Frequently Asked Questions about Bad Credit Auto Refinance Loans

Here are the answers to the most commonly asked questions about bad credit auto refinance loans.

What are bad credit auto refinance loans?

Bad credit auto refinance loans are refinancing loans that are specifically designed for those with significant credit challenges. Refinancing can help you reduce your interest rates and your monthly payments, but some consumers may not qualify for traditional auto refinance loans. For these borrowers, bad credit auto refinance loans provide a way to save money on your car loan even if you have less-than-perfect credit. If you choose to refinance, you will take out a new loan to pay off your existing car loan.

What qualifies as "bad credit"?

For lending purposes, "bad credit" is usually defined as a credit score of 620 or below. This definition sometimes varies from lender to lender, though. Usually, consumers with credit scores at this level have had issues with late payments, charge-offs, bankruptcy, and other credit challenges. You can learn about improving your credit score on the next page.

How do I sign up for bad credit auto refinance loans?

You can sign up for bad credit auto refinance loans by filling out our simple, online form. The form will ask you only for basic contact information and takes just a few minutes to complete. After we have your information, we will provide you with at least four free quotes on bad credit auto refinance loans. You will see the quotes side by side to help you compare loans easily. If you see a loan that meets your needs, you can then apply for it on the lender's site. You can also save your quotes and return to our site at any time.

Are you a lender?

No, we are not a lender, and we do not actually issue bad credit auto refinance loans. We are a free matching service that connects our visitors with lenders that offer affordable bad credit auto refinance loans. We partner with many certified lenders across the country that specialize in writing loans to customers with below-average credit.

Can I use the equity in my home to refinance my car loan?

Yes, bad credit auto refinance loans that are tied to your home are a possibility. These loans use the equity you have in your home as collateral in issuing your refinancing loan. Home equity auto loans usually offer lower rates than traditional bad credit auto refinance loans. On the other hand, these loans are much riskier than traditional loans because, if you fall behind on payments, you stand to lose your home.

When should I refinance?

If you are unsatisfied with your current auto loan and think you could get a better deal elsewhere, you should consider bad credit auto refinance loans. Bad credit auto refinance loans can lower your interest rates, reduce your monthly payments, and help you build equity in your car faster. In addition, if you are upside down in your loan, meaning you owe more on the car than it's worth, bad credit auto refinance loans can help you get out of this situation.