How to Refinance a Car Loan

Video Transcript

"Looking to lower the rate on your car? Hi my name is Carrie Kukuda the Someday Coach. I'm here to tell you how to refinance your car loan. Well first off, a lot of times people will want, you got to know why you want to refinance. So you want to refinance maybe to lower the rate, lower the payment and pay it off quicker. The next thing you want to think of is that you need to check your credit before you can even consider a refinance. Your credit score typically will need to be over 600. If it's not, you need to repair your credit first. If it's over 600 of course you can be considered for a loan. The lower the credit, the more you're going to pay in interest. But if you've cleaned up your credit and you think you might be eligible for a lower rate, now is the time to think about it. And what you want to do is shop around so shop around and see who has the best rate. Shop where you already have the loan presently, maybe they have an incentive program for you. And then you can also shop around to other financial institutions and credit unions are always good for financing a car. Again, if you're going to refinance, if you've cleaned up your credit and you would think you're eligible for a lower rate, do it soon because they actually take most of their interest in the beginning of the loan. So the quicker you do it, the more you save. You also want to make sure some other things that you want to make sure is that the value of the car is still good enough and not as high as, the value of the car is worth more than what you owe. That's something to definitely consider when you're doing that. So if you want to refinance, these are some tips for you. Thank you, Carrie Kukuda."