When buying a new car most people finance through the car dealer. Why not? Many dealers offer great APRs, even 0%. But if you don’t have the best credit rating, you may not have ended up with that advertised interest rate on your loan. You may have ended up with an aging car, years left on your loan, and a very high monthly payment.
So, what can you do? You can refinance!
Yes, it is possible to refinance a new car loan and make your monthly payments more manageable.
First, check in with your local banks to find out what interest rate they might offer you on a refinance loan. Remember credit unions often have the best deals.
You can also use online tools. For example, Bankrate.com can help you calculate what rates you might be eligible for. Bankrate assumes you have a credit rating of 720 or higher, but other sites will do the same for you regardless of your credit score, and you can get refinancing if you have a credit rating of as low as 660. For any of these sites you will need to plug in certain information:
- Your current loan balance;
- Your present monthly payment;
- Your auto make, model year, and mileage;
- Your zip code; and
- Your credit score.
Note: You can obtain your credit rating (or score) online for free at sites like FreeCreditScore.com. When you get your report, it’s a good time to update information and correct information. Such editing can make a difference to you.
At sites like MoneyAisle.com you can find lists of finance institutions that will have viable options for you, at least 3 and up to 20. When you select one of these options, the offering institution will verify your credit score and be in touch with you to finalize your refinancing.
Don’t stay saddled with a big monthly car payment while you put on miles and cruise down the road to ruin. Take charge of steering yourself to a better loan payment.
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