Should I Refinance My Car Loan?

Owning a car can be expensive. Next to your rent or mortgage, your car payment can be one of your largest household expenses.

If saving money isn’t enough, there can be additional benefits to refinancing your auto loan. Here are five of the biggest ones.

Get a Better Interest Rate

Over the life of an average car loan, you can end up saving thousands of dollars in interest payments by lowering your interest rate by just a point or two. 

Lower Your Monthly Payment

One way to do that is by lowering your interest rate, which you should try to do first because that is free money. But another way is by extending the length of the loan.

Shorten Your Loan Term

 If you are able to make higher payments each month, you could end up saving a significant amount in interest.  

Add Additional Loan Policy Benefits

Depending on your current loan, you may be missing out on some benefits that can help protect you in the event of unforeseen circumstances.

Take Advantage of an Improved Credit Score

If your credit score has improved since you first applied for your auto loan, find out if you can refinance with a better interest rate or terms.

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