- 1). Improve your credit rating in any way you can. When you have poor credit rating, relatively small changes in credit behavior can have a significant impact on credit score and your ability to get loans. Settle debts that have gone to collection. Pay late accounts. Dispute any errors on your credit report.
- 2). Look for subprime and hard money lenders who offer refinancing for existing vehicles. It is unlikely that you will find a better rate than your current loan unless your credit has improved significantly from when you first acquired it. Subprime lenders will run a credit check and require at least some proof of income or ability to pay. Hard money lenders may give you a refinancing loan with minimal information requirements. Bring pay stubs and bank records with you to a meeting with a loan officer to demonstrate your income and ability to pay for a new loan.
- 3). Contact specialized refinancing companies that may be able to give you a new loan with relatively minor modifications relative to your current one. Some examples include getting a loan with a longer repayment period to lower monthly payments. These companies may also be able to provide better refinance rates due to their specialization.
- 4). Maintain a good driving record. Bad-credit companies may be more willing to extend you credit if it is less likely that your finances will be disrupted by a car accident.
previous post