How you might approach a financial fork in the road*
Even if you’re not currently thinking about replacing your auto loan, “should I refinance my car?” could be a question worth asking yourself.
Put simply, paying off your existing loan and refinancing with another that might better fit your situation could possibly save you money. How? You may be able to find a lender offering a lower rate of interest, and lower monthly payments, than your current provider. What’s more, the whole process doesn’t have to be a time-consuming hassle.
Which direction should I take? Here are some tips and signposts for your decision-making route.
Some straightforward steps could help work out whether auto refinancing makes sense for you. Firstly, take a look at your existing car loan and, while you might already be familiar with the monthly payment figure, get reacquainted with details such as the interest rate, loan term and whether there are early termination fees.
If circumstances have changed since you took out the loan it could spell an opportunity to save money by refinancing. (NOTE: Read disclosure statements here.) For example, if your credit score has improved, and perhaps you’ve moved out of bad credit territory, you may find a lender will offer you a lower rate of interest.†
Even if your situation hasn’t changed, it might be possible to refinance your car with more favorable terms than your existing loan. An online search starting off with the likes of LendingTree and Bankrate could build a picture of what annual percentage rate (APR) lenders may offer you. An auto refinance calculator can be your friend in this process, helping you estimate what you might save when comparing your current loan to the terms of a refinanced loan. Online lender RoadLoans’ auto refinance calculator is an easy-to-use tool that sets things out clearly.
Having asked the question “Should I refinance my car?” and if refinancing your vehicle seems like the right direction, and once you feel comfortable with, consider RoadLoans. RoadLoans accepts applications from customers with all types of credit and its options include:
Traditional refinancing may allow approved applicants to skip a payment as well as possibly lowering monthly payments and APR.
Cash back refinancing could offer up to $5,000 back, depending on the value of your vehicle and credit requirements, which is money that could be spent as you choose.
Both are coupled with a dedication to high levels of customer service. Furthermore, the RoadLoans process is quick and convenient. It takes just minutes to apply online and you’ll get an instant decision.
* These statements are merely informational suggestions only and should not be construed as legal, accounting, or professional advice, nor are they intended as a substitute for legal or professional guidance.
RoadLoans is not a credit counseling service and makes no representations about the responsible use of or restoration of consumer credit.
† “Bad” or “Poor” credit generally is considered a FICO score around 600 and below by sources including the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press), Bankrate.com, Credit.com, Investopedia, NerdWallet.com and others. The Congressional Budget Office identifies a FICO score of 620 as the “cutoff” for prime loans. FICO scores are not the sole factor in lending decisions by RoadLoans.com and Santander Consumer USA.Written by: