Common Questions and Answers
Everyone is always looking for a way to get a few extra bucks a month. A quick and easy way to do that may be to refinance your car loan!
What is a refinance?
To refinance a car loan you are essentially just getting a new and different loan on your car. If you refinance, you very likely can get a lower interest rate on your car loan, plus you can reset the term of the loan. By doing this, you likely can save $50.00 or more on your monthly payments! There are usually not any fees associated with getting the loan, although many banks and credit unions will require you to have an account with them, which may be required to have a minimum balance.
Who can refinance?
Pretty much anyone who wants to lower their monthly payments, or just get a lower interest rate, can find a way to refinance a car loan. Most companies that offer refinance loans will run a credit check, and based on that will either approve or deny your application. However, there are a lot of companies out there that will approve a car loan if you have little, no, or bad credit, so just make sure you shop around and see what options you have available to you.
Why should I refinance?
In the last few months, interest rates have dropped to record low levels. By choosing to refinance a car loan you can likely save yourself a good amount of money each month. Your new loan will very likely have a lower interest rate, and a longer term than your current loan, both of which will probably lower your monthly payments.
Where do I refinance?
Most financial institutions will have options to help you refinance a car loan, or if your loan is through a dealership they will likely be able to do it for you as well. No matter what company you choose to refinance with, you’ll need to go through the application process with them, which usually is very simple and fast. Make sure you check the interest rates at several companies before filling out any applications as they won’t all have the same interest rates or loan terms.
