Refinancing Upside Down Loan

In recent years lenders have lowered their requirements on car loans, making it easier for even those with bad credit get into a new car. The problem? These new car buyers end up upside down on their loan in no time. So what are your options when you have an upside-down auto loan and bad credit?

Well, you could save up the money to pay the loan off in a lump sum, double the amount you pay each month to start building equity, or refinance the loan. Even with bad credit auto refinancing is available, you just need to know where to look!

Bad Credit Refinance Lenders

It's a common misconception that refinancing an upside down loan is impossible. Although it's true that the refinanced loan is more of a "high risk" to the lender, there are some lenders willing to work with you. At SmallerCarPayments.com we work with a nationwide network of dealers willing to work with any credit situation.

Unfortunately, the most common way to refinance an upside down car is to extend your loan term. For example, if your original car loan term was for 48 months, extending the loan to 60 months with a lower interest rate will lower your payment, and help bring down the principle balance you owe faster. The down side to this is that you will be paying more over time for interest.

To see what kind of refinance rates you will be able to get with your credit, submit our fast and free refinance application today. You will be contacted by a financial specialist that will walk you through the process, and be there every step of the way. You could be into big savings and a right-side-up car loan in a few days!