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If you’re thinking about refinancing your car loan, you’re probably hoping to lower your monthly payment. Refinancing your auto loan can help bring down your monthly costs or reduce your interest rate. Be sure to crunch the numbers before applying in order to find the best deal for you.

Here are a few tips to think about when deciding whether or not to refinance your auto loan.

Interest rates

If the interest rate you qualify for today is significantly lower than your current loan rate, it may be a good time to refinance a car. If it’s the same or higher, it’s probably not the right time to refinance.

Your credit score

Has your credit score changed since your original car loan? If it’s improved, your better score may help you qualify for a lower interest rate.

Your income

Refinancing your auto loan so you have a lower monthly payment can make sense if your income has dipped. The lower payment can help ease the strain on your monthly budget — and if you don’t have one, think about creating a budget so you can better control all your finances.

Time remaining on your loan

Refinancing and extending your loan term can lower your payments and keep more money in your pocket each month — but you may pay more in interest in the long run. On the other hand, refinancing to a lower interest rate at the same or shorter term as you have now will help you pay less overall.