Buying a car is a major financial decision.
That doesnt mean you have to be stuck with the loan you initially took out, though.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Go ahead and start now, but be sure to bookmark this post so you could easily return later.
Well keep it updated as offers changes or expire.
When Can You Refinance a Car Loan?
it’s possible for you to refinance your car loan at any point during the life of your loan.
Remember, you dont have to be stuck with your initial car loan if its not best serving you.
Refinancing with a lower interest rate is one way to reduce your monthly bill.
Another option is to refinance with a longer loan term.
Refinancing auto loans can speed up or slow down the time it takes to reach your loan payoff date.
You might want to extend the length of your loan if you should probably lower your monthly payment.
During times of rising interest rates, you likely wont be getting a better deal by refinancing.
Sure, there are exceptions to this rule.
But generally speaking, refinancing when interest rates are high wont save you money.
The ding on your credit is typically temporary.
Once you start making regular, on-time payments on your new auto loan, your credit score should rebound.
You tend to pay the bulk of the interest for the loan in the earlier years.
Also, car loans are harder to get for older cars and cars with high mileage.
You dont necessarily need a higher credit score than when you got your original loan.
Reach out to three or four lenders for quotes.
Some lenders may even be able to give you a quote without generating a hard credit inquiry.
ensure you carefully read the fine print and understand all the terms and conditions.
However, waiting at least six months is ideal.
You might see your credit score dip after refinancing your car, but its only temporary.
When lenders run a hard credit inquiry that tends to lower your credit score a few points.
However, once you start making regular, on-time payments, your credit score should improve.
Nicole Dow is a senior writer at The Penny Hoarder.
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