There are instances where you can’t find the right deal for yourself. In times like these, there’s no need to hurry. Wait patiently for your ideal kind of deal to show up. You have plenty of time, so don’t rush things. When can I refinance my car loan? You can’t find a new lender as soon as you drive off the parking lot with your new car, right?
So, take everything at a steady pace. And let’s look into how early and late you can refinance your car.
A Guide to Refinancing Timeline
Refinancing is a means to lower the amount of money you’ll be paying for the monthly payments. It’s better and best to wait for a year before applying for auto refinancing, especially when you have taken out the loan on a bad credit score. This one-year gap allows your credit score to jump back to normal, giving you chances to qualify for refinancing. On the other hand, if you can’t find your ideal interest rate while your credit score is doing well, you will qualify for refinancing in six months only.
It’s clear that your refinancing solely does not depend on your credit score. But also on the ability of the lender you’re working with. If your path is clear, you can even get refinancing in two to three days only. But, you should at least wait for 60 to 90 days because it prevents problems with paperwork and title transfer.
Refinance and Save up Money Now
When you choose to refinance your car loan, you pick to close out your original auto loan and start a new one, probably with a new lender. The main objective of loan refinancing is to help you save money from the monthly payments by lowering the amounts. You can do so by refinancing your loan to a lower interest rate loan or a long-term one.
The combo of lower interest rates and long-term loan plans will help you put aside a hefty sum of money. Since your ultimate goal is to save money, try every possible means to qualify for a lower interest rate. Or else you will end up paying even more money than the original plan without realizing it.
Qualifications You Need to Refinance Your Car Loan
Qualifying for a low-interest rate refinanced loan can be difficult. To increase your chances of qualifying, you must strive to bring your credit score to the green zone, even if it takes you to work an extra mile.
There is no doubt that having a decent credit score is a fundamental requirement to get qualified. If you have succeeded in improving your credit score since taking out the auto loan, you are most likely to get the refinanced loan.
Other than credit score, you must fulfill requirements like:
- Having a loan that fits the lender’s criterion
- Having a good car mileage. Less than 100,000 miles would be perfect.
- Paying your current loan
Refinance vs Trade-in. What Should I Choose?
The bitter truth is that refinancing doesn’t work out all the time. Sometimes, your car may not be eligible for qualifying, which can make the entire process fail. If you are looking for something to replace refinancing, consider trading in your vehicle. It is an affordable solution that has proved to be workable for many of us.
When choosing the trade-in option, you have the freedom to pick any equity in your car as a down payment. However, if you have negative equity, you have the option to roll it into your next auto loan plan. There are numerous benefits of following this easy and uncomplicated route. You will most probably get a good deal because used vehicles are so much in public demand. That’s why to act wise and fast while choosing the trade-in path.
If you think you are mentally and financially ready to start a new loan, we will gladly offer a helping hand. At CarLoanRefinancing, with our years of professional experience, we’ll connect you with reliable borrowers who will help fill your needs. Take out some time and visit our convenient and time-saving web portal to fill out the form.