Everything You Need to Know About Refinancing Your Car

One of the best ways to increase your cash flow each month (outside of earning more money) is refinancing your debt. Credit cards? Auto loans? They’re both fair game. This week--auto loans. If you’d like to save money by refinancing your car but aren't sure if it’s worth it or not, use this handy guide:

Now, let us explain:

Consider interest rates. Shop around local credit unions for the best interest rate and compare it to your current rate. Believe it or not, you can save a big chunk of change just by changing your interest rate. If the best rate is not any lower than your current rate, it might not be worth the effort of refinancing.

Has your credit score changed? We’re all in danger of falling victim to a financial hardship. If you’re several payments into your loan and have improved your credit score, refinancing may be able to help you get to a lower rate even if rates haven’t dropped dramatically.

Will it save you money each month? There are circumstances where refinancing to another financial institution (like from a bank to a credit union) is worth it on its own, but it might not be worth paying closing fees if you’re not saving money month-to-month.

Lastly, is your vehicle or loan eligible? Many financial institutions won’t refinance a vehicle that has a certain mileage or loan balance. The good news is that this information will likely be available on the financial institution’s website, so take a few minutes to check it out.

Are you interested in saving money by refinancing your car? We can help!