How to refinance a car with your history of bankruptcy
Refinancing a car helps you lower down the monthly payments and the interest rates
. Getting a refinance loan or auto financing after bankruptcy is easy for individuals with good credit. Refinancing loans however are harder to obtain when you possess bad credit or a history of bankruptcy. There are, however, a few things you can do to help yourself get auto refinancing despite history of bankruptcy.
Visit or contact your current lien holder and request the quote for early payoff. It is important to for you to determine the amount needed to clear the current loan.
Try to know the estimated value of your vehicle. Most banks and other lenders use the NADA trade value as the standard guideline in calculating the amount of loan that they can provide for a vehicle.
The amount of loan you can get to refinance the car depends on the assessment of the vehicle's value by the lender. When the value of the car is more than the recent payoff, it is possible to obtain refinance loans. However, when value of the car is lower than the current payoff, this could mean that you might be having a hard time looking for refinance loans.
Lenders usually offer refinance loans that covers 100 percent of the vehicle's value. However they might offer lower percentage for individuals with history of bankruptcy or bad credit status.
Shop for refinancing loans by visiting several lending institutions and banks. Make sure to bring along the necessary documents such as the current payoff amount, proof of monthly income, and identification. Don't forget to bring along your proof of bankruptcy discharge.
Search for the best refinance rates by getting refinancing quotes from two or more lenders. Compare the rates they offer such as the monthly payments and the interest rates. Select the best rates and apply for refinancing. Negotiate with lenders and do not hesitate to ask questions from the when it is necessary.
How to refinance a car with your history of bankruptcy