How to Refinance All Terrain Vehicles

At a moment of tremendous economic crisis, some customers find themselves near default on loans. Even loans on recreational assets, such as all terrain vehicles, have caused stress on individual and family financial pictures. Before your ATV is repossessed or sold off, there are a few things you can do. If the original loan on the all terrain vehicle has an adjustable rate, you should take out a fixed-rate loan to pay off the original loan. Then, you can pay off the new, more predictable loan. Because an ATV is a luxury item, you probably need a credit score above 630 to refinance your ATV.

Instructions

1. Consult federal and state incentives to refinance. Since 2008, both levels of government have provided grants and tax relief to those who choose to refinance and keep their assets.

2. Check to make sure there are no mistakes on your credit report. Even a small blemish could hurt your bargaining ability with lenders.

3. Contact online lenders, lending banks and credit unions to find a competitive rate among them. Good places to start would be eLoan and Online Lenders Alliance. Before signing any loan, make sure the institution has not been reported for fraud to the Better Business Bureau or the Securities and Exchange Committee. Remember that sometimes there are advantages to refinancing with the original bank, too.

4. Close lines of credit and meet small debts. This will improve your credit score, which will afford you some leverage when negotiating with lenders.

5. Select a lender and pay off the adjustable-rate loan.

6. Meet the new loan, by sending in payments at least five business days before they are due.

References

• Lending Tree