Today, with interest rates on car loans at an all time low, even people with bad credit can have the option to refinance their auto loan. You do not have to be stuck in your high interest car loan. We all can get into credit problems, some of which is unavoidable due to unexpected expenses, loss of a job, illness, divorce and the list can go on.  Let’s concentrate on the Now!  By refinancing your auto loan, you can lower your monthly payments and/or shorten the time you will owe on your car.  This will give you some breathing room with your bills and also an opportunity to improve your credit rating. What do you need to do to obtain refinancing on a used car loan?

• Find out what you still owe on your car loan.  You can call your lender or look on your recent loan statement.  What is the payoff of your loan?

• You need to determine what your vehicle is worth.  To do this, you need your car information: Year, Make, Model, Mileage and your VIN (Vehicle Identification) number.  Then find Kelley Blue Book on the internet and fill in your information.  They will give you the loan value on your vehicle. This is what the lender will use to determine how much they will lend you.

• Hopefully you have maintained a good payment history on your present loan.  This will help you with obtaining your refinanced auto loan.  If not, at least be current with your loan payments when you apply for this loan.  It will help.

• Start looking for lenders that specialize in bad credit auto loans.  Make sure you shop around to find your best options of low interest rates and terms of loan.  Even though you don’t have the best credit, it doesn’t mean that there are no options for you.  Watch out for hidden fees they may charge you.  Check out the Loanstore.com.  They specialize in these loans and would be happy to help you out.

There are always options out there for people with bad credit.  If you do get the opportunity to refinance your current car loan, you need to take advantage of the opportunity to improve your credit.  You need to pay your bills on time and continually pay off bills. By doing this, you will your improve your options when borrowing money the next time.