You probably know that you can refinance your mortgage, but did you know
that you can also refinance your car loan? In fact, lots of different types
of loan are available for refinancing--and you can even do-it-yourself by
taking out a new loan to pay off an old one. And even if you have bad
credit, it's possible to refinance any loan if you follow these simple
steps:
Look for a specialty lender. Some lenders specialize in "bad credit"
loans, which means they're used to working with folks in your situation.
They have many different types of loans available, and fairly lenient
approval criteria, so they'll be able to help you find a loan that meets
your needs. To find one of these lenders, try your local yellow pages or an
Internet search.
Be prepared with paperwork. Even if you have bad credit, you'll still
have to show the lender various types of documentation. Be prepared by
having proof of employment and income available, such as old pay stubs or
even a letter from your employer. You may even have to provide last year's
tax return, especially if you're self-employed or own your own business.
Understand you may have higher costs. Bad credit means you're a "risk"
from a lender's viewpoint, so your refinance loan will probably have higher
costs attached to it. Expect to pay a higher interest rate than average,
and possibly extra fees or charges. However, watch out for unscrupulous
lenders that try and tack on ridiculous or outrageous fees.
Be ready to wait a while. Although there are lots of different loans
available to even bad credit borrowers, you may have to wait a little longer
than usual to get your hands on the cash. That's because your paperwork
will need to be reviewed by lots of folks, and it may take some time to find
the right loan for you and your circumstances.
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You probably know that you can refinance your mortgage, but did you know that you can also refinance your car loan? In fact, lots of different types of loan are available for refinancing--and you can even do-it-yourself by taking out a new loan to pay off an old one. And even if you have bad credit, it's possible to refinance any loan if you follow these simple steps:
Look for a specialty lender. Some lenders specialize in "bad credit" loans, which means they're used to working with folks in your situation. They have many different types of loans available, and fairly lenient approval criteria, so they'll be able to help you find a loan that meets your needs. To find one of these lenders, try your local yellow pages or an Internet search.
Be prepared with paperwork. Even if you have bad credit, you'll still have to show the lender various types of documentation. Be prepared by having proof of employment and income available, such as old pay stubs or even a letter from your employer. You may even have to provide last year's tax return, especially if you're self-employed or own your own business.
Understand you may have higher costs. Bad credit means you're a "risk" from a lender's viewpoint, so your refinance loan will probably have higher costs attached to it. Expect to pay a higher interest rate than average, and possibly extra fees or charges. However, watch out for unscrupulous lenders that try and tack on ridiculous or outrageous fees.
Be ready to wait a while. Although there are lots of different loans available to even bad credit borrowers, you may have to wait a little longer than usual to get your hands on the cash. That's because your paperwork will need to be reviewed by lots of folks, and it may take some time to find the right loan for you and your circumstances.