When to Consider Refinancing

When Should You Consider Refinancing Your Car Loan?

There are many reasons why you should look into refinancing your car loan. Doing this can save you money while exhausting minimal effort. Generally, people refinance because interest rates have dropped or their financial situation has drastically changed.

Refinancing Your Auto Loan

Refinancing into a car loan with a better interest rate may allow you to save money on your monthly car payment. Although everyone wants to save money, it is still imperative to make sure that the fees associated with refinancing are reasonable and that your interest rate is decreasing enough to offset them. It is also imperative to verify that the term hasn’t been increased to give you the illusion that you are saving money.

Verify Your Credit Worthiness Prior to Refinancing

It is very important to pull your credit score prior to considering refinancing your car loan. By taking this simple step you will know if it makes sense to go any further and it will also preclude the lender from unnecessarily pulling your credit. Most people don’t realize that pulling your credit on your own doesn’t affect your score but when it is pulled by third parties it can impact your score.

July 21, 2014