Refinancing your car loan is an ideal way to lower your overall interest cost or reduce your monthly payments. If you get lucky, you can do both. By using an online multi-lender auto loan finance company like myAutoloan.com, you can be assured that you are finding the lowest rate. To be sure you are getting the best offer; follow these three tips before you refinance your vehicle.
1. Know Your Goal
Before you refinance your auto loan, decide what your goal is. Do you want a reduced interest payment or have a smaller monthly payment? With your goal in mind, you can choose terms that will best meet your needs. Want some ideas on rates and term? Check out our finance guide and play with our rate calculator to understand how rates can help you determine what your transportation goal is.
To find reduced interest payments, it is best to have improved your credit rating. One easy way to do this it to pay your credit cards down to 50% of their limit. You can also find lower interest rates by choosing a loan shorter than the typical five year period. Regardless of what you are looking for, it does not hurt your credit score to look and apply for an auto refinance loan. Remember, smart people shop and the credit bureaus score it as only 1 inquiry, within a two week period.
To reduce your monthly payments, look for a loan for a longer period. You don't even have to find lower interest rates to lower your monthly payment. However, you will be paying more in interest payments over the course of your loan. Just review your options and make a good choice for you, and know what you want to accomplish on the short term.
2. Go Online But be Prepared
To speed through the refinance process, gather all your financial information, for the auto you want to refinance, such as lender, monthly payments amounts, estimated payoff amount and current rate. It’s not critical that you have the VIN number or exact APR’s or amounts, but if that info is handy, have it ready and with you as you apply. If you don't know the current balance on your loan, you can call your current lender to get the exact amount. Having a copy of your last tax forms will also make filling out the forms for quotes or a loan application easy. myAutoloan.com can make the process of getting pre-approved very easy!
Compare Quotes - Get your Refinance Auto Loan
When you are ready to find an auto refinance loan, use a lending platform like myAutoloan.com to compare quotes before you pick a lender. Having up to 4 lenders pre-approving and providing you rate and terms to compare is fantastic! Try it and get quotes from national online lenders at myAutoloan.com – all you need to do is apply. What we do is match your application up with our lender base and electronically post lender approval information on our site. It is secure and completely private so that you are the only one that can see the information. Getting multiple offers is important to you so that you can have a choice and pick the offer that is best for you. Your Loan - Your Way.
Not a bad approach, right? You don't want to get locked into a deal that you can't pay early. While rates and terms are important to compare, you also be aware that there are no fees for applying or using us for your auto refinance loan. Select the rate that works for you and take it from there. After a small amount of paperwork, you can have your new lender pay off the old one and you are on your way to saving some money. Good luck and let us know if you have questions.