Love your car but not the hefty interest rate you're paying? Refinancing may be the way to go.
If you've built up job stability, made loan payments on time for a year or more or have otherwise improved your credit rating, you may qualify for a lower interest rate. However, if you have encountered damage to your credit or the car since the loan's inception, this may not be the time to refinance -- it might actually negatively affect the interest rate you get on any subsequent refinancing attempt.
Borrowers in good standing with the lender may be able to get a rate modification in which the lender agrees to simply lower your interest rate. Check this option first. If the lender is willing to reduce the rate, you'll capture any interest savings without a refinancing. You'll potentially save time and money.
If your current lender is unwilling to reduce your interest rate, start on the path to refinancing your loan.
The first step is to review your current loan documents.
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