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Refinancing A Bad Credit Car Loan In Campbellville

Refinancing A Bad Credit Car Loan In Campbellville

What are your options when it comes to refinancing a bad credit car loan? Can you end a loan like this early? Can you refinance to a cheaper loan?


We asked our Campbellville car loan team to explain your options.


In this context, we’re talking about someone who has a bad credit car loan and either wants to refinance it for a new car or because their credit score has improved enough to qualify for a standard loan.


Refinancing bad credit car loans in Campbellville


Refinancing a bad credit car loan uses exactly the same process as refinancing any type of loan. You need to check your credit score, check the settlement amount, check the car’s value and decide whether you can afford it.


Check your credit score


Bad credit car loans are usually for those with less than perfect credit scores. So, it stands to reason that you’re going to want to know your current score to decide whether it’s worth refinancing or not.


Check your credit report with either TransUnion or Equifax to see where you are. If your credit score is back in ‘good’ territory or better, you could qualify for a standard car loan.


If your score is a little short of that, you may be better off waiting a while.


Check the car loan settlement amount


If you’re still paying off the car loan, you’ll need a settlement amount so you know how much you’ll need to pay off. Depending on the lender, your online account should tell you or you can call them.


Either way, get the settlement amount and check that you’re not liable for an early settlement fee for paying the loan off early. Some loans include them and some don’t. Make sure you know whether you need to pay it and if so, how much.


Check your car’s value


Next, you’ll want to know the current value of your car. Whether you’re selling privately or trading in, knowing approximately how much your car is worth is essential.


Check Kelley Blue Book to assess its value. Remember to check like for like and get as close to the exact make and model as possible.


Bringing it all together


Now you have the information you need to make an informed decision. Take your current loan settlement figure, your car’s current value, the approximate value of the car you want to buy and put it all into a car loan calculator to see if you can afford it.


You will want work out the amount you want to borrow, less your car’s value plus the settlement figure for your current loan. This should give you an amount you’ll need to borrow.


If you can afford to repay it, get preapproved for a Campbellville car loan just to make sure.


Refinancing a car loan is a straightforward process as long as you do things in the right order. Refinancing a bad credit car loan is exactly the same as a standard loan and will involve the same calculations.


When you’re ready for a new car loan, call our team of experts who can find you a great deal.


We will use all our skill and experience to deliver the lowest possible Campbellville auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: Auto Loan

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