How to Refinance Your Car
If you’re looking for a way to refinance your car, you’re in the right place. In this blog, we take you through the entire process and have all your questions answered to ensure you achieve a stress-free car payment process.
We’ve all heard about refinancing our mortgages. But are you aware that you can also refinance that hefty car loan? And the best part? It’s easier, faster and pretty straight-forward!
Right about now we are pretty sure you’re wondering – why you should refinance your car loan. We understand that it involves money and credit you’ve worked so hard to earn and that’s why it’s crucial you get all the information before you make the decision of getting started.
We’ve got plenty of reasons for you but let’s start with the most important ones:
- You can lower your interest rate: One of the most beneficial reasons to refinance car loan is you can lower your interest rate. This, in turn, helps you pay off that loan faster or save money throughout paying it off.
- Extend your car payment loan: Unexpected things in life always happen even if when you’ve got so much on your plate already, whether it’s a financial burden or urgent medical or electricity bills. In such a situation you need something that’s got your back. A refinance car loan helps you extend your time period so you can make those payments without too much to worry about. For instance, if your loan is to be paid off in two years, you can extend it to four years. It’s a win-win situation!
So how to refinance your car loan the right way?
There’s a process to everything, a refinance car loan included. We know it might look like a lot right now but keep reading to take steps that ensure you achieve the most fruitful outcome.
1. Verify your documents:
Your previous car loan payments are a huge step to look into when applying for a car loan refinancing. Check the following:
- Your present monthly payment and the pending balance.
- The loan term and conditions, for example, the time in which you need to repay the loan
- How much interest rate you’re paying at the moment.
- Also, verify if you have any penalties that are due.
- For any further details, ask your present lender, we’re sure they’ll be happy to help!
The payment contract will give you an insight as to where you stand and help you in making an informed decision.
2. Have a closer look at your credit score.
Have you paid your monthly car payments on time? If it’s a yes then most likely your credit score has improved. If you’ve failed to, this may be a cause for concern. Regardless of what your situation is, you can find a good deal with car payment helper to refinance your car loan.
Although it’s important to remember that checking your score won’t give you an accurate measure of the interest rate you’re likely to get on your new loan. In such a case, your best bet is to apply for a refinance car loan and help us determine how good or bad your credit score is which brings us to your next step.
3. Apply for the process:
The process of applying for a refinance car loan doesn’t cost a thing at Car payment helper, and you can quickly find if you can qualify for the lowest rate of interest for your payments.
4. Determine if refinancing is for you.
By now, you’ll be able to determine if refinancing makes sense for you. If you’re in luck, interest rates might have fallen since the last time you checked it. If that’s the case, you just won the lottery because there is no better time than now to apply for a refinance on your car loan. Why? Because you will receive even bigger savings!
In certain cases, there’s only a really tiny difference, so if you’re already more than halfway through your current loan, opting for a refinance car loan process might not be for you.
5. Assess your loan term:
As earlier stated, this is the time period in which you need to pay off your car loans. If you decide to go about refinancing, you can leave the terms the same or opt for the following changes:
- Shorten the length of time (Pay if off quickly); If you’re used to paying your loan with a certain amount and are more than comfortable with it, you can keep the amount the same and shorten the length of time you pay it in. This will help you save money because you’ll have to pay less interest over the period of the loan.
- Slowly paying it off: This is a desirable option if you’re on the financial breakdown wagon and want to lower your car loan payments. This could involve you extending for a few months or years depending on your situation. Although it isn’t the ideal thing to do as you’ll be paying more interest in the long run but it’s better than missing the payments and doing vigorous damage to your credit score.
6. Complete the application process:
If you find yourself agreeing to all the points above and think you’re ready to take the plunge, complete the application for a refinance car loan by contacting our car payment helper team. You’ll be sent the paperwork and you needn’t worry about a thing as they take you through every step very diligently.
Here’s what you’re bound to expect in a nutshell:
- New loan documents to sign
- The new loan will be created for you with a lower interest rate,
- A newer loan term (duration) you choose
- Your old loan will be paid off by the refinance car loan company
- And you’ll start your current loan payments to your new lender
We know the process seems like it could last for ages but trust us it can be completed in a few hours!
So what are you waiting for?
Get that better and lower payment today- It’s time to refinance your car loan!