Getting a loan when you have bad credit sometimes requires some thinking outside the box, such as: B. Refinancing your car with expenses. A car equity loan for bad credit makes sense if the car you own is worth more than what you owe on it.
We review five sources of credit and tell you how they work, how to get them, and how to choose the best one. This type of car loan is a smart choice if you qualify.
Best Auto Equity Loans for Bad Credit
These five are credit intermediary services, not direct lenders. They can provide you with multiple auto equity loan quotes at no cost and without harming your credit.
If Auto Credit Express pre-qualifies you for an auto equity loan, a local auto dealer will contact you to discuss your loan options. If you like a deal, you can visit the retailer and close the deal that day.
The ACE network works because many car dealerships rely on in-house financing and don't check your credit. They approve auto loans with bad credit that banks typically reject. If you have the necessary income and equity, you should be able to get cash fast with auto financing.
2. Car.Loan.com Auto Loans Car.Loan.com Auto Loans can pre-approve your loan in minutes and instantly find a subprime auto lender to work with you. It has one of the broadest online networks of auto dealers and specializes in financing tools for consumers with low credit ratings.
These lenders can meet with you to refinance your car as quickly as possible. 3. Lease tree
LendingTree is best known for its mortgage and personal loan businesses. But it also operates in the auto loan space and can get you up to five offers within minutes of applying
When selecting a loan offer, you can quickly fill out the paperwork and submit it for final approval. Many applicants refinance their cars in less than 24 hours.
4. Refit RefiJet's nationwide credit network delivers competitive auto refinancing offers quickly, without jeopardizing your credit score. You can pre-qualify in minutes online or by speaking to a RefiJet financial specialist who will help you review your options.
RefiJet lenders will usually waive your first monthly payment for the first 60 days. Loans arranged by RefiJet can free up your car equity and provide you with quick cash to spend as you please.
5. myAutoloan.com myAutoloan.com helps consumers quickly access a variety of refinancing offers. The network's website offers interest rate estimators, current loan rates, and loan repayment calculators.
Some lenders in the MyAutoLoan.com network defer your first monthly payment for up to 90 days. Carefully consider loan offers before agreeing, as everyone has different repayment terms, interest rates and monthly payments.
What is an Auto Equity Loan? Your vehicle equity is equal to the current resale value of your vehicle less the balance of the related loan. If your equity is positive, the lender may offer to refinance your auto loan for more than you paid. The new loan pays off the old loan, and you pay the rest out of your own pocket.
Withdrawing cash from the value of the car is just one of the motivations for an auto equity loan. You may also be interested in lowering your overall expenses or monthly loan amount. A good time to consider an auto equity loan is when:
You have improved your credit rating You can get lower interest rates You are unhappy with your current lender
You want to reduce your monthly payment by extending the repayment period An auto equity loan is not much different from a secured loan that you can use to finance the purchase of a car. Equity on your current car is similar to a down payment on a new car - it's your "benefit in the game" of getting a vehicle equity loan. All financed cars are vulnerable to repossession if the borrower fails to make payments. This cushions the lender against losses, which is why you can get a car loan with bad credit. If you've ever had a home loan or line of credit, you know the risks of repossessions in the form of foreclosure. Lenders exclude home equity loans in the same way they exclude primary mortgages. A home equity loan is technically a second mortgage. An auto title loan is different from an auto equity loan. A car title loan is an expensive short-term secured loan for a car that is already paid off. An auto title loan is not a traditional loan agreement. Title loans typically only allow you to borrow a limited amount of the car's value, and the interest rates are high. You hand over title to your vehicle to your lender for easy repossession should the need arise. Statistics show that vehicle title loans have a 20% chance of repurchase. It is best to avoid title loans unless you have no other choice.