Ignition Financial wants to advise anyone who is ready to get their car refinanced, but some people may have questions about the refinancing process. Unlike different refinancing processes that require appraisals, fees, and a lot of time, refinancing a vehicle is simple and quick. It’s so easy to refinance a vehicle that most of the process can be done online. Ignition Financial has even made their own online application, which will save you time. There are several specific reasons why a person may want to refinance their loan, so determine if any of these reasons fit your situation.
Credit Improvement – If you’ve improved your credit in the time that you’ve been paying for your car, then it’s likely that refinancing your car will lower your interest rates as well as the amount you are paying on the loan every month. Improved credit is always best, especially if it’s improved to where it goes from fair credit to good credit, so this would be a good time to refinance your car. You can also expect to get a very good interest rate that can ultimately save you hundreds of dollars a month and thousands of dollars throughout the lifetime of the loan.
Change Of A Financial Situation – You may get a job expecting to be paid $30,000 a year, but anything can happen that can change your income. You can be injured, you can be laid off, or you may even have a child, which changes the circumstances of your monthly budget. Whenever your financial situation changes, it may be necessary to refinance your vehicle to save you more money each month, especially if you need to allocate that extra money towards other expenses. The only thing you want to do when your financial situation changes is to keep paying on your car loan until you can get refinanced.
Interest Rates Change/High Initial Interest Rates – When you received your previous loan, you were given a high interest rate, and you know that because things have changed, such as credit improvement, you feel you can get lower interest rates when you refinance. You didn’t get the best rate when you first purchased your vehicle, so refinancing may give you the rate that you wanted all along. Interest rates also can drop over time, so by default, refinancing your vehicle may be able to save you money, even if your credit rating hasn’t changed.