The answer to whether or not you can refinance an auto loan with the same bank depends. While it is only sometimes possible, you should always check with your current lender first if you’re considering refinancing.
Refinancing with Your Lender
Refinancing is simply the process of replacing an existing loan with a new one that has a different rate and/or term. Your current lender is a great place to start when you need to refinance your car loan. If you’ve kept up with your payments and are in good standing, they may consider refinancing your current loan.
However, your lender isn’t always in the position to do so. In these cases, you likely have other options you can turn to – especially if your credit has improved since you originally took out your auto loan, or interest rates have dropped.
If you can’t stick with your original lender, a good place to start looking for refinancing is with a credit union. If you’re worried about low credit standing in the way, you can sometimes get around that, especially if you’re a member in good standing. Credit unions are typically easier to get approved with than a bank.
Another thing to consider is why you want to refinance. It can be a good option to consider if you want to keep the vehicle you have, and:
- The prime interest rate has dropped
- You want to reduce your monthly payment by extending the loan term
- You didn’t get the lowest interest rate you now qualify for
If these scenarios don’t line up with why you want to refinance, you may have more things to consider before changing your car loan.
Instead of Refinancing
If you just want to get your car loan paid off faster, you can simply pay more whenever you can to accomplish that goal, such as making bi-weekly half payments. If you’re not especially attached to your vehicle and are looking for a loan with better terms, why not consider trading it in or selling it and taking out a new loan?
If those options sound good to you, but you don’t know where to turn due to bad credit, Auto Credit Express wants to help. We work with a coast-to-coast network of special finance dealerships that have the lending resources to help people get auto financing. Just fill out our fast and free auto loan request form and we’ll get started finding you a local dealer today!