How to Refinance a Car Loan

Video Transcript

"Refinancing a loan had been relatively easy. In terms of paperwork, it's much easier to refinance then the original purchase. So if you do have excellent credit, excellent credit score, contact the company where you have your loan now and with the recent drop in interest rates, they may actually be open to refinancing your loan at the lower interest rate which would result in lower monthly payments for you. But be careful about this because if the term is new and is actually extended beyond your original loan, you may end up paying more. So just be careful about both the interest rate, the monthly payment as well as the term. Now these days it may be a little bit harder to refinance given the current economic and credit crisis, but companies will still refinance, what they've done though is change what they consider an acceptable credit score in terms of considering whether or not to approve a person for refinance. So check your credit score first, know what it is and then go ahead and contact the company and negotiate and see if they would be open to refinancing your car loan."