If you financed wheels when rates were higher, refinancing could provide major savings. This guide shares three tips for refinancing your car loan online to lock-in lower payments.
Assess Your Financial Big Picture
Before applying, examine factors influencing approval odds:
• Credit score – Scores below 620 face challenges qualifying
• Owed loan balance – Keep loan-to-value below 120%
• Payment history – On-time payments help your case
Also calculate potential savings based on new rate using an auto loan refi calculator. Only apply if the math justifies.
Research Lenders and Compare Offers
Casting a wide net helps guarantee you discover your lowest rates. Compare these key elements:
• Interest rates – Even small rate drops can save hundreds
• Fees – No or low charges preferred
• Customer service – Identify responsive loan partners
Ideally find offers saving over 2% interest or $10+ per month to justify undertaking refinancing paperwork.
Polish Your Application
Submitting a polished application sets you up for swift approval. Do your due diligence by having these items ready for lenders:
• Proof of income – Recent pay stubs or tax returns
• Minimum down payment – Shows commitment
• Title with lien release – Indicates payoff ability
Ask providers what documents their underwriters require so you can front-load a thorough completed application upfront.
Answers to Common Questions:
What credit score is needed to refinance an auto loan?
The threshold varies but many lenders require at least 620 FICO based on lower risk. Check guidelines.
How soon can I refinance my auto loan?
Most lenders mandate you wait until having made 12 months of consecutive on-time payments before qualifying.
Does refinancing an auto loan extend its length?
It can if your goal is lowering payments. But research “no cash out” options preserving original repayment timeline.
By following these tips and insights for refinancing online, you can slash interest costs and achieve significant savings over remaining loan duration.