If you’re unable to make your car payments and don’t wish to refinance or modify your loan, you may be wondering how to transfer a car loan. Some lenders allow it, although there are requirements the person taking over the loan for you will need to meet. Some lenders don’t allow it at all, so you’ll need to check before moving forward. If you’re wondering how to complete a car loan transfer, read on to learn more from Green Light Auto Credit.
Before you can transfer your auto loan, you’ll need to find someone near St. Charles who meets the following criteria:
Excellent Credit Score: Chances are the lender will ask you to find someone who has a credit score of 719 or higher.
High Net Income: Naturally, the lender will favor someone with good income. If you can find someone with a net income of $3,000, as well as an excellent credit score, it’s likely you’ll be able to complete a car loan transfer.
Stable Job History: It’s a major plus if the proposed buyer has been at their job for at least six months. This shows commitment and responsibility.
Stable Current Residence: People who consistently default on loans and credit cards don’t tend to stay in one place for too long. Lenders try to reduce default by only lending to borrowers who’ve lived at their current residence for a year or more.
What are the Alternatives to Transferring My Car Loan?
Can’t think of anyone close to you who meets the above requirements? You have a few alternatives to transferring your loan:
Ask for a Loan Modification: You may be able to request a change to the repayment period. When you extend your loan term, the monthly payments will become lower, but you can expect to pay more in interest over the course of the loan.
Take Out a Credit Union Loan: Do you owe less than $10,000? You may be able to get a credit union loan — and for a reasonable rate. Credit unions typically offer agreeable interest rates and loan terms. Plus, after you pay off your car loan, you’ll become the legal owner of the vehicle.
Apply for Refinancing: Refinancing is essentially moving your current loan to a new creditor, possibly for more manageable monthly payments, lower interest rates, and/or a more agreeable repayment period. The new creditor will repay the old debt, and you’ll continue paying what you owe under the new terms.
Get Great Financing Terms Through Green Light Auto Credit!
In short, it’s likely that you can transfer your car loan to another person, but the process is arduous and may not be feasible. Green Light Auto Credit can help you get workable terms from the start, as well as help you find the car you truly want. If you have more questions, such as, “How do I finance with no credit,” or “How does cosigning work,” contact us at Green Light Credit near St. Louis and Florissant.