What Credit Score Do I Need to Refinance My Auto Loan? 3 Things You Should Know
Auto loan financing is one of those things that most of us never even think to look into
. We just naturally assume that we are locked into our current auto loan - and its interest rate - until we pay off the loan or sell the car.However, refinancing your car loan can actually be a really smart thing to do. In fact, there is really nothing to hold you back from refinancing right away. Specifically, there are no laws that say you cannot refinance your loan.
Your only conditions for refinancing would be to find another lender who is willing to grant you a loan. And, in most cases you would only want to move forward with the car refinance if the new lender can promise you a lower APR (interest rate) than you have on your existing loan.
The interest rate for which you can qualify depends upon two main factors: a. the average auto loan interest rates in the market today, and, b. your current FICO or credit score.
If you are wondering, "What credit score do I need to refinance my auto loan?", here are 3 things you should know:
1. If you have an excellent credit score above 750, just start applying to auto refinance lenders:
The truth is, you can refinance your loan with any credit score, as long as you can find a lender to do it. If you have an "excellent" credit score of 750 or above, you really have nothing to do in order to prepare for getting a loan. Just start applying to lenders and take the best offer that comes along.
2. If you have a fair or good score about 620, do some homework first:
A score above 620 is considered "fair" and a score above 660 is considered "good." If you are in either of these ranges, you will want to see if you can bump your score up a bit before applying. To do this, start by running your current credit report from each of the three big monitoring agencies. Go through each report and look for any mistakes that could be holding your score down. If you find such mistakes, do not hesitate in protesting them. Then, wait 30 days or so before applying for refinancing and your score should have gotten significantly better by then.
3. If you have a poor score under 620, you can get approved but you have your work cut out for you:
When your score is under 620, you have what is considered "poor" credit. The good news is that you, too, can still qualify for a refinance loan. The key is to apply to at least 3-5 "bad credit auto financing lenders." Compare the offers you receive and choose the best one. You will be off and running in no time.
Consider these 3 tips as you apply for an auto refinance loan.
What Credit Score Do I Need to Refinance My Auto Loan? 3 Things You Should Know
By: Marie-Claire Smith Safety Floor Is Essential To Avoid Injuries Auto Mass Traffic Review - Can You Make Money With Auto Mass Traffic? How to Replace Your Auto Glass How Memory Foam Mattresses Can Help Heal Injury Rooney World Cup injury fear of the British media have exposed the problem chubby knees Rooney injury aggravated or impede the advance of South Africa and the league campaign to say goodbye largest lithium ion automotive battery plant in North America The useful Pickup trucks buying tips Auto Damage Experts, INC. Removes Doubts not Dents! Things You Need To Know About Auto Damage Experts Auto Seat Covers - A Luxurious Change for Your Car Cherish the class of vivid brands of Classic Trucks Auto Damage Experts: It's not what they do...It's How They Do It!!!