Car Loan Refinance Tips & Tricks
by Mashum Mollah Loans & Credit Published on: 18 October 2018 Last Updated on: 11 November 2024
It’s no secret that people love to save money. Sometimes businesses make it easy for you; like when you go to the supermarket to find your favorite brands are half off. But other times you need to put in a little extra work to find ways to save. Car loan refinancing is a perfect example.
While it takes a bit of research, refinancing your car loan can save you big bucks by reevaluating your existing loan and providing a new loan with a lower APR (annual percentage rate). Below are a few car loans refinance tips and tricks to make sure you get the best deal possible.
Investigate Your Credit Score :
The first step in your quest for refinancing begins with an inspection of your credit score. Luckily, you can run a free credit report once every 12 months from each of the three national credit reporting companies (Equifax, Experian, and TransUnion). This is a relatively simple process. All you need is:
- Your name
- Your address
- Your Social Security Number (SSN)
- And your date of birth
This information will be used to confirm your identity. If you notice any mistakes, be sure to clear these up before applying for auto refinancing. Otherwise, you could be paying more than you should.
Note that in many cases, your credit score directly affects your interest rates. So, if you have an especially low credit score (under 620), you might see your interest rates increase rather than decrease. This is why it helps to do your research before committing to a car loan.
Explore Your Options :
The next thing you’ll want to do is the shop for an auto loan lender. To begin, it helps to look for companies with a strong reputation. Look for lenders with high ratings on consumer review websites like TrustPilot.
Once you’ve established that the company is legitimate, make sure their offerings best fit your needs. Obviously, most folks are shopping around for a loan with a lower APR, but it’s helpful to explore everything offers by your chosen lender. For example, RoadLoans offers different options to refinance a car loan including traditional refinancing, cash-back auto refinancing, refinancing for folks with bad credit, and more. By shopping around, you can be sure to get the best refinancing for your vehicle.
Make It Easy on Yourself :
It can be tough to figure out the total cost and duration of your car loan alone. Make it easy on yourself by searching for an auto refinance calculator from a reputable service.
But that’s not the only way you can make things easier on yourself. While it may be tempting to try and pay off your car as quickly as possible, you also run the risk of living on too tight a budget. Be sure to give yourself a little financial breathing room, otherwise, you could fall behind on payments or be left underfunded during a personal emergency.
Stick with It :
The last piece of advice regarding car loan refinancing tips and tricks is to stick with it. By consistently making on-time payments, you can improve your credit. If, however, you begin missing payments or making late payments time and time again, your credit score will suffer. It may also be hard to negotiate with your current lender since they may view you as a high-risk loan.
If it helps, keep track of the amount you owe and watch as each payment you make decreases that total number. You should be able to tell how long it will take to pay off your loan. And once you finally do, celebrate and congratulate yourself. It’s a good feeling.
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