Lenders that are willing to provide bad credit auto refinance loans usually have a very specific set of criteria they use to qualify a borrower.
However, here are a few of the most frequently questions asked when people with bad credit are inquiring about refinancing their car loans.
Please keep in mind that the answers to these questions are generalizations.
The lender you approach for a refinance loan may have a completely different set of standards.
Q: If I have a bankruptcy or repossession can I still qualify? Each lender has their own set of standards that they use to qualify a loan applicant.
Many lenders will allow a bankruptcy or repossession as long as it has not been within the last 12 months.
Many lenders require a much stricter three year waiting period.
Q: How long do I have to pay on my current loan before I can refinance it? Some lenders will refinance an auto loan 30 days after its inception.
However, most require that you hold and pay on time the original loan for at least 3 to 12 months.
Q: Can I refinance any model car? Most lenders do not have stipulations as to the model car to be refinanced.
But, they do usually have limitations on its age and condition.
Q: Can I still refinance my car if I owe more money on it than it is worth? Most likely not.
Most lenders will be unwilling to refinance a loss.
Refinancing a car where the owner is "upside down" would be very risky for them.
If you found a lender that would refinance this loan for you the interest rate would probably be very high.
Q: My car is registered in the state of Florida but I live in Main can I still get it refinanced? Probably not.
Most lenders would want the car to be registered n the same state that you live.
Q: How much money do I have to make to qualify? Part of the answer to this question will depend on the value of the refinance loan.
But, in general lenders want you to have a minimum of $1600.
00 per month.
Q: If I am behind on my bills and loan payments can I still a refinance for my car? In general, no.
Lenders want to know that you are taking responsibility for your own finances.
Moreover, they want a general idea that they are going to get their money back in a timely manner.
Q: Can I refinance my car for more than I owe? Most lenders will not do this.
Bad credit auto refinance loans are already viewed by the lender as risky.
It is unlikely, they will allow you to do what is "cash out" financing with this type of loan.
Q: Will refinancing my car loan hurt my credit? Absolutely not.
When you refinance you car, you are actually paying off the original loan.
If you held the original loan long enough, usually about 6 month, then it should go on your credit report as a positive rating.
Also, opening another loan account will, in the long run, help your credit as well.