Having a bad credit score affects you in a lot of ways, but what if you want get an auto refinance loan? In this article I am going to explain you can get bad credit auto refinance loans in 2020 easily.
You are also going to get the list of the companies that refinances auto loans for people with bad credit loans. Maybe you are caught up with a loan that has high interest rate or the monthly payments is too much, you can refinance it.
The main problem is when your credit score is low; you can either try to improve the score and history or find lenders or companies that can help you refinance your current auto loan even with you having a bad credit score.
Bad Credit Auto Refinance Companies 2020
Road Loans: This is by far the best best auto Refinance for Bad Credit scorers. The only disadvantages of this company is that their interest rates are not disclosed at all and it is not available for all states.
Apart from those disadvantages, they don’t need any credit score before you can apply for the auto refinance loan; this is great news for people with bad credit scores. Roadloan is a direct lender and the company is currently based in Dallas.
RoadLoans work with brands like Chrysler, Fiat, Alpha Romeo, Jeep, Ram, lending tree, carmax and Dodge. People from Alaska, Nevada, Hawaii, Mississippi and New Hampshire are not allowed to apply.
Their annual percentage range is also not disclosed, you can easily apply for an auto refinance loan online and it will take between 1-2 days to get approved or rejected. The least you can apply for is five thousand dollars ($5,000) and the maximum is seventy five thousand dollars ($75,000).
Repayment duration is up to 6 years (72 months), of course they don’t post anything about their rates but you should expect it to be quite high due to the fact that they don’t have any credit scores requirements.
Auto Credit Express: This company is not a direct lender, they only connect you with the lenders that may be able to give you an auto refinance loan. You must be at least 18 years of age and have minimum monthly income of $1500. Even if you have a bad credit score you can still a chance at auto credit express.
The annual percentage rate of this company varies and their interest rate type is fixed. Only residents of Canada or US are permitted to apply. Auto credit express is able to aid you with a lender that can refinance your auto loan at a better rate.
As I said before their rate varies and depends on the lender, but you are likely to get a high rate if perhaps you get approved. You will need a proof of your residency, government issued ID card and complete verification of your income while applying.
Capital One Refinance: If you are want to pre-qualify for an auto refinance then Capital one is definitely for you. Their annual percentage rate is between 4.07% and 24.99%, it can go as really high as 25%. The minimum amount you can refinance is $7,500 and the maximum is $50,000
People can apply from all states excluding Alaska and Hawaii. The minimum required credit score for auto refinancing is 540. If your credit score is less than 540, then you probably should check other companies that accepts a lower score or does not require any credit score.
Once you apply for auto refinance, you will get an approval or rejection within 24 hours. Also note that a hard credit inquiry will be needed. For Auto Refinance you can increase the duration of your current loan up to 12 months.
You also need to a monthly income of at least $1,500 – $1,800 which depends on your credit score before you can apply for refinancing. There is no application fees attached and co-applicants are permitted.
Capital One does not refinance Suzuki, Oldsmobile, Saab, Isuzu or Daewoo vehicles, boats, motorcycles, motor homes, ATVs, commercial vehicles, camper vans, recreational vehicles or vehicles without a Vehicle Identification Number (VIN).
Read Also: How Many Times Can You Refinance Your Car
myAutoloan.com : Myautoloan can refinance your current auto loan which can automatically reduce your interest rates and/or your monthly payments. It only takes a few minutes to apply on their website. Note that this company is not a direct lender.
It works in four easy step; you apply o myautoloan website, you get matched with the lenders, you receive your check or certificate online if you get approved and then you can use the check given to you to refinance your current auto loan.
This company has an annual percentage rate of 2.49% – 29.4% for refinancing loans, your rate will depend on your credit score and income. Residents from all states in the United States are allowed to apply except for Hawaii and Alaska.
The minimum credit score required for refinancing loans is 500 and you also need to have a monthly income of at least $1800/month. With that said, the minimum amount you can apply for is $8,000 while the maximum is $100,000.
OpenRoad Lending : This company specializes in auto loan refinancing and has helped a lot of people refinancing their auto loans. Their APR ranges from 2.9% – 24.9% and the minimum amount you can refinance is $7,500 while the maximum is $100,000.
People from the following states are not permitted to apply for refinancing loans;
- New Hampshire,
- North Dakota,
- South Dakota and Wisconsin.
All other states in the United States are permitted to apply for an auto loan refinance.
OpenRoad Lending requires that you have a minimum credit score of 500 and a monthly income of $1,500/month (you must also not be self-employed). According to the company “we save 5.6% off the existing annual percentage rate of our customers”.
Lending Club : According to the company; “customers decrease their car payment by $80/month on average”. Their annual percentage rate is between 3.99% and 24.99% depending on your credit score.
Before you can apply for an auto loan refinancing even if you have a bad credit score, the following are required:
- You must have a minimum credit score of 510 (Your monthly income is not needed).
- Your current auto loan that you want to refinance must have an outstanding balance of $5,000–$55,000, at least 24 months of remaining payments and must have been initiated at least 1 month ago.
- Your car must be less than 10 years, personal use only and under 120,000 miles.
Only people from the states below are allowed to apply for Lending Club auto loan refinancing:
- New Jersey,
- South Dakota,
- New York,
- South Carolina,
- Rhode Island,
- New Mexico,
- North Carolina,
Also note that Lending Club allows co-borrowers in case it’s a joint loan.
Tresl : This company was formerly recognized as Innovative Funding Services and they provide refinancing for auto loans. Residents from all 50 states in the United States are allowed to apply for auto loan refinancing.
Tresl has an annual percentage rate of 2.49% – 23.99% which will determine the interest rate. You need to have a minimum credit score of 500 and a monthly income of $1,500/month before you are eligible to apply for an auto loan refinance.
To qualify for refinancing, you must have owned the vehicle for at least 6 months and a maximum of 10 years. The least amount you can refinance is $5000 while the highest remains $100,000.
Who Refinances Auto Loans With Bad Credit?
There are companies who refinances auto loans with bad credit and I have listed some of them above, however the more bad your credit score is, the higher your APR will be. If your credit score is bad, be expecting some high rates.
Best Auto Refinance with Bad Credit
Road Loans is the best company for auto refinancing with bad credit. This is because they don’t need your credit score at all before you can apply. So can people with a really bad score of 300 below apply?, yes they can. The only thing you should care about is their rates which are not disclosed.
Bad Credit Auto Refinance Direct Lenders
Only RoadLoans and Capital One are the only direct lenders that can refinance your auto loan with bad credit.
Auto Refinance Rates For Bad Credit
As I said before, you should expect high rates if you are applying for an auto loan refinance with a bad credit score. There is no general rates for bad credit as it varies depending on the lender.
However you should expect a rate between 2% and 30% (this is just a rough estimate).
In conclusion, you should only refinance your auto loan when there is a good reason to do that. Improving your credit score and history will automatically make Lenders to give you loans or refinancing at a lower APR and monthly payments.