If you had an easy way to lower your monthly car payment, you’d probably jump at the opportunity. But how do you know if refinancing makes sense for your finances? Let’s talk about the most common reasons you should refinance.

Interest rates have dropped 

If you locked in your auto loan when rates were higher, refinancing could lower your minimum payment and help you pay off your car faster. Refinancing when rates are low is a smart financial move if the potential savings outweigh the loan fees.

Your credit score has improved

A bump in your credit score could qualify you for a better loan term. Check your credit score because you may be building up credit faster than you realize. Moving up even one credit bracket, from the D range to the C range, for example, could qualify you for a much lower APR on your loan.

You want a lower monthly payment 

If your income has decreased recently, or you want to free up funds to meet other financial goals, refinancing to a longer term can give you more time to pay off your loan, which will lower your monthly payments.

You financed through a dealership

Dealerships may not offer you the best rates available. If you took out your loan through a dealer, especially without negotiating the interest rate, refinancing could save you thousands over the remaining life of your loan.

Are You Ready to Refinance Your Auto Loan?

Once you’ve made the decision to refinance, get pre-approved at HHCU. We’re taking HALF off refinanced vehicle loans, so you can stay in the car you love with a payment you can actually afford.

Gather all necessary information before you apply, including:

• Current loan balance, interest rate and remaining balance
• Valid driver’s license
• VIN and title
• Proof of employment
• Proof of insurance

Refi and save with HHCU! Start your application process today.