Here’s how to get a better car loan – and avoid common potholes in the process. You can save a bundle by refinancing a loan on what may be your second-largest purchase next to a home – your car.
However, there are a few things you need to watch out for to avoid potholes on the road to savings.
Compare interest rates and terms on the websites of your local credit unions and don’t forget to ask your current lender for refinance rates. Many will refinance your loan at a rate below what you’re already paying because they want to keep your business.
If poor credit is preventing you from finding a cheaper loan, you may need to first take steps to improve your credit score.
Either way, refinancing an auto loan should not negatively impact your credit score in most cases. Just make sure you go to a reputable lender so your old loan is satisfied (the new lender pays it off when it issues your loan). Then make full, o-time payments on your new loan.
Rev. Dr. Donna Taylor is the Pastor of Andrew Chapel, United Methodist Church on the Northern Neck in Montross, VA. Rev. Dr. Taylor promotes best practices for financial literacy and financial empowerment in the church and leads workshops throughout Northern Virginia. Currently, she serves as the Chair of the District Finance Committee. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, VA. Rev. Dr. Donna Taylor is married to Dr. David Taylor, who is also the Director of our church-based free clinic. They have two adult children and three grandchildren. In her leisure time, Rev. Dr. Taylor enjoys traveling, jogging, weightlifting, swimming, yoga, and interior decorating. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, Virginia. Rev. Dr. Taylor was born and raised in New York City and recently discovered her ancestral roots in Guinea-Bissau, West Africa. Rev. Dr. Donna Taylor is married to David Taylor and they have a son and a daughter. Their daughter is a educator and son is an Active-Duty Senior Seaman in the Navy married with three children. In her leisure time, she enjoys traveling, reading, swimming, writing poetry, crocheting and spending time with her family.