OK, refinancing won't exactly rain money, but the monthly savings you get can feel like it, read on to find out how...

There are a number of ways to get a bad credit loan refinance which can help slash your monthly bills, and help you pay off what you owe faster. You can use refinancing to consolidate all your lending and eliminate your high interest debts. The monthly savings to your debt service can be dramatic. How you choose to restructure your balances will depend on your personal finances, choose the method that fits your needs best.

Bad Credit Refinance Car Loan Options

Remember, financing will vary in terms based on how bad your credit rating is. You can expect with lower scores you will pay a higher interest rate and face more rigorous application requirements because it is a higher risk for the lender.

Many people looking to refinance their auto loans initially purchased the vehicle using bad credit lending, and now that they have achived better credit they no longer want to pay the higher interest rates of their initial loan.

A bad credit auto refinance loan can also be used to borrow money against your cars value. If you have it paid off and hold title on the vehicle, you can use the car as security and improve your chances of getting financing approved, and getting you th money you need.

You will be asked to provide you income, employment stats and personal information as well as make and model of your vehicle when you apply. If you have outstanding balances on the care, you will need to provide the lien holder and amount owed.

You will be provided a quick quote online from the lender, you are under no obligation to proceed, if the terms are acceptable you can accept the new financing agreement.

 

 

Refinancing Using Debt Consolidation

If you are looking to refinance high interest credit card debt applying for a debt consolidation will reduce your costs. Check out our recommended debt consolidation loans that provide easy approvals for people and may be able to help cut your monthly bills by as much as 60%.

If you are not a good financial planner, don't fret this lending will simplify things for you. When you hold multiple balances, each will have its unique repayment dates, terms and conditions that you must follow as the borrower to remain in good standing.

Credit card consolidaton helps simplify the management of your debt by simplifying with a single low interest rate loan as well as reducing what you owe on your monthly bills.

Immediately after financing funds, you will be able to pay off your cards and keep more money in your pocket from month to month..

If you are having difficult time paying for your monthly bills, you can even extend your repayment terms to spread costs over a longer term to reduce costs, even if interest rates remain relatively close.

Once you get bad credit refinance savings you can focus your extra money to pay down your balance faster, reducing how much you pay towards interest. Easing the burden of your monthly bills helps you make timely payments each month which with time will improve your your credit rating.

Bad Credit Home Equity Loan

One of the best options to restructure your high cost balances is to use the equity in your house. Financing of this type is very inexpensive compared to other lending products, which translates to bigger savings. The more equity you have built in your home the greater the amount you will be able to borrow through home equity lending.

Your equity value is the total value of your house less the amount of your existing mortgage balance. It is advantageous to refinance any debts that are of a higher less favorable interest rate. Why pay more than you have to, when you can refinance & restructure to save.

Most lenders will approve applications with a FICO of 640 or higher, or will work with people who have a bad financial history if you have have significant equity in your house.

Bad Credit Refinance Mortgage Options

You can further reduce your monthly mortgage payment by refinancing into interest only financing. A word of caution: your principal amount will stay intact, equity will not accrue from month to month, in other words you make no headway towards paying off your loan. You pay only the interest on your outstanding mortgage, no priciple. You make no headway, but reduce your monthly burden.

This is a good option if you know you are under water but will be able to increase your income in time -- you can use the extra savings to pay down other balances which are crushing you.

Interest only financing will have a low bill payment for the first few years depending on how your loan is structured. The FTC offers a guide to consumer financing that is useful for reference. However, a balloon payment is commonly required after the interest only grace period expires.

This type of lending buys you time, but it can be dangerous so carefully understand the conditions of the loan you are signing.

 

Alternative Loan Refinancing Options

 

Banks

Bank lending is still a viable option to refinance even with low scores. While people think local banks do not approve borrowers with a poor financial past, it is not always the case and it is worth a try.

Banking institutions do have a more rigid qualification process compared with other financing options, but your a credit union can sometimes have specialized refinance programs available with flexibly qualification standards.

In most cases, a bank will not be your best option with a bad past, but it is the fist place we recommend you start looking.

FHA Bad Credit Refinance

The Federal Housing Authority has several programs to help people refinance and get back to a sound financial footing. If you are looking to refinance your home loan, FHA may be worth looking into as they are government incentivized to provide bad credit loans.

In addition, the federal backing allows for their providing attractive loan to value amounts and interest rates on lending. The maximum loan amount that you can get from FHA will be based on your debt to income ratio.

The minimum score required is typically 620, though presenting your case with lower scores can mean still being considered. You can opt for either a traditional first mortgage, a second mortgage or interest only loans.

Sub-Prime Lending

Sub-prime lenders are commonly available online and offline and provide easier refinance qualification standards with increased costs to finance.

The refinancing options these lenders offer can vary dramatically from, compare rate quotes from multiple sources or from your broker and make choose the best terms which will save you the most.

Generally you will be expected to provide collateral, cosignor guarantors, security deposits and other risk reduction options -- be sure to watch the financing costs, and avoid paying too much up front.

Hard Money Loans

Hard money lenders provide short-term, little to no qualifcation required lending options -- but at a considerable cost. They are typically used only as a solution when time is short and the money won't be needed for long and are not an ideal option for refinancing.

Because of the very short term borrowing periods they are sometimes referred to as bridge loans. It is usually very expensive and should not be considered for any long term financing because of the expensive origination fees and heavy interest rates. Hard money financing is an ideal candidate to refinance out of, rather than using them to do so, they tend to be so expensive you will want out as soon as possible.

Online Personal Lending

A powerful compromise is found using popular online financing to refinance, most especially long term lending options providing quick & easy approvals and extended repayment periods. We recommend a number of personal lenders in cases you need emergency money fast, and can typically provide long term interest rates far cheaper than revolving credit rates.

Borrowing from Friends and Family

Ultimately, family and friends are also a source for money to refinance bad debts for people lucky enough to have them. Though it may leave you feeling a little queazy to borrow from Aunt Gertrude or Uncle Billy, you typically will not get a better rates or lower borrowing costs than when you borrow from friends and family -- even better, your family is unlikely to care about your FICO for approval.

Just don't let them down, pay back what you borrow, and thank them graciously for the help when you get back on your feet.

So whether you are looking to refinance a vehicle loan with bad credit, reduce the costs of your mortgage, or want to wipe out your charge card balances. Know what you are paying, and if it can save you money, by all means start today!