 TITLE: Can I Get a Cash-Out Auto Refinance Loan With Bad Credit? CONTENT: What Are the Risks of a Cash-Out Auto Refinance?\n------------------------------------------------\nEven if you can qualify for a cash-out auto refinance loan, you may not want to go through with one. Be sure to understand both the benefits and the drawbacks of this option before you make a decision. Here are some potential risks that could make your situation worse:\n*   **It may increase your monthly payments.** Depending on how much you take out in cash and your new repayment term, a cash-out auto refinance could make your new loan more expensive. If you have the budget for it, that may not be a problem. But if you're already just barely scraping by, it could make it even more difficult to keep up with payments.\n*   **You may end up with negative equity.** If you borrow 100% of your car's value, or close to it, the vehicle may end up being worth less than what you owe if it depreciates faster than you can pay down the debt. In this situation, you'd end up with negative equity, which is when you owe more than your vehicle is worth. If you choose to sell the car or it gets totaled, you may end up having to pay the difference to the lender in cash.\n*   **You could lose your car.** If your new monthly payments are so unmanageable that you miss payments and ultimately default on the loan, the lender will typically repossess the vehicle and sell it at auction.\n*   **You likely have better borrowing options.** There are many alternatives to a cash-out auto refinance that pose less risk and could cost you less in interest. Before you decide on a cash-out auto refinance, be sure to explore other options such as personal loans and 0% APR credit cards. These may be challenging to qualify for if your credit score is low, but are worth a look. Another option: borrowing from a friend or family member. END