When your credit score has improved, it's always a good time to refinance your existing loan. However, there may be some other times where you could benefit from refinancing as well.
When you choose to refinance your loan, you're asking the lender to basically review your current agreement. If they see positives, they may be able to adjust the loan so it works more favorably for you. What are some of those positives? Auto Credit Express would like to tell you!
Things that Help Refinanced Auto Loans
Typically, if you've made your monthly payments on time, you should see your credit score continue to improve. A higher credit score will mean lower interest rates if you refinance. However, besides refinancing an auto loan because you improved your credit, there are other ways to help lower your monthly bill when refinancing.
- Down Payment
When you refinance, you're creating a new agreement between you and the lender. You can still offer a down payment. Even a low amount like $500 can help lower your monthly bill.
Adding someone with a strong credit rating as a co-signer to your lease will help reassure the lenders that you will have a way to pay your loan back. Keep in mind that this is a big responsibility for whomever you ask, and you shouldn't ask just anyone. A family member with a good credit score is going to be a better choice than your friend with questionable credit.
- Extended Loan Term
Deciding to change your loan term from 36 to 48 months can help you reduce your monthly payments by refinancing if you're struggling, at the trade off for paying the loan off a longer term. Being proactive about your loan situation could mean the difference between making payments, or missing them and hurting your credit.
There's no denying that the struggling economy can make it difficult to keep up with all your bills sometimes. However, when you choose to work with the lender to lower you payments you'll gain their trust and encourage them to find reasonable ways to lower your bills.
As We See It
At Auto Credit Express we work hard to find the best dealer in your local area that can offer you the lowest possible rates to start with. However, sometimes even those rates are higher than we would like them to be.
That's why we work with dealers who are happy to find positive ways to refinance your loan when the time comes. Find out which dealers in your area can help you with refinancing your auto loan by completing our quick application today!