By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
The News GodThe News God
  • Politics
  • News
  • Business & Finance
  • Lifestyle & Health
  • Sports
  • Tech & Autos
  • Home and Garden
  • Other Categories
    • Travel
    • Education
    • Entertainment
    • Law
    • General
Reading: Why You Should Go For Car Loan Refinancing
Share
The News GodThe News God
  • Politics
  • News
  • Business & Finance
  • Lifestyle & Health
  • Sports
  • Tech & Autos
  • Home and Garden
  • Other Categories
Search
  • Politics
  • News
  • Business & Finance
  • Lifestyle & Health
  • Sports
  • Tech & Autos
  • Home and Garden
  • Other Categories
    • Travel
    • Education
    • Entertainment
    • Law
    • General
Follow US
  • Blog
  • Blog
  • Advertise
  • Advertise
The News God > Blog > Business & Finance > Why You Should Go For Car Loan Refinancing
Business & Finance

Why You Should Go For Car Loan Refinancing

Rose Tillerson
Rose Tillerson December 23, 2021
Updated 2021/12/23 at 8:47 PM
Share
4 Min Read
The Brief Guide That Makes Buying a Car Under a Business Name Simple
Closeup portrait, young cheerful, joyful, smiling, gorgeous woman holding up keys to her first new sports car. Customer satisfaction
SHARE

In most cases, refinancing your car means a new loan with lower rates, better terms, and perhaps even a better lender, which makes it worthwhile for many people. However, the key is to know when to refinance to benefit from a more favorable agreement.

As a matter of fact, various factors go into qualifying for a more sensible auto loan, thus ultimately determining the right time for you to refinance, which we will look at next.

Key Factors that Determine the Right Time to Finance Your Auto Loan

Your Credit Score Has Increased

If when you first bought your car, a low credit score caused you to only qualify for a high-interest rate loan, then once your payment history has improved, you may consider refinancing your car to get a better rate and save money over the lifetime of the loan when lenders see that you are no longer a credit risk.

Your Car is Worth More Than the Remaining Loan Balance

Time is of the essence when it comes to refinancing your car for an improved loan because most lenders will not work with you once your car reaches a certain maturity or has lost most of its value.

Therefore, if your car still has a fair amount of equity, then it may be a good time to refinance.

You’re Experiencing a Strain in Your Budget

If your budget has become strained since you first received your lending, then you may consider refinancing your car for lower monthly payments, provided ​your credit score has improved, which qualifies you for a lower interest rate.

You Now Qualify for an Auto Loan Without a Co-Signer

Depending on your financial situation when you first applied for your loan, your lender may have required you to have a co-signer to be approved.

However, if your credit history and credit score have improved since then, you can refinance your loan to remove your co-signer.

How Difficult is it to Refinance?

Though each lender has their own requirements for qualifying for their loans, many of them consider the mileage of your car when refinancing it to determine the rate.

The make and model of your car may also prevent you from qualifying for a loan with certain lenders, so be sure yours is not on their list of exclusions before you apply.

Some lenders also will not refinance your car if your original loan is with them, so be sure to check their guidelines.

To wrap up, there are various reasons to refinance a car loan; however, just be sure your qualifications have improved to truly benefit from it.

In the meantime, according to Lantern by SoFi, you should also “compare auto refinancing rates from top lenders…for great rates…and don’t let any lender run a hard credit check until you’ve determined that refinancing your car with the lender is right for you.” They also state that refinancing a loan with bad credit is also possible, provided you have a history of on-time payments with your current auto loan.

You Might Also Like

Why You Should Consider Becoming an LP

The Pros and Cons of Trade Matching Engines

How Your Business Should Design Online Forms

Top iBuyers in America

4 Helpful Tips On Starting A Family Business

Rose Tillerson December 23, 2021
Share this Article
Facebook TwitterEmail Print
Share
Previous Article The Best Racing Tracks Across Europe The Best Racing Tracks Across Europe
Next Article What Is Involved in a Dog Bite Lawsuit? Who Is Liable If You’ve Had a Dog Bite?

Stay Connected

235.3k Followers Like
69.1k Followers Follow
11.6k Followers Pin
56.4k Followers Follow
136k Subscribers Subscribe

Latest News

Todd Boehly praised for backing Thomas Tuchel in the transfer market.
Todd Boehly praised for backing Thomas Tuchel in the transfer market.
Sports June 29, 2022
Arsenal legend Ray Parlour reacts to Chelsea hijacking Arsenal move for Raphinha.
Arsenal legend Ray Parlour reacts to Chelsea hijacking Arsenal move for Raphinha.
Sports June 29, 2022
Mariana Martix Wiki, Bio, Net Worth, Boyfriend, Height, Weight, Age, Measurements
Mariana Martix Wiki, Bio, Net Worth, Boyfriend, Height, Weight, Age, Measurements
Entertainment June 29, 2022
Biden boosts US military deployments in Europe
News June 29, 2022

You Might also Like

How to Choose the Best Crypto Trading App
Business & Finance

Why You Should Consider Becoming an LP

June 29, 2022
The Pros and Cons of Trade Matching Engines
Business & Finance

The Pros and Cons of Trade Matching Engines

June 29, 2022
The easy customization feature of the Shopify app helps retailers in personalizing their stores according to their customer's requirements. Mainly Shopify applications are well-designed too and flawlessly integrate with the social media platforms that help in enhancing brand image. Merchants can easily set up the store with or without the help of any services.
Business & Finance

How Your Business Should Design Online Forms

June 28, 2022
Top iBuyers in America
Business & Finance

Top iBuyers in America

June 28, 2022

© 2022 Thenewsgod. All Rights Reserved.

  • About
  • Contact Us
  • Terms of Use & Privacy Policy
  • Advertise
  • Disclaimer

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?