Refinancing Your Upside Down Car Loan

If you want to refinance your upside down car loan in order to lower your payment, you have several options. The simplest is to contact the lender that gave you the loan, and ask to speak with their loan officer, to discuss a refinance.

Contact Your Lender

Once you meet with the loan officer, they will have you fill out a loan application. They will review your credit rating, employment status, and debt-to-income ratio. Most lenders are willing to work with you, since you may default on their loan if you cannot make your monthly payments.

Check Online Lending Sources

Do a search online for lenders that offer car loans. Once you find one that appears reputable, scan their website to see if they refinance upside down car loans. Go through the application process, and you should receive an answer in a few days.

Additional Collateral

Many lenders accept additional collateral, in order to decrease their exposure on your upside down loan. This could be property, a vehicle you own that is paid for, or any other collateral that the lender tells you they can use. Make sure to ask your existing lender if additional collateral is a viable option. If it is, you will be able to refinance your loan.

 

 


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