Knowing is you should refinance your car loan — is a personal decision based on several factors. And like many things in life, timing is everything
First, let’s take a look at what refinancing means
It’s a process that allows you to pay off your current loan with a new loan that features more attractive interest rates or payment terms. This is where proper timing comes in — when interest rates are high, it’s an option that just doesn’t make sense.
Refinancing does make sense when rates are low, when you need to extend the duration of your loan term or if your credit score has recently risen. It becomes a tool that instantly helps you reduce monthly expenses.
A lower interest rate, for example, can make a significant difference on the amount of your monthly payment and over the life of your loan. When you refinance to a lower rate, or for a longer term, it creates flexibility for you and your family. It allows you to reevaluate your financial behavior as it relates to budgeting, spending, and saving money.
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That’s because refinancing creates lower payments. Lower payments create cash flow. And cash flow creates lots of options. It means you can redirect those funds to monthly bills, unexpected repairs, or credit-card debt. It also means you can start making extra payments on your loan to pay it down faster and save even more interest. Or you can use that extra cash to chip away at an unforeseen expense or hardship.
That’s because refinancing creates lower payments. Lower payments create cash flow. And cash flow creates lots of options.
Finally, refinancing allows you to bolster your credit history. RateWorks, for example, works with drivers from across the credit spectrum. There is no hard pull on your credit report and no personal information required to take the next steps. That means — even for individuals with bad or challenged credit — refinancing enables you to get back on track. In virtually all cases, RateWorks can help.
In fact, refinancing an auto loan with RateWorks has saved drivers an average of $110 per month, or more than $1,200 per year. We offer a fast and easy way to refinance your current auto loan. In a matter of seconds, we can determine if you are paying too much for your loan. In a matter of minutes, we can present you with a better rate at better terms. Plus, you won’t be penalized for repaying your existing loan.
Refinancing a troublesome auto loan offers the potential to lessen debt and increase financial flexibility. But always compare the advantages and disadvantages before making any important financial decision. And if you do decide refinancing your loan is right for you, be sure to choose a fee-free lender that makes the application process easy, transparent and trustworthy. To start your FREE quote with us, click HERE.
If you still have your doubts about refinancing your car, lets help debunk some of the misconceptions you may have heard or come across during your research. Or give our refinancing specialists a call at 855-925-1647.