Tag Archives: car loan

Is Refinancing Your Car Worth It?

A human needs money continuously. Food expenses, gas for cars, electricity bills, academic fees, basic hygiene needs, etc., always require a good sum of money. So when it’s not worth saving up? Refinancing a car has one sole motive. It is to lower your monthly car payments as much as possible. The bonus point of refinancing is that it doesn’t only help you save cash every month, but it also allows you to save cash for a continuous period. Wondering if refinancing your car is worth it? This blog will help you find the right answer to your question.

How to Get My Car Refinanced?

Refinancing means replacing your original auto loan with a new loan while keeping the previous vehicle. The refinanced loan is likely to have a lowered interest rate, which helps you save a hefty sum of cash. For this purpose, you can either talk to your current lender or find a new lender.

Your new lender will pay off your previous auto loan on your behalf and start a new loan while replacing it. It will prove to be favorable in your regards.

There are three possible ways for refinancing a car loan:

Extending the loan to a longer-term.
Reducing the interest rate.
Both

Lowering the interest rate has proved to be the most profitable option where you can save a lot. On the other hand, if you try to extend your loan while keeping the same interest rate, you will have to pay interest charges for a lengthy period. It results in you expending more than the usual amount of money.

However, if you manage to lower your interest rate and extend your loan, then you will have to pre-calculate whether it will be beneficial for you or not. If you are only opting for refinancing because you want to lower your monthly payments, then extending the loan will work well. Be aware of the extra interest costs that you will have to pay throughout the added months. It may not be “worth it” when choosing this option of refinancing.

What Are the Requirements for Refinancing?

Refinancing requires you to do a lot of work. Firstly, you will have to search for a lender who is willing to cooperate with you. If you took out the original auto loan with a bad credit score, then be patient. Take your time to find a lender who can lower the interest rate for you so that you can save a good amount of money. Interest charges keep on piling over time when you are only capable enough for a two-digit interest rate.

Even if your credit score is struggling at the moment, you must look for a refinancing loan that offers a lower interest rate than the original auto loan. Lenders have set criteria for eligibility for refinancing. To get your car loan refinanced, you and your vehicle must qualify for some specific requirements.

Always remember, every lender has set varying criteria for eligibility. However, we have stated the basic stipulations that are a must:

Your vehicle is no older than 10 years old.
You have been paying your car loan for at least one year.
Your credit score is good, and it has been progressing day by day.
Your vehicle has a mileage of fewer than 100 000 miles.
You have a good loan payment history.
You have equity for your car.

If the answer to these requirements is a yes, go ahead with the refinancing process and start looking for a lender. Since every lender has a different collection of requirements, take your time to find the one that offers you the best and suitable deal.

If you are hesitating on how to start lender hunting, consider filling our free refinancing request form. We help you partner up with a reliable and well-informed agent.

What If I Don’t Meet the Requirements?

If you don’t fit in the requirements set for refinancing, switch to a cheaper vehicle. People aim for refinancing to lower monthly payments, but it comes with great stress. If you prefer keeping things simple and calm, try trading in your car for something else. It will be your best move ever.

Taking out an auto loan without a perfect score is quite impossible. But no worries! We at CarLoanRefinancing are here to sort out everything. We will help connect you with skilled dealerships throughout the nation.

When To Go for Auto Loan Refinancing?

Auto loan refinancing is a financing tool that can help you save your interest bills and reduce payments. Many borrowers go for refinancing to get a new term loan to help them qualify for lower monthly bills. Are you wondering what could be the perfect time to go for auto loan refinancing?

Following, we’ll see how it works and when you can apply for it.

What is Auto Loan Refinancing?

In the most basic terms, refinancing involves getting a whole new loan that replaces your current loan. Your new loan pays off your previous loan, and this new loan has several new terms, including term length and interest rate. Mostly, people refinance to get a low-interest rate and save on their monthly bills.

Many bad creditors who have a poor credit term go for refinancing. They level up the credit score that can help them qualify for a lower interest rate. For example, if you currently pay high-interest payments, you can improve your credit score by paying your bills on time.

If your track record is stellar and you succeed in making duly payments, your credit score will improve. As a result, you have a high chance of refinancing and ultimately qualifying for a low-interest rate.

What Is the Best Time for Refinancing?

