Avoiding Car Refinance Scams
Buying a new car from the dealership leaves you open to dealership scams, but what about when you need to refinance your car
loan?
Be aware that the same scams can be tried on you just as if you were buying a new
car. To refinance a car loan is putting with a dealer is putting you onto their 'turf'. Now their refinance expert can work you
over.
Here are some great tips for avoiding the refinance scams that
dealerships may try on you:
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Get your own credit report and bring it with you to the dealership.
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Never pay a cash deposit for your financing loan because if the deal goes bad, your
deposit is history.
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If you are a recent college graduate, don’t apply for a car loan until you have been
employed for at least 6 months
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Apply for your loan online so you can help avoid getting ripped off. This
is easier to do anyway because you aren't getting pressured by the dealership in person! Just don't look at one
site---check 2 or 3 to compare.
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Learn to fix your credit before you apply for a loan. Get your credit score to at
least 680 first.
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Pay off or pay down to a low balance your credit card debts before you look for a
new car.
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If you have recently moved, wait 6 months or more before applying for a loan.
If you move a lot, they will not trust that they can keep track of your whereabouts if you missed a payment or two.
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Of course, having been approved for a loan in the past helps. This will show
on your credit report.
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