How to Refinance a Car if You Have Poor Credit Applying for a car refinancing loan used to include dressing up and going to your local bank or credit union in the hopes of impressing the loan officer enough to have your application approved. But times have changed. In today’s world, you may apply for a loan — and perhaps get approved — without ever having to leave your bed.
Can I buy a car with bad credit?
When it comes to getting accepted for a vehicle loan, your credit history plays a significant role. Not only that, but the credit card you use will have an impact on the interest rate you pay while financing your purchase. Unfortunately, getting a vehicle loan with negative credit is difficult, even if you have a steady source of income and a long work history.
How does bad credit affect car loan interest rates?
If you have terrible credit, you will almost always pay a higher interest rate, but be wary of any loan rate that is more than double the national average. Your loan rate will have an impact on not only your monthly payment, but also the price of the automobile you are able to acquire in the future.
What are bad credit car dealerships?
Buy-here-pay-here (BHPH) lots and poor credit vehicle dealerships are both terms used to describe these types of lending establishments. In contrast, car dealerships and other subprime lenders often demand greater interest rates on their loans than credit unions and banks do on their own loans.