What should you do if you don’t have money to pay your car loan?

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SCOTTSDALE, AZ – Don’t you have enough money to pay back your loan? Are you in a financial crisis, with a loan on top of everything? The worst case is you losing your car, to make sure that doesn’t happen, you better refinance your loan.

Refinancing

To obtain another loan, you need to approach another lender. It’s not very difficult; you are getting someone to help you handle your car loan, and extend your payment window. But, you need to prepare yourself to apply. Following, we are giving you some tips:

Collect info about your old loan, most recent statement from the lender will have everything your new lender needs to know

You have to get information about your car including the VIN, Make, Model, and production year

You need to obtain the proof of your income so the lender can verify your ability to pay back another loan

Once you have taken care of these, you need to submit your application with important documents. Prepare yourself to answer their questions, and be patient, they need some time to review your application.

Don’t Make These Mistakes

Refinancing can help you to Repair.Credit but you may end up wasting money instead of saving. You have to avoid common mistakes, especially if you don’t have much time left to pay your old loan.

  • Stretch Out

A longer-term means you have to pay more for your vehicle. You may want to switch from 48 months to 70 months,but you may have to pay more interest at the end. Refinancing is meant to provide you financial relief, not to push you into financial turmoil.

  • Make Things Worse

Extending your loan may lead your financial life upside-down.  This way, you may have to pay double amount than the worth of your car. To make sure you don’t fall, you have to write a cheque, and make payments for your car.

You need to make payments even if your car loses value. Make sure you pay off your loan in time, so if you may want to change your car, you can do it while your old car still retains some of its value.

  • Waiting to Refinance

You did the math, and you understand refinancing your loan is the only possibility. Waiting will cost you dearly. It’s crucial because refinance is only possible with newer models, not old. So you need to make sure you apply for refinancing within two years.

  • Skipping Installments

If you have skipped more than three payments in a row, it will kill your chances of getting your loan refinanced.  Therefore, you have to be extra careful, and keep up with your payment plan

Make sure you keep sending payments to routine or else you will kill any chances of redeeming yourself.  One missed payment can cost you dearly, so even if you don’t have a full installment, make half or at least quarter to make yourself look good.