Can I refinance a car with horrible credit or can I add the amount into a debt consolidation loan?

Answer 1

There are some ways to refi a car with bad credit but they generally require equity in the car. Banks will want an investment from you that reduces their risk on your current loan or does not create too much risk with a new lender. Companies like American General do these harder kinds of loans. Also, you may be surprised to find a credit union willing to help you. My CU just refi'd my $2000 past due loan with no other creditors being paid as agreed because I was paying them $200 a week for 3 months to get caught up. They just decided I was more likely to pay if I could pay $409!!! New loan and no longer past due!

Answer 2

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Answer 3

Please be careful doing that, and do an online search of the company you're thinking about borrowing from, to see if they already have a class-action lawsuit against them.

My ex-husband and I thought it would be a great idea to take out a 2nd mortgage to help pay off our credit card debt faster. The company we took out the mortgage with sold our loan to another company, which was extremely dishonest. They charged unbelievable late fees ($1000 fine for a late payment) and would say that they didn't get the payments on time, even when they did, so that they could charge the late fee.

There are an awful lot of companies like that out there, now, and it's an absolute nightmare trying to deal with them!

It's best to try to go with a local credit union or bank, if you can. Stay away from the big national lenders. Unfortunately, the ones who will give loans to people with poor credit are often the worst ones.

Answer 4

Speaking as a nationally known personal credit score expert (book, radio shows, newspaper column)...

Car salespeople and car finance managers are regularly telling buyers they can refinance later once their credit is better.

The problem is that most cars are financed for more than their sales price. As soon as you drive it away, you owe far more than the car is worth. That is called being "upside down" on a debt.

With little or no down payment, people are "upside down" for 3 years or so on domestic autos and 2 years on Japanese autos if they were purchased new.

You would have to find a lender that would be willing to refinance the debt compared to what the vehicle is worth.

I think you should work to raise your credit scores, and the first thing to do is make sure ALL of your payments are on time.

Answer 5

Be wary of the debt consolidation loans and by God, take time to read EVERY SINGLE WORD in SMALL FINE PRINT and ask plenty of questions before asking.

Finally, you will need to OWN the car (with no debt attached to it) to be able to use it effectively to help you get out of debt.

Any other scenario is simply rearranging the deck chairs on the Titanic.

Don't be afraid to moonlight your way into wealth. There is nothing sinful about a TEMPORARY second job to get your affairs in order.

Answer 6

Debt consolidation could be a help in the quick term. it may shrink your month-to-month money. this is deceptive although. you're able to be able to nicely be paying extra in the long-term, yet once you're able to be able to desire to liberate month-to-month funds money to evade build up debt, somewhat credit card, it ought to be the terrific element. the terrific attitude is the create a plan which will pay off your debt, faster, fairly than later (to shop on interest money). additionally, shop your credit status intact. the somewhat some debt help courses obtainable'll act on your behalf to shrink what's owed, and wreck your credit status, which will stick to you for an prolonged time. this could arise while making massive investments like a house and the expenditures which you will get.

Answer 7

Yes you can, but remember, it is hard to borrow ourselves out of debt

Answer 8

If you have "Horrible" credit, I doubt if you can do either.