Your credit score is a major factor in determining the interest rate you'll get on an auto refinance. Lenders use your credit score to assess your risk as a borrower. The higher your credit score, the lower your interest rate will be.
Step 2: Get Pre-Approved for an Auto Refinance
Getting pre-approved for an auto refinance is a great way to compare interest rates from different lenders. When you get pre-approved, the lender will give you a written offer that states the interest rate, loan term, and down payment (if required). This will help you make an informed decision about which lender to choose.
Step 3: Compare Interest Rates
Once you have been pre-approved for an auto refinance, it's time to compare interest rates from different lenders. Be sure to compare the total cost of the loan, including interest, fees, and other charges. The lowest interest rate may not always be the best deal.
Step 4: Choose a Lender and Refinance Your Auto Loan
After you have chosen a lender, you will need to sign the loan documents and pay any required fees. The lender will then pay off the balance on your existing auto loan and send you a check for the difference.
