Free Article tip for loans

Plan to refinance your auto loan but have bad credit? You can still find financing at reasonable rates by searching online for your lenders. Researching rates and terms will lead you to a good deal
saving you money each month. Increase your odds of getting approved for the best loans by following these tips.

Think About A Co-Signer

The better your credit score
the better your rates. So if you don’t have great credit
look for someone who does. By having them co-sign for your loan
you can find yourself qualifying for much better rates. Lenders look at your co-signers record
but you pay for the loan.

If you are a couple
you may also choose to use the person with the best credit score to apply for the refinance auto loan. You can find out who has the better record by requesting your credit score online.

Update Your Credit Report

While you can’t change your credit report overnight
you can be sure it is in the best condition possible. Take a few minutes to review your free copy and make sure all information has been updated. You may also want to include an open letter explaining any reasons for your bad credit score. Mitigating factors
such as a job loss or illness
are sometimes considered by lenders.

Eliminate Old Debt
Hold Onto Cash Assets

Besides your payment history
lenders also look at your debt and cash assets when considering your loan application. The less debt you have
the better you look to lenders – especially if you have a high income.

Cash assets are also important. Lenders like to see at least six months of cash reserves in the bank. This can mean a savings account
money market
or CD.

Be Honest With Your Information

More than likely
you will be approved for refinancing. What rates you qualify for depends on your information. So to get the most accurate loan estimate
be honest about your credit background. That way
when you actually apply for the loan
you will be approved for the rate quoted.

Remember too that not all lenders charge the same rate. A careful search will bring up favorable rates
even for those with poor credit. Sub-prime lenders often provide loans on a point or two