In general a bad credit score will require paying much higher interest rates. Sometimes it can also adversely affect your getting auto refinance. It can cause you to pay more for insurance. Although it is beneficial to refinance your car loan during the early stages and particularly before third or fourth year, the benefit after the fourth year is much less.
The interest on your car loan is paid during early payments and therefore you should seek auto refinance as soon as interest rates come down. People having a bad credit score are required to pay very high interest rates, even up to 20 to 25% percent. It is very difficult to pay this for a long term. The following tips are useful for people having a bad credit score.
1. Wait for few months: Wait for at least 3 to 6 months after taking the first car loan. After a period of 6 months you can start looking for auto loan refinancing companies. In refinancing you are not taking out more loans. You are just making a transfer from one financial institution to other. By transferring the loan you can reduce your APR. Most of the time financial institutions do not object to such a move.
2. Get help from...
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