With our current economic crisis not showing any signs of recovery, many debtors have found themselves in a position where they can no longer properly manage their finances. Banks are now much less willing to lend out money than they were in previous years and most lenders will require that the customer has am impeccable credit rating before they will even consider lending that individual money.
This is especially true when it comes to financing a home or a vehicle.
Other than our current mortgage crisis, car loans are another form of debt many borrowers out there are struggling to maintain. Many borrowers around the nation have begun missing payments on some of their debts because they were trying to keep up on other debts, therefore a lot of borrowers credit ratings have gone down the drain. Every time you are late, or do not make your monthly payments, your lending company is going to report this to the credit bureaus.
Your car payment is likely your second largest debt next to your mortgage. If you are in a similar situation and in need of some financial assistance, you may want to look into refinancing your vehicle. Many people do not know that a refinance may be possible for those with less than perfect credit. There are quite a few lending institutions that may be willing to offer this assistance depending on the borrowers situation.
Lenders will look at the borrowers entire financial situation when deciding whether or not to approve this type of assistance. If the borrowers credit rating is poor due to missed car payments, paid less than the minimum amount, or was late on their car payments it will be extremely difficult to get approved for a refinance.
The first thing you will want to do is to research your current auto loan. Find out how much your car is currently worth and how much you still owe on the loan. There are websites online that will give you an estimate for the value of your vehicle. This information is very important because lenders will not refinance if the car is worth less than the amount owed on the loan. Borrowers who owe more on their loan than the car is worth will have to wait until the cars value is more than the amount owed on the loan. Remember, once the car leaves the lot and begins to accumulate miles, it will immediately begin to depreciate in value.
If you decide that you want to go for a refinance on your vehicle, be aware that some lenders may be hesitant to sign off on the refi because of the bad credit situation and may require there be a co-signer on the loan. Remember you are considered a risk to these lenders because of the poor credit history and therefore they may require you have a co-signer with good credit.
In many cases you can easily fill out an application right on the lending institutions website. This will make the process much easier and save you a lot of time as well. Always make sure to compare various lenders to ensure you are getting the best deal possible. there are subprime lenders out there who do not make it difficult to achieve poor credit financing. But be very wary and do intense research before deciding who to go with.