Refinancing Your Car With Bad Credit

by Gray Peters

Out of all the problems associated with having bad credit, getting a car refinance loan often isn’t one of them. Refinancing your car with bad credit is fairly easy, due to the fact that the car serves as collateral. A willingness to put up decent collateral is often reciprocated by lenders, who suddenly become willing to deal with you.

There are several possibilities for refinancing your car with bad credit (we could be talking about $5000 auto loans – or much bigger numbers). The best of these options include banks and other well-established lenders. Many of them even have online applications where they specifically solicit bad-credit customers. Even though interest rates are higher for people with bad credit, these lenders are often about as good as they get in the industry, with repayment terms being fairly straightforward. These operations, as a rule, will stick to the contract, so you can rest easy knowing that if you pay the bill, you keep your car.

In cities of any decent size, it is possible to find independent lots who claim that they are willing to lend to everyone who has the ability to breathe. This part of the car-refinance industry, unfortunately, has a big reputation for being shady or worse. Horror stories abound. Therefore, it’s best to avoid these operations, and go for a big lender, preferably one which is nationwide or at least statewide. Large lenders, if only because of their size, have to withstand more regulatory scrutiny. Therefore, big lenders are more likely to play by the book.

One good source of car refinancing may be a bit surprising. There are credit card companies which also have auto and even home refinancing arms. Some of these companies specialize in dealing with people who have bad credit. Refinancing your car through them can work very well.

Refinancing your car with bad credit does not have to be hard or cause undue grief. With good research, you can find plenty of reputable companies to deal with. When looking online, look for car refinance deals which are attached to banks or credit card issuers. Many bad-credit lenders online also advertise through various affiliate sites and promoters. This is fine, as long as the company actually doing the lending is a reputable one. Look in the tiny type in any agreements you are asked to approve to see who is actually behind a bad-credit refinance offer, as well as to see all of the relevant terms and conditions.

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