You have a better chance of refinancing if you apply for it at least after one year of your loan term. The reason for this is that many lenders won’t approve lending if the timing of your loan is less than one year. Plus, you may not even apply for refinancing if you are nearing your term period, i.e., at the end of your loan.

This is because many borrowers have loan age restrictions which means there are timeline barriers during which you can’t apply for refinancing. Therefore, the best time for refinancing is at least after one year or before the last year of the loan term. Furthermore, the best time for refinancing also depends upon the age and mileage of your vehicle.

If you have a vehicle which is in operations for ten years, many lenders may not approve refinancing. Similarly, if the vehicle’s mileage is more than 100,000 miles, even then, many lenders are reluctant to approve your refinance loan. Therefore, be aware of these factors when you decide to refinance for your car loan.

What Are Some of The Refinancing Tips?

Some of the pro tips for refinancing that can help you secure your desired rates are as follows:

· Look for multiple lenders because they might offer you different rates. Go with the one who has the best terms.

· Do your research. Learn about your credit score and identify the market interest rates for borrowers who have a similar interest rate as yours.

· You need to investigate your criteria for refinancing. If you just extend your loan, it can cost you more as you’ll pay more interest. Plus, this can even leave you with negative equity.

Conclusion

In some cases, you may not qualify for refinancing. But don’t get disheartened; you can always go for a trade-in. Plus, there are bad credit borrowers and subprime lenders who have a different way of analyzing your credit profile. They usually assist bad credit borrowers who have a poor credit history and have gone through bankruptcy.

If you’re looking to refinance and find the best car financing options, CarLoanRefinancing can help you find suitable deals.

What Are the Benefits of Cash-Out Refinance?

Car, house, stable job – all these are elements that create an ordinary happy life for an average citizen. However, many people resort to car financing options to purchase their desired car. But car financing isn’t always bad. You can always avail yourself of the opportunity for cash-out refinance that can give you quick cash. Wondering what does cash-out refinance means? Let’s delve into the science and understand the important benefits of cash-out refinance.

What is a Cash-out Refinance?

If you have equity on your car, which means that you have paid a certain portion of your car loan, you can always cash out that equity. Starting off, refinancing means replacing your current auto loan with a completely new one. If you go for a cash-out refinance, you can get the equity portion of your loan as cash.

For example, suppose you bought a car for $10000 on auto financing. Till now, you have managed to pay at least $6000 on your car loan, which means you have 60% equity. If you go for a cash-out refinance, you’ll get a new loan and $6000 as cash-out. It’s a great way to get some quick cash that you may need for any emergency or any impending big purchase.

Besides this benefit of getting quick cash in hand, there is another benefit that makes cash-out refinancing popular. Since you’re refinancing, you can get a new loan with new terms. Therefore, it’s possible that the new loan you can qualify for has a lower interest rate, which can, in turn, lower your monthly bills.

Secondly, refinancing also allows you to extend your loan term. A great loan term will help you spread the payment over a long period, saving the monthly cost. However, interest payments tend to rise each month for a longer loan term. Still, you can get some cost savings, which can be essential if you’re currently having trouble keeping up with your bills.

What Are the Requirements For Cash-Out Refinance?

Once you decide to go for a cash-out refinance, you probably need to see a lender. You can go to a different lender that can give you new terms, or you can even get a good offer from your current lender. However, cash-out refinance fundamentally depends upon your equity car debt position. Still, there are other requirements at play which are as follows:

· You should have the loan for at least a year.

· Your car shouldn’t be driven for 100,000 miles or have ten years of age.

· You should have some equity to qualify for it.

· If your credit score improves, only then will you qualify for a lower interest rate.

However, not everyone can qualify for cash-outs. But if you’re fortunate enough to avail the opportunity, cash-out some quick cash that you can use for big things.

Is Cash-out Refinancing Preferable?

Sometimes, cash-out refinancing can work wonders, but it doesn’t mean it’s the best option. Many people cash-out to get some cash that they can put for a new vehicle and avail themselves of a trade-in. However, if you wait between the cash-out and trade-in time, there’s a danger of negative equity because you might not be able to cover the cost of your current loan.

If your vehicle is in good shape, you can get cash-outs. If it’s getting old, it’s time for cash-outs to trade in for a new vehicle.

Takeaway!

Cash-out refinances sure do have a lot of benefits that can work wonders for you. If you’re looking for a trade-in or a cash-out refinance, CarLoanReFinancing is where you need to go. Visit our website to explore our offerings.

