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Can I cancel a car loan if I don't have money to pay for it?
I fell on rough financial times and now I don't have money for my car loan. Can I cancel it?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Sorry to hear about your financial hardships—I hope things will be looking up for you soon.
- Refinance the vehicle if you can afford lower payments
- Find someone to assume the loan if your lender allows it
- Surrender the vehicle to the lender and take the hit on your credit score
The former two are the best options as they won’t damage your credit. When you surrender your vehicle, it will show on your credit report as a defaulted loan. This can negatively impact your credit score for the next seven years.
If you decide to
refinance the car
, look at your car insurance to see if you can find some additional savings. The
Jerry
app helps you compare quotes from dozens of insurers to find the best rate on the coverage you need. You can use the savings towards your car loan.View full answer
- Gregory R.
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