Most people don't realize that you have options when you are not able to pay on your car loan. You may think that you are going to have a repossession on your credit, but if you can take these steps to avoid it with a refinance or trade-in, you may be able to save your credit score and car loan history.

For one, refinancing only works if you are able to find a lender who will lower the interest rate and possibly extend the loan term. This is typically how you are able to keep a car with a lower car note each month. However, most companies don't really offer the best refinance terms because you end up paying more than the car is valued at.

You can trade in a vehicle if you have a lot of equity built from the original car and want to get into a vehicle that is cheaper. This still depends on your credit, but it does allow you to have a better loan payment each month. You can stop by State Park Motors Inc. to see more trade-in options.



Categories: Finance