How Often Can I Refinance My Loan?

If you require an answer about how many times you can refinance an auto loan, then we will be most delighted to tell you that there is no restriction prohibiting you from refinancing your car loan more than once; it is entirely doable. However, whether or not refinancing multiple times is a clever idea depends on how you do it. Furthermore, once you have refinanced, you may not be eligible to do it again.

How Can I Refinance an Auto Loan a Maximum Number of Times?

When you refinance your automobile, you replace an existing loan contract with a new one with changing terms. There’s no exact answer to how many times you can refinance an auto loan, but there’s undoubtedly nothing prohibiting you from refinancing your home many times. When you refinance, you must meet the lender’s standards. This implies that your car loan and vehicle, as well as your credit score, must meet specific minimal requirements.

Refinancing Should Be Reconsidered

Lowering your interest rate is the best approach to refinance. This saves you money on your vehicle loan, and consumers with better credit scores since the commencement of their loans may be eligible for lower interest rates.

If you’ve refinanced previously and are considering doing so again, you’re probably hoping to reduce your auto payment even more. Almost everyone who believes refinancing does so. However, simply extending your loan will not save you money in the long term. You’ll end up paying more for the debt in the end. The longer you have a car loan, the more interest you will pay.

If you keep on extending your auto loan to make fewer and smaller payments, you’ll be paying on the same automobile for years and may wind up with negative equity, meaning you will then owe more on the vehicle than it’s worth. If you’re in over your head and can’t afford your monthly payment, it would be a wiser option to sell the vehicle and trade it in for something more inexpensive rather than trying to refinance it several times.

Refinancing a Car Loan: Common Requirements

Lenders have requirements for refinancing, and vehicles may lose their capacity to qualify over time. The following are the most typical conditions for refinancing an automobile loan:

● Your credit score is good or has improved since you first took out the loan.

● The vehicle should be less than ten years old.

● The vehicle has fewer than 100,000 kilometers on it.

● The auto loan has been in place for at least a year.

● You’ve made all of your monthly payments on time.

● There can’t be any negative equity in a vehicle.

● There is no such thing as the type of loan that is too big or too tiny.

Not everyone can refinance all of the time, and your car may no longer qualify as time goes on. If refinancing does not seem like the best option for you, you may want to consider purchasing a new vehicle.

Final Verdict

Finding a lender who is not just willing to refinance your auto loan but is helpful too can be challenging, especially if you’ve done it previously. We’d want to assist you in finding additional resources and information about refinancing an auto loan.

Carloanrefinancing.com seems like the best option for you. Our dependable partner will hunt for a refinancing lender who can deal with your credit and vehicle. Fill out our car loan request form available free on our site so that you can connect with a dealer in your region who has the lending choices you need for your credit.

Now that you know the answer about how many times you can refinance your auto loan and the name of the dealer that can help you with it, then you better get started today!

Qualifying for Refinancing An Auto Loan

You may have heard from different people that refinancing your car loan is a terrific option to keep the automobile you want while still getting a better price on your loan. True, but qualifying for refinancing an auto loan is not as simple as this seems. There are many requirements that you, your vehicle, and your loan must meet.

The majority of borrowers prefer to refinance their auto loans to pay lower monthly interest. You can save hundreds or even thousands of dollars in total interest over the life of an auto loan if you refinance it to a cheaper interest rate.

Requirements for Refinancing an Auto Loan

1. Sort your documents

You must supply information about your current car loan and the vehicle to apply for a car loan refinance.

2. Must have a good credit score

Refinancing is usually for those with an excellent credit score. If you have a terrible credit score, you must improve it before considering qualifying for refinancing an auto loan.

If you intend to refinance, you must demonstrate that your financial status has improved. This translates to a higher credit score. A car loan is an excellent way to build your credit, and as long as you have been paying all of your payments on time and have not missed any other payments, you should not have any trouble demonstrating that your credit score is not in better condition.

3. Look for a Refi Lender.

You should apply for a car loan refinance with various banks and lenders, including your existing bank, online lenders, and other local, national, and credit union banks and credit unions. You can often take advantage of a bank’s offer by combining it with another bank’s offer to receive a better rate.

Is Your Car Eligible for Refinancing?

