How can I refinance a car loan with bad credit?

Can I refinance my car loan with bad credit? These monthly payments are too high, and my buddy said I could lower them by refinancing my loan.

Answer
Your buddy is right; refinancing is a great way to lower your monthly payments. Finding a lender to help you refinance is challenging when you have bad credit, but it’s not impossible!
The best place to start would be finding finance companies specializing in loans for folks with bad credit. If it doesn’t look like they’ll give you a better deal, ask your current bank if they can use your short-term payment history to offer better terms.
Another option is to find a co-signer for your loan. Since co-signers agree to cover any missed payments, you’d likely be given a much better rate. Ideally, you can get a close friend or family member with good credit to cosign your loan.
Refinancing with bad credit can be tricky, but you may be in better shape than you think. Your credit gets reassessed every month, so keeping up with current debt can quickly improve your overall score! Try downloading a free credit checker like Credit Karma to get a better picture of where you stand.
The refinancing process can be stressful and confusing, but it’s easier than ever with Jerry. A licensed broker, the Jerry app can help connect you with top refinancers in your area. That way, you can be sure you’re getting the best rate for your budget.
Shannon Martin
Answered on Nov 01, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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