If you have an Auto Loan with another financial institution, you may have thought about refinancing it to save some money. There are some things to consider before doing so.
To get started, monitor your credit score by checking it for free. This website gives you one free credit report annually. Then, use this rate to help estimate how much your monthly payment amount may be based on your remaining balance, and the new term with this calculator. See our current Auto Loan rates.
Some tips to get started:
- Auto refinance loan applications need to be in the same names (with exact spelling) as the names on your current auto loan.
- It is important to provide accurate information about your car like the year, model and the Vehicle Identification Number (VIN).
- Your auto loan refinance amount should not be higher than the value of your car. Get the value of your vehicle here. You’ll need the year, make, model of the vehicle, as well as current mileage and any extra features the vehicle may have (such as leather seats).
- Work towards improving your credit score by reducing the debt you owe and paying your bills on time. Having a credit card that is managed well (the payments are made on time, and the balance is below 30% of the account credit limit) will help increase your credit score. Family Trust offers Visa credit cards with a great rate and no annual fee!
- A previous car loan or home mortgage on your record can increase the chances of the loan approval. Keep in mind, those past loans must have been repaid as agreed. Remember, credit history is established over years of repayment. Don’t try to establish credit too quickly by opening multiple new accounts. Opening multiple new accounts in a short period of time or applying with multiple creditors can have a negative impact on credit score.
To apply for a refinance or to learn more about Auto Loans offered through Family Trust, check out our auto loan info. Stop by your local branch if you have any questions or give us a call at 803-367-4100.