America is a country of drivers. With city sprawls, busy lifestyles, and occasionally disappointing public transportation options, our vehicles tend to be our lifelines. So when bad credit or lack of funds jeopardizes your access to a car, it all can feel very overwhelming.
First, know that you’re not the only one in this situation – the current market crisis has put many people in tight spots financially. And even more importantly, it’s not the end of the world. If you would like to save some money on your monthly payment or have run into trouble covering your car loan, refinancing may be the right option for you.
How refinancing works is quite simple: Once you’ve found a new lender, they’ll pay off your existing loan and transfer the balance to their loan. By applying for a new loan, you’ll have access to a lower interest rate, smaller monthly payments, or both.
Transferring your loan to a more affordable option can help you improve your credit over time as well. There are many lenders out there who offer a way to start the process of credit recovery, and paying your auto loan on time is a smart step in reestablishing credit. Start the loan process online at a site like Car.com
, which works with finance companies to find you a lender that operates in your area and has the right loan for you.
When money’s tight, having just one month’s respite from a bill is a relief, and if you finance through Car.com
. You may even be able to skip a month of payments during the process, enough time to start getting your finances back in order.
If there’s no downside, why don’t more people get on board? The idea of handling the same amount of paperwork you had to wade through at the dealership is a big deterrent for some, which is why it’s a relief to know that filling out a refinancing request only takes about five minutes online.
These are tough times in America, and for many of us the crunch isn’t letting up. Refinancing isn’t for everyone – congrats if you scored a great interest rate on your loan off the bat, but for many of us, it can ease the burden of owning a car and help improve credit. After all, there’s nothing like having a little more cash in the bank at the end of the month.