicated to all types of loans available to Canadian residents and Canadian businesses. http://www.yourloan.ca/