Most of us have heard of mortgage refinancing, but oftentimes, I come across people who don’t realize that they can refinance their auto loans as well. Refinancing your auto loan could get you a lower interest rate or allow you to remove a cosigner from your loan, especially if your credit score has recently improved. The good news is, this process is usually much simpler than refinancing a home loan. It’s simple and quick, and could save you big bucks!
The first step to determining if refinancing is a smart move for you is to check your credit score. In order to qualify for the best interest rates, you’ll need a good score. A score over 660 is a great start, but shoot for a score above 740 if you want the very best rates. If you want to review your credit report, you can do so for free every 12 months at AnnualCreditReport.com. You’ll want to look it over to make sure there are no errors before applying for any type of loan.
If rates have dropped since you bought your car, or your credit situation has improved, don’t be afraid to look into refinancing! It could be a smart money move that saves you money. As always, you can call on Coosa Valley Credit Union to help you through the process. We can even help determine if refinancing makes sense for you. With a recent rate drop, chances are, it will!