Refinancing your Car Loan with ProFed's Auto Loan Rate Refinancing
A car is a necessity for many, but also an expense few can afford in one lump sum. Most people have to take out a loan for a new or used car. If you are younger and have a short credit history, you may have missed out on a favorable rate with your auto loan. This means that you can potentially save money by refinancing your loan, typically with a new lender. Refinancing can get you a better rate or lower monthly payments.
Interested in refinancing? Check out ProFed’s auto loan rates and apply today, or read below to find out more about the process of refinancing your auto loan.
Why Refinance Your Auto Loan?
If your credit score has improved, you may consider refinancing your loan. Getting an auto loan with no credit or bad credit is possible, but you may find that you have to pay higher interest rates. Some financial institutions and dealers will consider your loan higher risk and charge you more in interest to make up for the higher chance of you defaulting.
You can also refinance to get a longer term with lower monthly payments. However, financial institutions tend to charge higher interest rates on older cars. This means that refinancing for a term change can sometimes result in a higher interest rate. Always check the rate you are being offered and consider the possibility that the total cost of the loan could go up.
How to Refinance Your Car Loan
The refinance process should feel familiar because it is the same process as applying for an auto loan. You can even shop around for the best auto loan refinancing rate and terms. Be sure to shop within a small window of time so it will have less of an impact on your score. Also, remember that some financial institutions do charge application fees on a refinance.
Some people refinance to get a shorter term because they can now afford higher payments. Try to get the shortest loan term you can afford in order to save the most money.
One way to get lower interest auto loan refinancing rates is to switch to a credit union. Check out our low rates and loan protection that doesn't break the bank. Contact us to find out how we can help you on your refinance journey.