Exploring auto loan refinancing options is a smart financial strategy to lower your payment or change the term on your auto loan. Refinancing can also provide the opportunity to add valuable products that increase your control over the cost of vehicle ownership or let you adapt to changes in your life, such as adding or removing a borrower from your car loan. Since refinancing your auto loan means getting a completely new auto loan that pays off the old loan, it provides the opportunity for meaningful changes that help you manage your budget and financial plans.
Of course, not everyone qualifies to refinance their loan. A credit score is one key element, but it isn’t the only factor that dictates whether you qualify or the terms of the new loan for which you may qualify. Lenders use many factors related to your personal financial strength and history as well as vehicle criteria to determine your eligibility and loan terms. Each lender evaluates those criteria differently and has unique methods to assign an interest rate to a loan application, based on their definition of the associated risk.
Since applying for a new auto loan involves one or more lenders pulling a credit report, which may affect your credit score, it’s a good idea to review your qualifications first to determine if you are likely to qualify. In other words, going through a pre-qualification evaluation can be helpful, both in terms of your credit score and your time and effort. RefiJet uses the following factors to conduct a pre-qualification process that involves comparing your criteria against the criteria of various lenders in our program, then submitting your application to the one lender that is the best fit for you. If you pre-qualify through RefiJet, the chances are very high that you will qualify with one of our lenders.
Vehicle Criteria: Lenders evaluate multiple criteria regarding the value of the vehicle being refinanced. They use a third-party valuation guide to establish your vehicle’s market value, then compare it to the amount of the loan you need. This Loan-to-Value ratio is a key risk factor when deciding whether or not to approve a loan and setting loan terms, such as interest rate. In addition, lenders typically set guidelines about the type of vehicles they will or won’t allow.
Financial Criteria: Your past credit history as well as your current financial stability factor in your ability to qualify for a loan and the terms for which you qualify. The following factors are considered when evaluating whether you will qualify for a loan. In some cases, an individual factor can disqualify you if you don’t pass the minimum threshold, even if the other factors qualify.
If it looks like you may pre-qualify for an auto loan refinance, contact RefiJet to submit your application information. At no cost to you, RefiJet will evaluate that information against various lenders’ lending programs to determine if you pre-qualify and the likely loan terms from appropriate lenders. Then, you can select the option that works best for you and approve your application being submitted to a lender for formal approval. It’s a fast, simple, and safe way to evaluate your pre-qualified options without having to submit multiple applications to multiple lenders.
Are you employed or have a verifiable source of income?
Have you made your recent car payments on-time?
Your vehicle must be 10 years old or newer.
Your vehicle must have full coverage insurance.
You must have a valid vehicle registration.
You must have a valid driver’s license.
The vehicle title is the legal document that is the state’s record of who owns the vehicle.
