Refinancing your car loan can lower your monthly rate and save thousands over the life of your loan. With a good credit score and history of 6 to 12 months of on-time payments, you could qualify for a rate that makes a refinance worth your while.
Depending on the details of your original loan, refinancing can save money on interest, reduce your monthly payment, or both. Here are the situations where it makes sense to consider applying for an auto refinance:
Bankrate’s auto refinance calculator can help you determine how much money a new rate would save you on interest, monthly payments, or even both. To use it, input the details of your current loan: your monthly payment, remaining balance, interest rate, and the remaining loan term.
Next, play around with the interest rate and term for your new loan until the estimated savings or monthly payment are in your favor. Once you have an idea of what term and interest rate will make refinancing worth your while, it’s time to get prequalified. See current offers from Bankrate lending partners to compare different rates and terms on auto loans.