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What to Know About Auto Refinancing with Bad Credit

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Auto refinancing helps thousands of people every year make changes to their existing auto loan. However, if you have bad credit, it’s difficult to know whether it’s possible to refinance. Even if it is possible for you, then you need to understand what makes the process worthwhile and how to proceed.

What Is Auto Refinancing?

Auto refinancing involves replacing your existing auto loan with a new one, usually from a different lender. There are several reasons you may want to replace your current loan:

  • You’ve seen an improvement in your credit score
  • Interest rates have decreased significantly since your last loan
  • You want to alter the payment period of the loan
  • You want to reduce your monthly payment in exchange for more interest over time

Can I Refinance With Bad Credit?

You can refinance with bad credit, but your options may be more limited. Technically, there is no minimum credit score to refinance your vehicle, but a lower score will reduce the number of lenders willing to work with you. To improve your chances of securing a new loan, you can:

  • Track your credit score with the Lending Lounge provided by Gravity Lending
  • Shop around for a lender that will accept your current financials
  • Add a co-signer to your loan
  • Offer a larger down payment

Refinance with Gravity Lending

Refinance with a new, perfect auto loan with Gravity Lending. Our team can help you lower your payments and interest, add or remove a co-borrower, or add additional packages like GAP coverage. Don’t wait, apply now for a new loan.