The primary reason to refinance an auto is to lower the interest rate and decrease the monthly payment on the vehicle. Qualifying for a refinance is similar to qualifying for financing a vehicle, so the lender is going to check your credit, ask for employment information and evaluate the value of the vehicle.

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     Collect your credit report and score. One of the primary factors that determines your qualification for a refinance is your credit score. You can order your credit report and score from each of three credit agencies --- Experian, Equifax and TransUnion.

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     Obtain a payoff on your current auto loan. Call the current financing company for the vehicle and request the payoff amount. The payoff amount includes the total you owe, including interest, up to the date that the payoff amount is issued.

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Getting a car loan with bad credit can be just as tough as getting a mortgage loan with bad credit. However, just like any other loan, there are many things you can do to increase your chances of getting approved for bad credit auto loan financing. Even bankruptcy auto loans are possible. Here are a few tips to help you qualify for bad credit auto loans.

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     Know your credit score. Everyone is entitled to one free credit report online. Knowing your score before applying for a car loan is important. If your credit rating is too low, nothing can help you and you will just end up wasting everyone's time. If your credit score is below a 600, I would advise taking some time to boost your credit rating before applying for any auto loans with bad credit.

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Even though a variety of lenders exist, from low interest-rate manufacturer's financing to subprime lending, banks require the same information for approval. Contrary to public opinion, an excellent credit score is not always the answer for financing approval. While most banks want to see is that you have a decent income and have established time with your employer and at your address. Before applying for a pre-approval or loan, learn which information the banks require.

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     Determine the contact name and number at your job you'll use on your application so that the bank can verify your information about length of employment. In addition, you'll need to figure out your year-to-date income, which banks generally prefer over $22,000 per-year. Find your most recent paystub for proof of income (or two years worth of tax returns for the self-employed); the bank requires this information for the application.

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An individual retirement account (IRA) serves as a savings/investment plan established under IRS rules that confers tax benefits to help you save for retirement. With traditional, SIMPLE and SEP IRAs, your contributions are tax-deductible. Investment earnings do not get taxed while they remain in the IRA. When you withdraw money after age 59 1/2, it gets taxed as regular income. Roth IRAs don't offer a tax deduction for contributions. Instead, all of the money you withdraw after age 59 1/2 is tax-free.

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     You must meet the eligibility requirements to qualify for a particular type of IRA. For a traditional or Roth IRA, you must have earned income. You must also be less than 70 1/2 years old to open or contribute to a traditional IRA. Employer-provided retirement plans such as SIMPLE (Savings Incentive Match Plan for Employees) and SEP (Simplified Employee Pension) do have additional eligibility requirements.

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The Fair Isaac Corp. created the FICO score used by lenders. Your FICO score is compiled from data from the credit-reporting bureaus TransUnion and Equifax and is based upon your payment record, credit history and outstanding debts. Your use of credit cards is also monitored. Your FICO score ranges from 300 to 850. Scores above 700 are good, while scores below 600 are considered to present a risk to lenders. Your FICO score is used by most lenders to assess suitability for credit. It’s easy to obtain your FICO score, although it is not free.

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     Go online to obtain your FICO score used by lenders. The process is fast and simple, and you can view your score instantly. Go to the MyFICO.com website (see Resources). Click “Get FICO Score.” Check the boxes to get your score from TransUnion, Equifax or both. Individual scores are $15.95, or $30.90 for both, as of 2010.

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