Not every car qualifies for refinancing. Most refinance lenders stipulate that your car is within a specific age and mileage range. These vary by lender, but most only refinance automobiles less than ten years old or have less than 100,000 miles on them. In addition, there must be equity in your vehicle.

Requirements for Existing Auto Loans before Refinancing

When you refinance your auto loan, you replace it with a new one with changing rates and terms. You can try to refinance with your present lender, but many consumers prefer to go with someone else.

Moreover, you must be current on your payments, and your old vehicle loan amount must fit within the new lender’s loan amounts. You will not be allowed to refinance if you have defaulted on your loan until you have paid off your past-due loan sum.

Why Should You Refinance Your Car Loan?

The primary motivation for borrowers to refinance is to reduce their monthly payments. You can achieve a lower automobile payment in two ways: by qualifying for a lower interest rate or extending the loan period. Both of these reduce your monthly payment, but only a reduced APR makes your car loan cheaper in the end.

Final Verdict

If you are thinking about qualifying for refinancing your auto loan, make sure you fit its requirements.

Refinance contracts are not available from all lenders, and it is not always simple to spot them in a crowd. We at Carloanrefinancing.com specialize in connecting customers with dealerships that can assist them, and we are excited to now provide even more refinancing options through our trusted partners.

Allow us to assist you if you have been having trouble getting a bargain. Fill out our quick, no-obligation vehicle loan request form right now to get started. We will begin to pair you with a dealer in your area as soon as you have completed the form.

Will Refinancing My Vehicle Hurt My Credit?

It is crystal clear that every time we take out a new line of credit, we will face a minor drop in our credit score. Since refinancing means drawing a new line, our credit is bound to go downhill even if we didn’t get a new vehicle.

So will refinancing my vehicle hurt my credit? Yes, it will. Here are some top ways how refinancing may affect your overall credit score.

How Will Refinancing My Vehicle Hurt My Credit?

Refinancing is the option that many opt to lower their monthly payment amount. You can do so by taking out a new car loan for the same vehicle. Refinancing proves to be efficient if you find a new loan with relatively lower interest rates.

By clearing the payment for the original loan, you close its account and open a new account for the refinanced loan. The refinancing process also requires a new credit, as the new lenders will ask for new credit reports. The refinancing procedure includes three steps:

Sending approval for new credit
Closing the previous loan account
Opening a new account

This procedure has impacted two different features of your overall FICO score. Be cautious! It can result in a meager drop in your credit score.

New credit 10%

The new credit portion is responsible for evaluating how many times you have applied for a new line of credit. When refinancing, the lender investigates your credit report, eventually resulting in a slight drop in the score. Your score drops from between five and twenty points, depending on your current credit score and history. The refinancing procedure also requests a hard inquiry on your credit, which can affect your credit score up to 12 months or even two years.

Length of credit history 10%

This category of the FICO credit score evaluates the length of your credit history and the ages of all of your previous credit lines. The older they are, the more beneficial it is for your credit score. When you close one account and start a new one to refinance, you reduce the age for all of your currently active credit lines. It will keep hurting your credit score until the account has matured enough.

So, this is how much refinancing your vehicle will hurt your credit. It is normal to see a sudden drop in your credit score right after refinancing. But many borrowers have reported that the credit score tends to return once you make consistent monthly payments for the refinanced car loan. Even if your credit score hurts from the refinancing process, it is not a big hassle since you will save a hefty sum of money through the refinanced loan.

Why Do People Choose to Refinance Their Vehicles?

Most borrowers intend to get a refinanced loan to save money from their monthly car payment amount. They do so by getting a loan with lower interest rates or switching to a longer-term refinanced loan. However, finding a loan with a low-interest rate is the authentic and best way to save a hefty amount of money. Because when extending the loan term, you will have to pay interest at the original rate, which can be even more costly than the original plan.

Borrowers who had bad credit when taking out the original car loan tend to look for refinancing because they have gradually improved their score through consistent monthly payments. Qualifying for a loan with a low-interest rate is the only key to saving up a lot of money from interest charges.

If you are dissatisfied with your original car loan, consider refinancing. And if your credit score has progressed since you last took out the loan, you may qualify for a refinanced loan.

How to Finance With Bad Credit?

Are you looking for lending resources while having bad credit? Then your search ends here. CarLoanRefinancing is the best and reliable platform to provide you with trustworthy lending resources. All credit goes to our widespread network of expert finance dealerships that help bad credit borrowers establish relations with suitable dealers that can help them with their bad credit.

To find out if you have a finance dealership around you, fill out our free auto loan request form.

If I Refinance My Car Loan Will I Lose My Warranty?

Are you wondering, “ If I refinance my car loan Will I lose my warranty”? Well, the answer to this question is not that simple. In most cases, when you have a manufacturer or an extended warranty, you don’t lose it. However, there are some solid exceptions. Let’s take a close look to understand the relation between your car warranty and refinancing.

A Deep-Down Analysis of Auto Warranties

Commonly-used warranties come with several default services that you can access through them.

When buying a new or a certified second-hand vehicle, you get a car warranty. It includes services like vehicle protection and repair coverage. Most car warranties have a starting point of three years or 35,000 miles. However, some may be short or long. Keep in mind that certified pre-owned cars don’t have as exclusive warranties as the new ones.

When financing a used vehicle, you can buy an extended warranty. It is more similar to an insurance plan as it covers the repairing costs etc. you can purchase such service contracts anytime you feel the need. However, at the time of purchase, many car dealers also offer such insurance plans.

How Does Refinancing Car Loan With a Warranty Look?

Refinancing means closing your current loan and starting a new one on the same vehicle. But the difference is that a refinanced auto loan comes with lowered interest rates. You can do so by contacting your lender or a refinancing company. Through refinancing, you have to pay discounted monthly car payments, which is a total win.

Refinancing also covers any extended warranty that you have activated through your loan. It is because refinancing covers your original auto loan. Your car warranty is not affected as long as your refinanced loan is providing coverage.

What Are the Refinancing Requirements?

Lenders offering auto loan refinancing have requirements that include having a good credit score and vehicle condition. Requirements vary from lender to lender, but here are some standard must-haves:

You must have an active auto loan
The vehicle should be worth almost equal to or more than the loan amount
The car must be in good condition, like acceptable age and mileage.
The car’s title must be clean
You and your loan must follow the term and conditions given by the lender

If you have an excellent credit score, you’ll get a good refinancing offer. However, if you have taken out your previous loan with bad credit and now you’ve improved the credit, then you’re also eligible for loan refinancing.

Remember that there is no gain in delaying your loan refinancing. If you waste time considering, you’ll end up paying a big sum of interest money, mostly when refinancing to a longer-term plan.

You should build up a solid payment history before choosing to refinance the auto loan. The reason is that you’ll be signing a long-term refinanced loan with a lower interest rate. Keep in mind that in case of bad credit refinancing, you’ll have to wait for one year to become re-eligible for signing a new contract.

Now let’s dig into, do I lose my car warranty if I refinance or not?

If I Refinance My Car Loan Will I Lose My Warranty?

The straightforward answer is no. Your service contract and car warranty will most likely survive the refinancing. However, look out for conditions on your warranty card before going for refinancing because some warranties have warnings such as warranty cancellation on refinancing, etc. It’s best to do a thorough rundown on the documents before making a final decision.

Here is a list of items that can nullify your car warranty instead of auto loan refinancing.

Title changes
Misuse of the vehicle
Odometer tampering
Improper vehicle care
Aftermarket alteration

So, if I refinance my car loan, will I lose my warranty? No, you don’t. Car warranty is not sensitive to refinancing, but it gets canceled when the vehicle is used improperly or illegally and when unlawful alterations are made.

When Can I Refinance My Car Loan?

There are instances where you can’t find the right deal for yourself. In times like these, there’s no need to hurry. Wait patiently for your ideal kind of deal to show up. You have plenty of time, so don’t rush things. When can I refinance my car loan? You can’t find a new lender as soon as you drive off the parking lot with your new car, right?

So, take everything at a steady pace. And let’s look into how early and late you can refinance your car.

A Guide to Refinancing Timeline

Refinancing is a means to lower the amount of money you’ll be paying for the monthly payments. It’s better and best to wait for a year before applying for auto refinancing, especially when you have taken out the loan on a bad credit score. This one-year gap allows your credit score to jump back to normal, giving you chances to qualify for refinancing. On the other hand, if you can’t find your ideal interest rate while your credit score is doing well, you will qualify for refinancing in six months only.

It’s clear that your refinancing solely does not depend on your credit score. But also on the ability of the lender you’re working with. If your path is clear, you can even get refinancing in two to three days only. But, you should at least wait for 60 to 90 days because it prevents problems with paperwork and title transfer.

Refinance and Save up Money Now

When you choose to refinance your car loan, you pick to close out your original auto loan and start a new one, probably with a new lender. The main objective of loan refinancing is to help you save money from the monthly payments by lowering the amounts. You can do so by refinancing your loan to a lower interest rate loan or a long-term one.

The combo of lower interest rates and long-term loan plans will help you put aside a hefty sum of money. Since your ultimate goal is to save money, try every possible means to qualify for a lower interest rate. Or else you will end up paying even more money than the original plan without realizing it.

Qualifications You Need to Refinance Your Car Loan

Qualifying for a low-interest rate refinanced loan can be difficult. To increase your chances of qualifying, you must strive to bring your credit score to the green zone, even if it takes you to work an extra mile.

There is no doubt that having a decent credit score is a fundamental requirement to get qualified. If you have succeeded in improving your credit score since taking out the auto loan, you are most likely to get the refinanced loan.

Other than credit score, you must fulfill requirements like:

Having a loan that fits the lender’s criterion
Having a good car mileage. Less than 100,000 miles would be perfect.
Paying your current loan

Refinance vs Trade-in. What Should I Choose?

The bitter truth is that refinancing doesn’t work out all the time. Sometimes, your car may not be eligible for qualifying, which can make the entire process fail. If you are looking for something to replace refinancing, consider trading in your vehicle. It is an affordable solution that has proved to be workable for many of us.

When choosing the trade-in option, you have the freedom to pick any equity in your car as a down payment. However, if you have negative equity, you have the option to roll it into your next auto loan plan. There are numerous benefits of following this easy and uncomplicated route. You will most probably get a good deal because used vehicles are so much in public demand. That’s why to act wise and fast while choosing the trade-in path.

If you think you are mentally and financially ready to start a new loan, we will gladly offer a helping hand. At CarLoanRefinancing, with our years of professional experience, we’ll connect you with reliable borrowers who will help fill your needs. Take out some time and visit our convenient and time-saving web portal to fill out the form.

Auto Loan Refinance: 5 Questions to Ask

Are you ever told by your friends and relatives that you should get a better auto loan offer? Auto loan Refinance doesn’t prove to be fruitful in every case. But for some individuals, it’s a jackpot.

The ticket to success in refinancing is to know the right timing and plan. People have solid reasons to seek auto loan refinancing. If your answer to any of these questions is yes, consider refinancing a car because there are chances that you could really hit the jackpot.

1. Is paying a lowered monthly payment your priority?

As reported by Experian, the average monthly payment for a used car in 2021 is around $430. That’s a hefty sum of money, especially when you barely have just enough money.

The primary benefit that refinancing offers is that you can pay off the loan in a longer time than the original plan. Each of your monthly payments becomes less through this option.

The drawback is that you’ll be paying monthly payments for a longer amount of time. It results in paying extra interest over the life of your auto loan.

2. Do you wish to lessen the life of your auto loan?

Doesn’t it sound great to save up money in your bank than send it to a lender? Absolutely, yes! The other highlighted reason why people prefer refinancing a loan is to reduce the interest rate.

It occurs by two means. You can refinance the auto loan for a shorter term, or you can find a refinanced loan with a lower interest rate. These two options will definitely save you a ton of money!

3. Did you purchase a bad deal from the car dealer?

Car shopping is not as easy as it seems. You are continuously bare to scams and high-pressure sales tactics, which leads you to sign a not-so-ideal loan plan. Car dealers tend to undervalue the car, which leads to a higher loan amount on it. Besides, dealers also mark up the interest rate and profit off the extra payment that you pay.

However, there is a way to escape from this plotting. You can apply for a better car refinance to get a better loan. If you choose to refinance through CarLoanRefinancing, we never plan on charging extra. So it is a hundred percent safe and secure option to get a loan refinancing!

4. Did your credit and financial conditions change?

If you are a quick learner, then like most credit holders, your credit score would have taken the road towards progress since you’ve learned how to manage credit score and history better. Your financial condition might have also improved if you’ve made growth in your career and earnings.

These are the perfect times when you should consider refinancing your auto loan. Even if you are still working to make your credit score better, you should look for loan refinance offers through CarLoanRefinancing. It is because we pay attention to other factors as well rather than credit score only. Keep an eye on the recent options, and apply right away when you find a suitable loan refinance plan.

5. Do you wish to take out a co-borrower from your loan?

Cars are an expensive asset, and most of the time, no one is financially well-off to own a car individually. For this reason, people tend to share a car (and loan as well) with another person or co-borrower. There’s another possibility that your credit score was not good enough to take out a loan, and you needed a cosigner on the auto loan.

If your financial circumstances have improved and you wish to remove the cosigner or co-borrower from the loan, you should refinance it. Keep in mind that if you plan to refinance an auto loan through CarLoanRefinancing, you’ll need to have permission from the cosigner/co-borrower.

How Does Refinancing a Car Loan Through CarLoanRefinancing Work?

Paying off auto loans seems like a heavy burden on the shoulder and the budget as well. The only hope that keeps us going is that we are not stuck with it for a lifetime. We refinance our auto loans and get to pay lower payments or interest rates or even both. Refinancing a car loan helps you save up a hefty sum of money in the long journey. To give a short example, loan borrowers save up to $912 per year by refinancing.

If you have never considered refinancing, you should. It is an uncomplicated process if done through CarLoanRefinancing. We hold years of experience in this field.

What Are the Steps to Refinance My Car Loan Through CarLoanRefinancing?

It doesn’t require any rocket knowledge in refinancing a car loan. Through CarLoanRefinancing, we have simplified refinancing even more by using the latest technology. We have award-winning customer support that helps you walk through the entire process step-by-step.

Step 1: Go through your rate.

Visit our online form and check out what rate we are offering. It takes less than five minutes and only basic information, such as:

Name
Birthdate
Home address
Education status
Income proof

We perform a soft inquiry on your credit, meaning this step doesn’t affect your credit score. We get most of the car information by car and the car loan information you’ve provided. If we can’t, we’ll require other details like car model, trim, and mileage.

Step 2: Review loan offers

If you pass the previous step, we’ll give you loan offers to review. This step helps you choose the right monthly payment amount, the length of the plan, and the interest rate.

The loan amount we’ll show will be higher than your original loan balance. It’s normal because your lender will refund the leftover money once the previous balance is $0.

Step 3: Submit your application form.

After selecting any plan you find suitable, you’ll need to provide additional information like your social security number and your insurance details. After this, we’ll instantly verify your application and redirect you to step number five.

Step 4: Submit any additional documents.

Sometimes, we also require additional documents like a driver’s license or a copy of your pay stub.

If we need any extra information, we’ll reach out to you right away. Your cooperation is a must through this time so keep checking your email to avoid any inconveniences in the application verification.

Step 5: Check and sign the final documents.

Once we’ve collected and verified the required documents, we’ll call you to check the loan terms & conditions and sign the permission form for a hard credit check. Most of the time, a hard credit check barely affects your credit score. According to FICO, the consequences of the hard inquiry would be marked off completely within two years.

After receiving your signature on the promissory note, we’ll go through the vehicle and insurance details once again. We’ll also check whether you’ve signed the documents to start working with CarLoanRefinancing or not.

Usually, we do these steps electronically, but due to varying laws and policies in different states, you also need to sign a physical copy. For this purpose, we’ll mail you the forms along with a prepaid envelope. Some states also demand a notarized form. For this purpose, we’ll provide detailed instructions that you have to follow.

Step 6: CarLoanRefinancing pays your old loan

After going through the official paperwork, we’ll deliver a check to your previous lender to clear your old auto loan. If we’ve overpaid the lender, he’ll have to refund it back to you.

Make sure to pay off your loan entirely until you see $0.

After we’ve cleared the old balance, the title transfer process will start. It may take up to 60 days to complete it. We may transfer the loan to your state’s Department of Motor Vehicles or under your name.

Step 7: Shift to paying your CarLoanRefinancing powered loan

After CarLoanRefinancing clears your previous loan balance, you’ll start to pay for your new loan monthly. You should pay the first payment within 30 days of initiating the new loan. We’ll plan the process in an organized way so that you don’t have to make payments for two loans in a month.

We’ll make things easy for you by presenting several easy payment methods.

Switching to automatic payment will lift off the burden of making manual payments monthly. We also offer a bi-monthly payment option. You can make such payments via autopay or manually and check your paychecks regularly.

All in all, CarLoanRefinancing has come up with an easy and convenient method for refinancing a car loan.