Car Refinancing Truths And Myths

by Charles Martin on March 1, 2012

Your monthly payments and the rate of interest could be substantially reduced by refinancing your car. However, this is easier said than done for refinancing of an auto loan for a high-mileage vehicle is a totally different ball game. Being in the high risk category, loaners are reluctant to consider extending auto refinance loans for your high mileage car. In spite of many inhibiting factors, you could still refinance your high mileage car by following some worthwhile tips given below.

Determining your Current Position

Go through your copy of the credit report, if you have one. If you do not have right-away, ask the three reporting agencies to furnish copies of your credit report. You will get to know your current standing with respect to credit rating and ascertain if you would qualify for the type of loan you are opting for. The types of loans offered depend on your current credit score. In case, your credit score is high, you have more leeway to consider the type of loan you may require. In case, your credit score is low, you will face a tough time for the loan you require.

Now check on your FICO score for this is the determinant for your creditworthiness. This parameter is a three digit number between 300 and 850. If you happen to have a score of 720 or higher, it implies that you are a good creditor. If your score is less than 500, you are a considered as a bad credit holder and your chances getting refinance for high mileage car are remote.

Evaluation

Ascertain the value of the car by using Kelley Blue Book as a guide. This is the most effective tool employed by the loaners and dealers for arriving at right values of cars. After you get to know the value of your car, compare it with your existing car loan balance liability. It will be a challenging situation for you if the value of the car is lower than your outstanding as on date.

It would be good sense to avoid applying for high mileage car refinancing from banks and credit unions. Your request will be turned down due to the vehicle’s mileage quantum. You may submit your application for refinancing to finance companies by providing the necessary documents expeditiously to speed the process of approval. If you have not been able to source refinancing for the car, try for personal loans with lower interest rates to pay the remaining balance.

Are you in the market for a car loan. Whether you are looking for a car loan in Dallas Texas or any other part of the country Cardownloan can help you find good deals on bad credit car loans regardless of your work situation. Just fill in a 60 seconds auto loan application

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