Refinancing your car may seem like a daunting task but many people flourish under a refinanced policy. Most people select the easiest rates and offers at the dealership with the excitement of getting a new car, not reading the full terms of agreement. However many things can set your interest rate at a better standard for your budget such as improved credit, lower interest rates, being offered a bad interest rate to begin with, or the need to reduce monthly payments.
An Improved Credit Score
Credit scores change daily. It is a range of scores that shows how worthy you are with payments, and can fluctuate at any time making it a good and bad tool for the average adult. When you were first making payments your credit score may not have been as great as it is now resulting in heavier payments in the long run.
Check on your credit on trusty sites such as credit karma or your local bank branch. Not only will it be good to check up on your score but you can seriously drop the high rates against your policy.
Lower Interest Rates
Today interest rates are among the best they’ve been in a while. Although it may not as shifted as high as you liked, your interest rate may have dropped significantly. Especially if you’re a new driver, dealerships love to drop a high rate seeing a high risk of giving you a car. And if you have an untouched credit score, your interest rate will go down since you are a “low risk” borrower.
You May Have Been Offered a Bad Interest Rate
Like many people, picking up a new car at the dealership can be an extremely exciting time in your life. Younger people are especially at high risk since some dealerships see it as a great time to take advantage of them. Or, if you didn’t do your homework on current rates in your are you can be paying more than you like.
The best time to refinance is after one year of payments, especially if you think you were offered a bad deal. Not do you only show the dealership you are a trusty borrower but your credit score will go up as well and you can say “slash my payments!” One of the top auto refinancers are Ignition Financial. They work hard to find you the lowest rate and have a friendly and courteous staff.