If you are struggling to make ends meet, lowering your payments with bad credit car refinancing could be the answer. When you refinance your vehicle you are often able to lower your payments, rather or not your credit score has improved. There are a few different ways to do this that may be options for you.
How Car Refinancing Lowers Your Payments
Car refinancing lowers your payments in one of two ways:
- Extend the length of your loan term
- Lower interest rates
While both options lower your monthly payments, they have different end results. You may ultimately pay more for the car when you extend the length of your loan term. However, when you don’t have enough money coming in each month you probably don’t care about that.
Lower interest rates are possible if your credit score has improved. If your credit was truly horrible before, but is now just bad, auto refinancing with bad credit can lower your interest rate. This will allow you to pay less for the car in the long run.
Advantages of Auto Refinancing with Poor Credit
There are many advantages when it comes to auto refinancing with poor credit. The most obvious of these is that you’ll have more cash in your pockets. This can be a huge advantage if you’re behind on other bills such as your Toronto hydro or home heating fuel bills.
Reworking your car note can also help you to start an emergency savings fund if you don’t already have one. One of the worst things that can happen if you have bad credit is to suddenly be out of work or have a huge medical bill. When you have some money in the bank, that sort of problem won’t be as bad.
Here at CanadaAutoApproval.ca we offer guaranteed refinancing for bad credit. This means we will approve a loan for anyone. We also have competitive interest rates, so even if your credit score hasn’t improved you may find yourself with a lower interest rate.