How to Avoid Car Refinance Scams

Purchasing a new car from the dealership leaves you open to dealership scams, but what about when you need to refinance your car loan? Many of the scams are the same as you will encounter when buying a car.

Here are the best tips for avoiding any of the refinance scams that dealerships force you through.

• Get your own credit score and bring it with you to the dealership.
• Don’t pay a cash deposit for your financing loan. If the deal goes bad, you can’t get your deposit back.
• Don’t apply for a car loan until you have been at the same job for at least 6 months.
• Apply for your loan online.
• Learn to fix your credit before you apply for a loan. Get your credit score to at least 680 first.
• Pay off your credit card debts before you look for a new car.
• If you have recently moved wait 6 months before applying for a loan. Your address is always verified. If you move a lot, they will not trust that they can keep track of your whereabouts should you make late payments etc.
• Having been approved for a loan in the past helps.
• Don’t get a co-signer for your loan because often times you will find that the deal is solely in the other person’s name. This will not help your credit score