The Secret Weapon -Bad Credit Auto Refinancing Loan
We recently received an enquiry from an uninformed consumer who didn’t know that a bad credit auto refinancing loan existed!
I’ve suffered from bad credit in the past and when I needed a new car I had to take out a bad credit car loan. The interest rate is really high, but I have made sure that I have kept up with my payments religiously. Is there anything I can do to reduce the interest rate and the monthly repayments? I would like to have a little bit more cash in my back pocket!
Congratulations on keeping up your repayments!
The key to reducing you car loan repayments is to take out a bad credit auto refinancing loan. We tend to refer to this as the secret weapon of reducing car loan payments - even if you do have bad credit!
A bad credit auto refinancing loan is a new loan agreement that will simply pay off your existing bad credit car loan with a new loan with a lower Annual Percentage Rate (APR).
Things to remember:
- The 1% rule. If a bad credit auto refinancing loan doesn’t provide you with a lower interest rate of your current car loan of at least 1%, it ain’t worth switching!
- Online lenders will normally have lower rates as they have lower overheads.
- Check that there aren’t any prepayment penalties with your current loan. This could make switching the loan more expensive than keeping it.
- When applying for a bad credit auto refinancing loan make sure that you use exactly the same information you did to your previous loan company, with no discrepancies.
- Do it sooner rather than later to save yourself loads of money on interest. 1 year is the golden rule of thumb. Now you have shown that you can repay the loan with a high APR for a year you should be able to get a bad credit auto refinancing loan at a lower rate than your previous deal.
We hope this helps you!
As auto loan refinancing has increased by 75% in the last two years then perhaps a bad credit auto refinancing loan isn’t so much of a secret weapon any more! We have certainly unwrapped the secret for you and anyone else who may be reading this!