We know how overwhelming it can be to find the right auto loan company to refinance your loan. Fortunately, you have the finance gurus at Seek Capital here to help. We decided to lend a helping hand and share the best resources to refinance your auto loan. Whether your credit has improved, you’re having difficulty making your current payments, or for another reason, refinancing might be the best move for you. In this guide, we’re going to uncover the truth about auto loan refinancing so you can determine if it’s right for you. If you’re new to this concept, we’ll explain what auto loan refinancing is and how it can benefit you .
When you choose to refinance your auto loan, you are getting a new loan from an entirely new lender. The idea here is to get your current auto loan lowered to where it’s more affordable to you. What’s more, you can even choose to extend or shorten the time left on your loan or keep it just the way it is.
There are many reasons why you might want to refinance your car loan. Let’s take a moment to discuss these reasons so you’ll have a better idea as to whether or not you’re in a position to refinance.
If your credit wasn’t so hot when you initially bought your vehicle, you’re likely stuck paying a higher interest rate. Fortunately, if your credit has since improved, you might just qualify for a lower, more manageable interest rate.
This sometimes happens when car dealers decide to milk you for more money, thus charging you a higher rate than what is considered reasonable. You might have experienced this practice if you weren’t aware of your credit score prior to purchasing your car.
Conversely, you might be a fortunate candidate for falling interest rates. This can happen for a variety of reasons, such as trying to match a competitor’s rates. But what’s important is that you take advantage of it. By refinancing your current auto loan, you can pay off your loan a lot sooner, thereby saving you money on interest fees.
Life tends to throw a lot of unexpected curveballs. As such, you find that you are in a position where you are struggling to make your payments on time. In light of COVID-19, this is a problem that has plagued many people. Refinancing your loan may help to lower your monthly payments. But be warned; doing so will also mean that you’ll be paying more in interest rates. As frightening as this may sound to you, it’s ultimately better than missing payments and hurting your credit score. Or worse, your vehicle could be repossessed.
Now that you know a little more about how auto loan refinancing works, you’re probably wondering which companies are worth checking out. We have you covered! Instead of spending your valuable time scouring the internet, we tasked our resident auto loan experts to narrow down the top-rated companies for your consideration.
Minimum credit score : 580 | APR : between 2.45 and 17.99% (based on credit) RefiJet excels at helping its customers find the best loan options based on their financial needs. It’s important to note that RefiJet isn’t a lender. Instead, they operate amongst a network of financial institutions and lenders to ensure that you get the best loan possible. Auto Loan Refinancing When you choose RefiJet for your refinancing needs, you have a few options available to you. First of all, there is a traditional option that helps you refinance your auto loan. In doing so, you can lower your monthly payments to where it’s more affordable. Alternatively, you can use this option to lower your interest rate so that you aren’t paying more in the long run. Cash-Out Loan If you need a little extra cash in your pocket for bills or personal use, RefiJet also offers a cash-out option. With this, you can increase your loan and receive cash back. This is handy if you find yourself in a financial bind and need some easy money in your pocket. Lease Buyout Lastly, RefiJet offers a lease buyout option. If you are leasing a vehicle, lease buyout gives you the option to finance it so that you can eventually own it. It should be noted, however, that this option is contingent on the leasing company willing to let you purchase the car from them. Factors to Consider Before you jump on board with RefiJet, there are a few things that you will first want to consider. For starters, you can’t refinance a vehicle that’s more than 10 years old. Secondly, RefiJet is a free service; thus, you may use it free of charge. However, some lenders may charge their own fees, such as those from the state and the transferring of the vehicle’s title. Thirdly, if it is determined that your credit is insufficient to refinance your car loan, RefiJet does allow co-borrowers. This can serve to tip the scales in your favor and get you approved for a new loan.
Minimum credit score : 575 | APR : between 2.05 and 29.40% (based on credit) MyAutoLoan is a solid choice if you need help getting your current car loan down to a more manageable amount. Like RefiJet, you are matched with a series of lenders in an effort to find the best one for your needs. Easy Comparisons A nice feature about MyAutoLoan is that they let you view the offers all at once. This makes it much easier to compare rates as you search for the right lender to refinance your car loan. What’s more, MyAutoLoan works fast to get you your money. If you are approved for a loan, you could get your money within 24 hours in the form of a check. And once your check is in hand, simply take it to your car dealership to buy a car or refinance your loan. It’s a straightforward and hassle-free process, which is why we included MyAutoLoan. If you are borrowing money through MyAutoLoan, keep in mind that the least that you can borrow is $8,000. And if you are refinancing your loan, the amount drops to a minimum of $5,000. Other Factors to Consider You may only refinance vehicles that are under 10 years old. Additionally, the vehicle you are financing must have fewer than 125,000 miles. To qualify for MyAutoLoan’s services, your income has to be a certain amount. For example, if you are applying for a loan, you must bring in a minimum of $21,000 a year. And if you are applying to refinance your car loan, you have to make at least $18,000 a year. Some lenders require that you make a down payment on the vehicle you’re getting a loan for. So keep this in mind when comparing different lenders. And finally, MyAutoLoan won’t do business with you if you currently have an active bankruptcy.
Minimum credit score : 600 | APR : between 1.99 and 17.99% (based on credit) AutoPay is an excellent option if you have fair credit . You can compare rates among a variety of lenders to better determine which one is right for your needs. A soft credit check is performed to see if you prequalify for a new loan . If AutoPay finds that your credit isn’t sufficient, you have the option to use a co-borrower to see if that gets you approved. Services Offered AutoPay provides several services. Once approved, you may seek a loan for buying a vehicle, both new and used. Of course, you may opt to refinance your current auto loan, as well. There is also a lease buyout option if you’d like to own the vehicle you are currently leasing. However, please keep in mind that this option is only available if the leasing company agrees to let you purchase the car from them.
All of the auto loan refinancing companies that we featured here have a few things in common. First of all, if your credit is decent, you can look forward to benefiting from a lower APR. With that said, each company has a minimum credit score that they will accept. As such, you may have to choose another auto loan company that accommodates your credit. However, another great feature that each company shares is that they accept co-borrowers. So even if your credit score disqualifies you, having a co-borrower could give you the edge needed to get approved. You can expect soft credit checks to be performed from each company, as well. While this won’t affect your credit, a hard credit check will. Fortunately, these are only implemented during the final approval phase.
Refinancing your car loan could be the first step toward getting your finances in order. It pays to shop around, so be sure to research each company thoroughly to ensure that you’re getting the best deal possible. For more information on other types of loans and services, be sure to check out our resource center of articles and guides . Sources https://www.refijet.com/ https://www.myautoloan.com/ https://www.autopay.com/