How do I Refinance my Car?

Refinancing your loan is an easy way to lower your monthly payments to get a little extra money in your monthly budget and not change your lifestyle.

The process is much easier than when you first signed for your car loan. It is easy to apply online and many companies allow you to either sign for your loan online or print out the loan documents and sign them. Here are the terms. You still have to make copies of your important documents (paystub, phone bill, etc.), but this time you can do it all either online or through the mail. So the paperwork can be a little long, and getting copies of financial stuff can be annoying, but the money savings is usually worth it. Even if you just save $10 per month, that’s $120 a year and if you have 60 months to go, would be $600 total. For about two hours worth of work, that is not bad.

So that being said, you are still asking how I refinance my car loan. Well you will need to apply to a couple of banks or finance companies like RoadLoans. They will check your credit and usually approve you immediately. So usually you have to fill out an application for 5-10 minutes and then you will usually get an offer immediately. The only information you need ahead of time is the mileage on your vehicle and the VIN number off the front windshield. After you apply and receive your approval you will have to finish the paperwork. Some companies require you to get a notarized power of attorney for title issues with your vehicle. This is annoying but not insurmountable; you can go to any bank or postal office and get it done.

Some other important points about refinancing your car loan. While you are going through the paperwork and are getting all of your documents together you must remember to pay your current bill. This is critical because until your new company has paid off your current company you are still under contract and they can still report you as delinquent. Worse yet, your new refinance company can invalidate your application because you are delinquent on the current loan. So above all else, make sure that you pay your current bill until you get the welcome letter from your new refinance company. Do not worry about that payment getting lost, these companies are required by law to apply your payment to your new loan.

So in summary when you refinance your loan, you get to lower your payments, usually take a payment off in between and all you have to do is apply online and finish the paperwork. There really is not a drawback to this process other than you may get declined by some banking companies. Just don’t forget to pay your bill until you are done!