We can provide finance for people who have had difficulties obtaining credit in the past,
if we can’t approve you, we don’t think anyone can!

Refinancing a car loan

What is refinancing?

To refinance a car means to replace your current car finance agreement with one of different (most likely, better) terms. The new loan, often with a new lender, could improve your finance plan terms by reducing monthly car repayments, lowering interest rate, and allowing you to remove or add someone to/from your policy and increase or decrease the loan term length.

How to refinance a car loan?

It’s easier to refinance a car loan than it was to first obtain your current car finance deal. All you have to do is fill out our quick and easy application form.

From there a member of our friendly team will give you a quick call to confirm your details. Now, unlike on your initial plan, you don’t need to come in, therefore this vastly speeds up you application process and you could get your new refinance deal within hours

Refinance Today

98% of application in 2016 were approved.

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When to refinance a car finance plan?

It can be difficult to decide if you should transfer your car loan and refinance. The first step to doing this is finding out when you can refinance your car.

You don’t have to wait, if you wanted you could refinance immediately. However, you increase your chances of getting a better refinance deal if you build up your credit score or wait for interest rates to drop.

Does refinancing hurt your credit rating?

When you apply to refinance your auto loan, it will trigger a lender to perform a hard inquiry on your credit report. When this is done it generally causes your credit score to drop by a few points, the effect of this will lessen after 2-3 months, but will remain on your credit report for two years. Multiple hard inquiries suggest to lenders that you are desperate for credit and there for have a significantly negative effect on your credit report rating. With this in mind we would recommend avoid applying for multiple loans at one time.

However, once your refinance application has been approved, your current lender will close the old loan and the new loan will then appear on your credit rating, effectively evening out your credit line.

Apart from multiple applications, as long as you make all your monthly payments on time, applying to refinance won’t affect your credit rating.

You can find out what is counted on your credit file here.

How many times can you refinance a car?

You can refinance your car loan as many times as a lender will approve your application. However, as stated above you want to avoid too many hard inquiries.

Refinance with bad credit

You may think having a bad credit rating, or even no credit score may harm your chances of getting an approval on a refinance plan. With Refused Car Finance that is not the case, we specialise in approving people who have been refused elsewhere. This is the same when it comes to refinancing a car with bad credit. As bad credit car finance specialists, your chances of being approved are greatly increased when applying for a refinance car loan through us.

If you have bad credit and are looking for some advice on improving your credit rating, check out our ‘Tips on Rebuilding Your Credit Score’ blog post.

Refinance Today

98% of applications in 2016 were approved.

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Approval Rating

Benefits of refinancing a car loan

 Reduce monthly payments
 Reduce interest rates
 Shorten / lengthen loan term
 Remove or add someone to your policy
 Improve relations with lender

 

Refinance Fees?

No fees

There are no fees to refinance your car loan here at Refused Car Finance. However, some lenders do have fees built into their own agreements.

Apply today to find out how much you could save.

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Registered with Information Commissioners Office ICO Registration Number: ZA132327

UK Car Finance Limited. Registered in England
Registered number 9397657.
Registered Office Lakeside House, 30 Northumbrian Way, Newcastle Upon Tyne, NE12 6EH

Refused Car Finance is a trading style of UK Car Finance Limited and is acting as a licensed credit broker and a lender, we are authorised and regulated by the Financial Conduct Authority, registration number 714966. All finance is subject to status and income. Applicants must be 18 or over, terms and conditions apply, guarantees and indemnities may be required.

Written quotations on request. Certain exclusions for NI residents.

Note: We cannot be held responsible for specification errors, and price errors, we use Motortrade software which is not always 100% accurate. Copyright 2017 Refused Car Finance.

Refused Car Finance can introduce you to a limited number of finance providers based on your credit rating and we may receive a commission for such introductions.

*Representative Example
Cash price – £8,500.00, Deposit – £0.00, Amount of credit – £8,500.00, Rate of interest – 16.24% per annum, Amount of interest – £6,912.00, Lender Documentation fee – £0.00, Lenders option to purchase fee – £10.00, Total charge for credit – £6922.00, First repayment – £256.70, Followed by 58 Monthly repayments of – £256.70, Final repayment – £266.70, Total amount payable – £15,412.00, Representative APR – 29.9%

*Last month, over 51% of Refused Car Finance customers that had their loan arranged were offered an APR of 29.9% or lower

In the first 3 months of this year, UK Car Finance Ltd received 2140 unique applications, of which we were able to offer 2136 applicants a line of credit, subject to the applicant being able to provide acceptable proof of affordability, being free from insolvency and or/a supporting guarantor fitting the lenders eligibility criteria, this represented 99.8% of applicants in this period.

Rated No.1 for car finance in the North East of England collated from Google Business Reviews