Solidifying A Better Future For My Kids

Solidifying A Better Future For My Kids

5 Reasons To Refinance Your Car Today

Jackie Watts

Refinancing your vehicle is an option anyone with an auto loan has. However, it shouldn't just be done at a random time. You should plan to refinance your vehicle at the right time so that it actually saves you some money. Here are five reasons to consider refinancing your vehicle today:

  1. It's Been Over a Year Since the Purchase: If you purchased the vehicle more than a year ago, then the chances of a lower interest rate are possible. This is because interest rates are ever changing and there is a chance that they can be lower than they were a year ago. On top of this, if you have been making your payments on time, then you likely have improved your credit, thus giving the bank a reason to give you a lower interest rate. 
  2. You Don't Plan on Selling Your Vehicle: If you don't plan on selling or trading in your vehicle anytime soon, then refinancing is a great way to ensure that you continue to save money. Refinancing may not be worth it if you are just going to get a new car loan in the near future.
  3. Your Credit Is Better: It's not worth refinancing your vehicle if your credit has actually gotten worse since you purchased the vehicle. Refinancing is only a good option if you have actually improved your credit, even if it's only slightly since this is likely to lead to a lower interest rate, which is the ultimate goal of refinancing. 
  4. Your Loan Qualifies: There is a chance that your loan may not qualify to be refinanced. But if it is, then don't hesitate to refinance, especially if you won't get the chance to do so in the near future because your loan will no longer qualify. A qualifying loan is a loan that is over $10,000. Most lenders will not refinance a loan that is less than that. 
  5. You Will Actually Save: When it comes to refinancing, you want to be sure that you are actually saving. There is a chance that the loan terms can change, such as the amount of time that you have to pay off the loan. However, this doesn't always mean that you are saving since you will likely be paying more in interest at this point. If that's the case, then it's best to pass and wait at least 6 months before attempting to refinance again.

When you know some of the reasons to get an auto loan refinanced, you can be sure that you do it at the right time for you and your current financial situation.


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About Me
Solidifying A Better Future For My Kids

One day a few years ago, I was forced to take a good, hard look at my finances. I realized that my husband and I were living outside of our means, and I knew that we needed to make some changes and fast. I started looking for ways to spend less money, and I was able to completely eliminate some of our largest expenses. It was a lot of work, but it really helped us to feel more free financially. This blog is here to help other people to spend a little smarter and to avoid the hassles that come along with spending more than you have.

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