When interest rates drop, many people look at auto refinance loan rates to see if it would be best for them to refinance. There are many ways to ensure you get the best rates when you look at car refinancing. By following these tips, you could be well on your way to saving hundreds, or even thousands of dollars over the life of your car loan.
Make monthly payments electronicallySome lenders offer as much as a half point discount if you elect this option. It also makes it easier for you as well. You will no longer have to remember to send in your payment a week ahead of time and the payment will be debited on the day it is due.
Many lenders offer reduced auto refinance loan rates if you elect to make your payments electronically. This is as simple as giving them your bank account number so your payment can be debited automatically each month.
Apply at your lender's website
Applying online for your car refinancing loan is another way you can save money. Auto refinance loan rates can be higher if you decide to apply by phone, fax or mail. This puts more work on the lender, as someone has to manually key the information. It also allows for errors. When you apply online, the information can simply be downloaded. Because it costs the lender less to process your application, you pay less for your loan.
Apply at several loan providers
You should always apply at several loan providers whether it is online, at a bank, credit union or finance company. By shopping around, you can ensure you are getting the best auto refinance loan rates. Be sure to let the lenders know you are shopping around as well and don't be shy about informing them of a better offer from a competitor.
It can be especially easy to apply at several loan providers online. You can access hundreds of lenders with just a click of your mouse. Online lenders generally offer lower rates, as they don't have as much overhead. Many online loans also feature no application fees, no down payment and an interest rate lock. All of this makes online loans very attractive for many car owners who are looking at car refinancing options.
Have all of the required loan application information handy
Be sure you have all of the information you will be asked to provide on your loan application. By having this information handy and ensuring its accuracy, you will make the loan application and approval process much easier.
You generally will be asked to provide:
• Contact information
• Your income and current employer
• Information about the car (make, model, mileage)
• Loan amount
• Permission to pull your credit history
Keep your credit report accurate
Your auto refinance loan rate will be based in large part on your credit score. Your credit report features information about all of your debt obligations. Your ability in the past to meet these obligations determines your credit score. A higher score reflects a better credit history. It is important to be sure that the information contained on your credit report is accurate. You can request your credit report from each reporting agency and request for erroneous information to be deleted if it is found.
Find a loan provider that specializes in your situation
There are loan providers out there for every type of situation. If you have good credit, bad credit or no credit, there is a lender for you. It is important to find a lender who specializes in your credit situation. If you have bad credit and approach a lender who only makes loans to those with excellent credit, you will only be wasting your time. The loan approval process will run much smoother and you will find the best auto refinancing rates if you seek out the lender who caters to the type of loan you need.
Apply directly with the lender not the middleman
It is important that you apply for car refinancing directly with the lender. Sometimes you will find that there is a broker involved in the equation. In most cases, you will receive a higher rate through this process because the lender has to pay the broker. Your best bet is to go directly to the lender for car refinancing.
It is wise to keep track of auto refinance loan rates. When rates are at their best, you can refinance and save yourself money all at no cost and with almost no stress compared to refinancing a home loan. Be sure to keep these tips in mind to ensure you get the best deal when you are considering car refinancing.