![]() ![]() However, there are a few more questions to ask yourself before you decide whether an auto refinance loan can be a good option: Certain situations such as your credit score increasing and federal interest rates decreasing can make refinancing a car a prime opportunity to make lower monthly payments on an auto loan. Determine If Auto Refinancing Is Right For YouĪs discussed in the above section, refinancing an auto loan is not the best option for everyone. We will break it down into six easy steps so you can understand the process and how to get the best deal when searching for an auto refinancing company. In this section, we will go into detail about how to refinance a car loan if it is right for you. ![]() They may require that a certain number of months are left, that the balance is above a certain amount, or that the car isn’t above a certain mileage. You should avoid refinancing if you have two years of payments or less to complete.Īuto refinance lenders can also have requirements in this area. So, at some point, you aren’t saving any money. Now, when is it too late to refinance an auto loan? Because of the way loans are structured, you pay more of the interest charge at the beginning than the end of the loan. You can find lower monthly payments and pay less over the life of the loan if you find a great rate in comparison to your existing auto loan. If you think you were given a bad deal by your current lender, you might try refinancing with another company to secure a better one. Your Current Auto Loan Doesn’t Have The Best Terms You are entitled to a free copy of your credit report at least once a year. If your credit score moves above 500, 600, 660, or 780, you may be eligible for a lower interest rate. The main factor that determines your auto loan interest rate is your credit score. You can monitor the federal interest rate on the Federal Reserve website. When the Federal Reserve lowers interest rates, banks may lower the rates they offer to customers. This would include your auto loan and any other open loans or credit lines. You can sometimes improve your credit score by consolidating your debt with one bank. You can refinance for a longer term to reduce monthly payments. If you can’t meet your monthly car payment either because you budgeted poorly when you took out your original loan or your financial situation has changed, you might look into refinancing your auto loan. While the timing of refinancing for any of our outlined reasons may depend on your personal situation we recommend making a decision when most of them apply to you. When is Best Time to Refinance a Car Loan?īelow we will give some guidelines on the best time to refinance a car loan. You may be required to pay down the balance to match the car’s value before you can refinance the auto loan. ![]() Lenders don’t like to refinance auto loans in this situation. Many lenders also require six to twelve months of on-time payments to qualify for refinancing.Īlso, you may owe more than the car is worth in the beginning because of depreciation. This gives you enough time to improve your credit score and actually find a better rate. The rule of thumb is to wait at least one year into your current loan before you refinance your auto loan. When you should refinance your car loan depends on your particular situation. On Trustpilot – where Auto Credit Express has a 4.5 out of 5.0-star rating from over 2,800 reviews – customers praise the company’s high level of customer service. This number represents a small fraction of the total business that Auto Credit Express conducts. The customer review score is very low at only 1 out of 5 stars based on just under 20 reviews. However, if your credit score is under 560, the company recommends you raise your credit score before applying for refinancing.Īuto Credit Express is accredited by the BBB, and it has an A+ rating. In addition to new and used car loans, the company matches borrowers with auto loan refinancing options.Īuto Credit Express specializes in loans for customers with poor credit and bankruptcies. This means that it partners with financial institutions to match customers with the best loans based on their needs and credit profile. #4 Auto Credit Express: Best Auto Refinance For Bad CreditĪuto Credit Express is a Michigan-based auto loan broker. ![]()
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