Aug 2

While it may not be the ideal climate in which to apply for loans with bad credit, there is still hope for those with bad credit who want to refinance. Keep in mind that you’re unlikely to get ideal credit terms. As a result, those who are just looking for a lower interest rate may not find that to be an option. Unless your original loan had an extremely high interest rate, you can expect for your new loan to have a higher interest rate than the original, or equal to. However, the main advantage is that you could extend the length of your loan which equals lower monthly payments.

If you are going to try to refinance with bad credit then the best plan is to begin with your lender. Inquire about whether or not they’re willing to renegotiate the terms of your loan and give you a longer term or lower interest rate. You’ll have the best chance if you’ve made your payments on time each month. Keep this in mind if your loan begins to be more than you can handle – there will be a lot more help if you get it right away versus waiting until you’re several months behind.

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