Bad Credit Loan Refinance: Lower Your Costs & Pay Off Balances Sooner
OK, refinancing won't exactly rain money, but the monthly savings you get can feel like it, read on to find out how...
There are a number of ways to get a bad credit loan refinance which can help slash your monthly bills, and help you pay off what you owe faster. You can use refinancing to consolidate all your lending and eliminate your high interest debts. The monthly savings to your debt service can be dramatic. How you choose to restructure your balances will depend on your personal finances, choose the method that fits your needs best.
Bad Credit Refinance Car Loan Options
Remember, financing will vary in terms based on how bad your credit rating is. You can expect with lower scores you will pay a higher interest rate and face more rigorous application requirements because it is a higher risk for the lender.
Many people looking to refinance their auto loans initially purchased the vehicle using bad credit lending, and now that they have achived better credit they no longer want to pay the higher interest rates of their initial loan.
A bad credit auto refinance loan can also be used to borrow money against your cars value. If you have it paid off and hold title on the vehicle, you can use the car as security and improve your chances of getting financing approved, and getting you th money you need.
You will be asked to provide you income, employment stats and personal information as well as make and model of your vehicle when you apply. If you have outstanding balances on the care, you will need to provide the lien holder and amount owed.
You will be provided a quick quote online from the lender, you are under no obligation to proceed, if the terms are acceptable you can accept the new financing agreement.
- Rates starting as low as 6.45%
- Fast online quote and 24 hour approval notification
- Up to four competing loan offers at a time
- Auto loan refinance bad credit online
Refinancing Using Debt Consolidation
"Target your high interest debts without mercy..."
If you are looking to refinance high interest credit card debt applying for a debt consolidation will reduce your costs. Check out our recommended debt consolidation loans that provide easy approvals for people and may be able to help cut your monthly bills by as much as 60%.
If you are not a good financial planner, don't fret this lending will simplify things for you. When you hold multiple balances, each will have its unique repayment dates, terms and conditions that you must follow as the borrower to remain in good standing.
Credit card consolidaton helps simplify the management of your debt by simplifying with a single low interest rate loan as well as reducing what you owe on your monthly bills.
Immediately after financing funds, you will be able to pay off your cards and keep more money in your pocket from month to month..
If you are having difficult time paying for your monthly bills, you can even extend your repayment terms to spread costs over a longer term to reduce costs, even if interest rates remain relatively close.
Once you get bad credit refinance savings you can focus your extra money to pay down your balance faster, reducing how much you pay towards interest. Easing the burden of your monthly bills helps you make timely payments each month which with time will improve your your credit rating.
Bad Credit Home Equity Loan
One of the best options to restructure your high cost balances is to use the equity in your house. Financing of this type is very inexpensive compared to other lending products, which translates to bigger savings. The more equity you have built in your home the greater the amount you will be able to borrow through home equity lending.
Your equity value is the total value of your house less the amount of your existing mortgage balance. It is advantageous to refinance any debts that are of a higher less favorable interest rate. Why pay more than you have to, when you can refinance & restructure to save.
Most lenders will approve applications with a FICO of 640 or higher, or will work with people who have a bad financial history if you have have significant equity in your house.
Bad Credit Refinance Mortgage Options
You can further reduce your monthly mortgage payment by refinancing into interest only financing. A word of caution: your principal amount will stay intact, equity will not accrue from month to month, in other words you make no headway towards paying off your loan. You pay only the interest on your outstanding mortgage, no priciple. You make no headway, but reduce your monthly burden.
This is a good option if you know you are under water but will be able to increase your income in time -- you can use the extra savings to pay down other balances which are crushing you.
Interest only financing will have a low bill payment for the first few years depending on how your loan is structured. The FTC offers a guide to consumer financing that is useful for reference. However, a balloon payment is commonly required after the interest only grace period expires.
This type of lending buys you time, but it can be dangerous so carefully understand the conditions of the loan you are signing.
Alternative Loan Refinancing Options