- 1). Print a copy of your credit report for free at annualcreditreport.com. Review your credit report before refinancing a loan to determine if there are any errors on your credit report. If you find a discrepancy, such as a loan showing open that is paid in full, contact the credit agency, such as Expedia, Equifax or TransUnion. File a correction and have your credit cleaned up as much as possible.
- 2). Take the time to make payments on any loans you have on time for a few months. This shows you are creditworthy since most lenders will not even consider refinancing a loan that has late payments or is in default.
- 3). Contact a loan broker that offers loan refinancing. Brokers have access to more lenders than other banks or mortgage companies. Expect to pay a higher interest rate or a down payment to refinance your loan with low credit.
- 4). Visit a locally independent-owned bank. These banks process loans in-house and are able to extend credit and refinance loans for a borrower who currently has a low credit score but exhibits a strong employment history.
- 5). Complete a loan application and supply the required loan documents, such as pay stubs, income tax return statements, employment verification forms and sources of income. To refinance a loan the application will require a list of loans you have outstanding, the amount of the payments and balances due.
- 6). Sign the new loan documents after the refinance loan is approved and all of the paperwork is complete. The refinance loans pays off your original loan and replaces it with the new terms and conditions, such as interest rate, length of the loan and payment amount.
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