How to Refinance an Auto Loan: 6 Tips You Should Consider

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is Auto Loan Refinancing?
How to Refinance an Auto Loan
6 Tips for Refinancing an Auto Loan
1. Compare Your Options
2. Determine When the Right Time Is for You to Refinance Your Car Loan
To Get a Lower Interest Rate
To Shorten the Loan Term
To Extend the Loan Term
To Get Some Extra Cash
3. Get the Paperwork Ready First
Original Auto Loan
Vehicle Information
Auto Insurance Paperwork
Employment Records
Personal Stats
Name Date of birth Email address and phone number Address Social Security number Driver’s license number Work status Your bank’s name and info
4. Pay Attention to the Details
5. Prepare for a Hit on Your Credit Score
6. Have a Backup Plan
Typical Requirements to Refinance
Strong Credit Score
History of On-Time Payments
Improvement in Circumstances
Compare Auto Loan Refinancing Rates With Lantern
Frequently Asked Questions
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About the Author
Nancy Bilyeau writes about student loans, mortgages, car insurance, medical debt and many other finance topics for Lantern. A veteran of the magazine business, she has edited stories on personal finance for Good Housekeeping and DuJour magazines and has written articles for The Wall Street Journal, Readers' Digest, Parade, Town & Country and Lifetime/A&E, among others. She is a graduate of the University of Michigan.
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