How to Re-finance a car loan

I want to Re-Finance my bad credit car loan Calgary . This is a question that comes up all the time at bad credit car dealers , or everyone approved car dealers Calgary . In my opinion, I believe that once a bad credit car loan has been active for 16 payments, and all payments have been made on time, and up to date then, re-applying for a lower interest rate would make sense. On a lot of occasions a client will approach the question assuming that the bad credit car loan itself will re-build credit. In my opinion a client show attempt to have the bad credit car loan run alongside a secured visa. This will allow the credit bureau to show a car loan (I-Installment) and a secured Visa (R-Revolving), both at the same time. This will show strength when applying for future loans. The lender will now see the attempt has been made to successfully re-build the bad credit. It is important to know that the credit bureau will take an average of all trade lines. If a client has a bad credit car loan , or a bad credit car financing and only a bad credit car loan then this might not be enough, by itself, to re-build to the point a lender will offer a lower rate. This is why I suggest taking out a secured visa, like Home Trust Visa. This will show 2 different trade lines reporting. Anyways, back to why I feel 16 payments on a bad credit car loans Calgary is the right time to re-apply for lower rate. I believe that 16 payments is long enough to reflect 1 full year reporting to the bureau. As we might not know, the bureau collects data sent in from the lender, so if the lender is 1 or 2 months behind in reporting the active account, this will allow 16 payments to reflect on the bureau as 14 or 15, or even 13. This will allow the bad credit car loan to report 12 full months. It is important to attempt and clean up all collections on the credit bureau while re-building credit. Time by itself will not get rid of an unpaid collection.

-Just my 2 Cents

-M

Mark

Mark