• Finding the Lowest Refinance Car Loan Rate

    A good refinance car loan rate can greatly lower the amount you end up paying for your car. Over the course of an auto loan, that can amount to hundreds, even thousands of dollars. The difficulty of finding a good refinance car loan rate can mean that most people never manage the savings they ought to have.

    Step One – Credit Score

    Your credit score will affect the kind of refinance car loan rate you’ll be able to find. That means you need to learn your credit score before you try to apply to refinance your loan. This is easy to do. All you need to do is apply to one of the credit reporting agencies and request the report. It’s something you should check every year, anyway. Applying for your credit score won’t affect your score at all. Knowing the score will let you understand what kind of loan you should be able to obtain.

    Step Two – Reasons for Refinancing

    Refinancing at a lower interest rate not only saves you money, it can also help you pay off your loan more quickly. The refinanced loan pays off the old loan and you end up owing less than would have been the case otherwise.

    Step Three – What You Need

    You need to be sure that the application on the application for a refinance car loan rate is in exactly the same name as the original loan. Without that, the potential lender won’t be able to trace the first loan. Also have the correct number of the loan. Give all the information on the vehicle, including VIN number.

    The amount of the refinance car loan rate should be no lower than $7,500 in order for it to be worth the time of the finance company. At the same time, the loan amount requested cannot be more than the value of the car.

    Step Four – Know what the Loan involves

    It’s important to know the details of any potential loan. Be aware of any loan fees that might be involved and any early payoff penalty. If these figures are excessive, they can greatly lower any benefits from obtaining a good refinance car loan rate.

    Step Five – Looking for a Loan

    When looking for a favorable refinance car loan rate, start by joining a credit union. As they operate on different criteria to commercial banks, they can offer lower auto loan rates of refinances. You will need to join the credit union before applying for a loan. Check different credit unions to see which offers the most preferential rate.

    If the financing for the vehicle isn’t through your bank, talk to them. In many instances, the interest rate on refinancing through your own bank will be lower than going through the finance arm of an auto manufacturer or the financing arranged by a car dealer. You can find lower interest rates by looking at ads in the newspapers. The better your credit score, the greater the chance of you finding an advantageous interest rate when you try to refinance your auto loan.