Paying off auto loans seems like a heavy burden on the shoulder and the budget as well. The only hope that keeps us going is that we are not stuck with it for a lifetime. We refinance our auto loans and get to pay lower payments or interest rates or even both. Refinancing a car loan helps you save up a hefty sum of money in the long journey. To give a short example, loan borrowers save up to $912 per year by refinancing.
If you have never considered refinancing, you should. It is an uncomplicated process if done through CarLoanRefinancing. We hold years of experience in this field.
What Are the Steps to Refinance My Car Loan Through CarLoanRefinancing?
It doesn’t require any rocket knowledge in refinancing a car loan. Through CarLoanRefinancing, we have simplified refinancing even more by using the latest technology. We have award-winning customer support that helps you walk through the entire process step-by-step.
Step 1: Go through your rate.
Visit our online form and check out what rate we are offering. It takes less than five minutes and only basic information, such as:
- Name
- Birthdate
- Home address
- Education status
- Income proof
We perform a soft inquiry on your credit, meaning this step doesn’t affect your credit score. We get most of the car information by car and the car loan information you’ve provided. If we can’t, we’ll require other details like car model, trim, and mileage.
Step 2: Review loan offers
If you pass the previous step, we’ll give you loan offers to review. This step helps you choose the right monthly payment amount, the length of the plan, and the interest rate.
The loan amount we’ll show will be higher than your original loan balance. It’s normal because your lender will refund the leftover money once the previous balance is $0.
Step 3: Submit your application form.
After selecting any plan you find suitable, you’ll need to provide additional information like your social security number and your insurance details. After this, we’ll instantly verify your application and redirect you to step number five.
Step 4: Submit any additional documents.
Sometimes, we also require additional documents like a driver’s license or a copy of your pay stub.
If we need any extra information, we’ll reach out to you right away. Your cooperation is a must through this time so keep checking your email to avoid any inconveniences in the application verification.
Step 5: Check and sign the final documents.
Once we’ve collected and verified the required documents, we’ll call you to check the loan terms & conditions and sign the permission form for a hard credit check. Most of the time, a hard credit check barely affects your credit score. According to FICO, the consequences of the hard inquiry would be marked off completely within two years.
After receiving your signature on the promissory note, we’ll go through the vehicle and insurance details once again. We’ll also check whether you’ve signed the documents to start working with CarLoanRefinancing or not.
Usually, we do these steps electronically, but due to varying laws and policies in different states, you also need to sign a physical copy. For this purpose, we’ll mail you the forms along with a prepaid envelope. Some states also demand a notarized form. For this purpose, we’ll provide detailed instructions that you have to follow.
Step 6: CarLoanRefinancing pays your old loan
After going through the official paperwork, we’ll deliver a check to your previous lender to clear your old auto loan. If we’ve overpaid the lender, he’ll have to refund it back to you.
Make sure to pay off your loan entirely until you see $0.
After we’ve cleared the old balance, the title transfer process will start. It may take up to 60 days to complete it. We may transfer the loan to your state’s Department of Motor Vehicles or under your name.
Step 7: Shift to paying your CarLoanRefinancing powered loan
After CarLoanRefinancing clears your previous loan balance, you’ll start to pay for your new loan monthly. You should pay the first payment within 30 days of initiating the new loan. We’ll plan the process in an organized way so that you don’t have to make payments for two loans in a month.
We’ll make things easy for you by presenting several easy payment methods.
Switching to automatic payment will lift off the burden of making manual payments monthly. We also offer a bi-monthly payment option. You can make such payments via autopay or manually and check your paychecks regularly.
All in all, CarLoanRefinancing has come up with an easy and convenient method for refinancing a car loan.