Best Auto Refinance Loans for Bad Credit

SuperMoney's list of the best auto refinance loans is based on the qualitative recommendations of our community members and the quantitative recommendations of our ranking algorithms. To find the best auto refinance loans for bad credit, we analyzed dozens of lenders. The offerings above come with flexible eligibility requirements, competitive interest rates, and good reviews from past borrowers.

The first thing you should do is figure out your current rates and terms. Then, research lenders to find the best bad credit auto refinance companies. Create a shortlist of lenders. Look for competitive rates, good reviews, flexible approval requirements, and streamlined application processes. Submit a refinance application with your chosen lenders and review your offers.

If you receive an offer that beats your current loan, sign the paperwork, and move forward. The new loan will pay off your old loan. Then, you will begin making payments to the new lender as per the new rates and terms.

A good time to refinance your car is when you can get a better deal from another lender. The chances of getting a lower rate increase when your credit score increases or rates drop due to market fluctuations. Refinancing may also help if you are having trouble making your payments and you need to lower them even if the interest rates remain the same.

It is possible to get a car loan with bad credit. Above, find a list of the best bad credit auto refinance companies. Car loans are secured, which means lenders have a way to recover losses in the event of a default. As a result, they are often easier to get than unsecured personal loans or credit cards.

If you want to get approved for a car loan with bad credit, start by applying with the right lenders. Every auto loan lender has its eligibility requirements. Look for those that focus on helping borrowers with bad credit (see the list above). Additionally, ensure your credit is in as good of shape as possible. Check your three reports (Equifax, Experian, and Transunion) to see if everything is up-to-date and accurate. If you can put any money down, you may want to offer it to improve your chances.

Some lenders will allow you to refinance your car after repossession. Although, it may involve catching up on the payments you owe and paying the fees from the repo process. Your credit will also likely have taken a dip due to the late payments and repossession. Lower credit scores mean higher interest rates. It may not be worth the trouble to refinance after a repossession. You may want to start fresh with a new lender and a cosigner.

Many lenders will let you refinance your car loan with them, but they may not offer you the best deal. Before making a decision, be sure to shop around.

The best place to refinance an auto loan with bad credit is with the lender that offers you the best deal. Keep in mind a low payment doesn't mean you'll save money in the long term. Some lenders offer a longer term to lower your payments, but you end up paying more in the end. Be sure to look at the interest rate, the loan's term, and total cost when comparing offers.

The process of taking out new credit hurts your score temporarily. When you apply for credit, you lose points from the hard inquiry. A new loan can also shorten your average age of credit accounts. The drop is only temporary, though. In time, the new loan can help your credit as long as you make your payments on time.