How Long Before You Can Refinance A Car Loan? Get Fast Approved For One

Dec. 10, 2012 - PRLog -- Refinancing a car loan can help the borrowers in many ways. One can surely save hundreds of dollars monthly by getting their car loan refinanced. Refinancing lowers down the overall monthly payment and interest rates and thus the borrower gets a new affordable loan. But how long before you can refinance a car loan? Refinancing can be difficult if the car is not with you for the long time. The banks and other lenders have their rules regarding the refinancing process and they differ from company to company.

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How Long Before You Can Refinance A Car Loan?
Normally, lenders don’t approve the refinance loan application if the borrower has not made payments on his existing loan for at least a year or so.  When the borrower has made the payment, it shows the track records and this give the indication that the borrower can easily pay off the loan without any worries. Exceptions are also allowed in few cases like the borrower has switched the lender. In this case, the borrower needs to know their terms and conditions and work accordingly.

Where can you get the loan from?
The borrower needs to first consider this point. If he is getting the loan from the dealer than it’s not a very good deal as they charge high interest rate as compared to other lenders. Banks and credit unions are the best option for car refinance loan because they charge much lower rates as compared to other lenders. Online lenders also work as the best option. Borrowers can first compare the auto loan quotes from various lenders and choose the lowest rate loan deal. This would help the borrower in getting the best deal of all.

Before getting your loan refinance, it’s important to check the credit rating. If the borrower is paying the loan on time, his credit score might have improved and thus he would be able to get good rates for his loan easily. There is exactly no such time for refinancing your car loan. Thus the borrowers should look out for the best option for refinancing his car loan. If he gets a good deal, he should jump in it immediately and lower down his burden.