how to refinance a car loan with bad credit

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By : Raam Dhakad

KYD - Personal Finance

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If you already have a car loan with bad credit and interest rates have come down since you bought your vehicle, or you need down payments at all, refinancing may be worthwhile.

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Like buying a new or used car, the refinancing process involves a lot of research. Let's go through how to refinance a car loan with bad credit.

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The first thing you should do when you start shopping for a new loan for yourself is to review your credit report and score.

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After checking your credit score, you need to check with the existing lender about the refinance options available.

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Depending on the lender you are in today, you may be able to check your rate without affecting your credit score.

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You must consider the banks or credit unions you currently do business with. However online lenders can also be an option.

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Whenever you submit a loan application, the lender will request proof of income, residence and information about your current loan.

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When you apply, you will also need to provide the mileage, make, model and vehicle identification number for your car

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When you apply, fill out the forms accurately to avoid discrepancies that could result in the rejection of your application.

Review the loan documents to make sure the terms and conditions work for you. If yes, sign on the dotted line to finalize the transaction.

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