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Dunnville auto loan refinancing FAQs

Dunnville auto loan refinancing FAQs

Our Dunnville auto loans team seem to have fielded more questions about loan refinancing these last couple of weeks than at any time before. To help all of our customers, we thought we would put together an FAQ blog post to answer many of the more common questions we are asked.

The following are some common auto loan refinancing questions we come across. We hope they provide the answers you’re looking for.

Can you refinance an auto loan if you have bad credit?

Yes, you can refinance an auto loan if you have bad credit. If you qualified for the original loan and nothing has changed, you’ll very likely qualify to a new one. Much will depend on affordability, your credit score, the amount you need and your situation.

It is entirely possible to refinance if you have bad credit. It won’t be cheap but it is certainly possible!

Can you refinance an auto loan for a longer term?

Yes, you can refinance an auto loan for a longer term. You can also refinance for a shorter term if you find the loan easily affordable.

Changing the loan term is a common reason for people refinancing. Whether that’s a longer term for more affordable monthly payments or a shorter term to pay off the loan faster, both will work.

Can you refinance an auto loan to free up cash?

Yes, you can refinance an auto loan to free up cash. As long as the new loan is affordable, you have equity in the car and you have a good credit score, you can free up cash.

This is another common reason for refinancing. Either to use as a consolidation loan to pay off other debts or to free up cash for another project or other reason.

As long as you have equity in the car and have a good credit score, borrowing more is definitely possible and actually very common.

Will refinancing an auto loan impact my credit score?

Refinancing an auto loan will impact your credit score to begin with. Every hard inquiry on your credit report will slightly reduce your score. Any increase in debt to income will also have a minor impact.

However, the score will quickly recover and the regular monthly payments of the loan could help to increase your credit score over time.

Can I get a lower interest rate if I refinance?

It may be possible to get a lower rate if you refinance an auto loan. Much will depend on the rate you’re paying now and the prevailing rate at the time. If interest rates have fallen since you took out your original loan, you may get a lower rate.

If your original loan was a bad credit auto loan or you were in the lower regions of credit scores and have improved since, you could also get a lower rate.

That last is another common reason for refinancing. Someone who had bad credit takes out a loan, pays it off for a couple of years. Their credit score improves thanks to a flawless payment history and they can now qualify for a much cheaper standard auto loan.

We will use all our skill and experience to deliver the lowest possible Dunnville auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

Categories: Auto Loan

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