Ask yourself? Is it worth refinancing my Auto Loan Payment

Posted by on April 15, 2020 @09:49:07 EDT

Have you taken out a car loan to pay for your vehicle? You may be able to refinance your loan to give you some financial breathing room. Depending on your situation, it may be in your best interest to consider refinancing your auto loan. Ask yourself these three questions:

  • Has my credit score improved from the first time I received my auto loan?
    • If so, it’s most likely that your interest rates reflect your credit score from the time of the loan. If so, you can refinance those loans at a more favourable interest rate.
  • Have interest rates dropped?
    • Interest rates are always fluctuating, although the rate you receive depends on numerous factors such as your credit score. If the loan you originally qualified for isn’t exactly what you had hoped for and was higher than what you could obtain today, it may be worth reaching out to your lender.
  • Would I like to increase my monthly cash flow?
    • Yes! By reducing your interest rate or prolonging the term of your payments, you’ll be able to achieve not only lower monthly cost payments but also increase your monthly cash on hand.

If you find yourself answering “yes” to all three questions above, refinancing your auto loan could help you save money in the long run by reducing your interest rate, lowering your monthly cost payments or enabling you to pay off your loan sooner, all while increasing your monthly cash flow. Talk to your lender today to see if you can qualify for a lower interest rate.

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