Depending on the terms of the original car loan, auto refinancing may help debtors to reduce monthly car payments and save money.
The debtor has two options when it comes to car refinancing: find a new lender or refinance with the current lender at a lower interest rate. Numerous websites provide refinancing services and competitive refinancing quotes.
Auto Refinancing: Minimum Requirements
Car refinancing may not be for everyone. To qualify for refinancing, debtors must be a U.S. citizen at least 18 years of age. Minimum monthly income must exceed $2,000, and the car’s odometer must be under 70,000 miles.
While this is a general list of minimum requirements for refinancing, some lenders have varying requirements, for example, the age of the car measured in years rather than in miles.
Auto Refinancing: E-Loan
E-Loan is an online financial services company that specializes in providing banking services, home equity lines of credit, loans, and mortgages. E-Loan also offers car refinancing.
From the E-Loan home page, click Start Now in the Auto Loans box. Select Auto Loan. In the Select Loan Type drop-down list, select Refinance. Click the Estimate Credit drop-down list and select the debtor’s corresponding state of credit.
Click Start Now to be redirected LendingTree.com. When completing the Auto Loan Request form, select Refinance Vehicle from the What type of loan do you want? drop-down list.
Auto Refinancing: Credit.com
Credit.com provides financial information and services including credit reports, loans, credit cards, and debt help.
To find car refinancing using Credit.com, from the top menu select Loans > Auto Loans. Under the Car Loans heading, click Auto Refinance. On the left-hand side of the page, note the requirements for refinancing:
- Refinance loan amount: $7,500-$75,000
- Refinance repayment term: 1-6 years
- Maximum car mileage: 80,000K
- Car age: 2003 or newer
- Credit requirement: above 600 FICO
- Minimum gross monthly income: $2,000
- No bankruptcy, judgments/liens, or repossessions in past 3 years
When the refinancing form is completed, click Get My Free Quote at the bottom of the form to be contacted by a finance specialist.
Auto Refinancing: Bankrate.com
Like Credit.com, Bankrate.com offers car refinance comparisons among a number of lenders.
From the top row of tabs, click Auto. Under Auto Refinance, click the Select an auto refinance rate drop-down list and select 36, 48, or 60-month auto refinance. Click Go to choose state and to begin the car refinance quote process.
Depending on the debtor’s current car loan status, auto refinancing may be an option that could save money on monthly payments.
While the debtor can refinance with his or her financial institution, websites including E-Loan, Credit.com, and Bankrate.com offer an easy and convenient solution to obtaining competitive loan quotes and refinancing the auto loan.
See related articles, “How to Find Debt Consolidation Loans Online," “How to Find a Bad Credit Auto Loan," and "How to Finance a New Car With a Car Loan.”
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