Can you refinance a car with the same lender?
When considering refinancing your car, your current lender might be your first thought. However, not all lenders are able to refinance auto loans. Whether or not your lender is able to help you may depend on the situation. Here are some things to consider if you’re considering refinancing your car loan with the same lender.
Can I refinance with my current lender? Refinancing involves replacing your car loan contract with another with different rates or conditions. Not all lenders are able to do this. Your current lender is usually a good place to start when looking to refinance your car. However, they may not be willing or able to help you refinance, so you may need to seek help from a new lender.
If your current lender is unable to refinance your loan, there are many places you can seek help, banks, credit unions and online lenders all have the potential to help you. But how do you know who to contact? This is where fare shopping comes in.
Shop around for the best deal. Rate shopping means asking for something, in this case a refinance, from multiple lenders to find the most ideal situation and the deal that’s right for you. The rate purchase window may vary, but to minimize the impact on your credit, all your requests for refinancing must be made within 14 days. When you do this, all inquiries appear on your credit reports, but only one has an impact on your credit score.
Rate shopping can be more difficult as a borrower with bad credit, and you may have several high interest rate loans to choose from. In that case, working with a refinance lender that specializes in bad credit can help. In order to refinance, your credit score generally must have improved since the time you took out your bad credit car loan. This is, however, only one of the standard refinancing requirements. In general, you must also be current on your loan, not have negative equity, and your loan and vehicle must meet the lender’s specifications.
Ready to refinance your vehicle? If you’re ready to see what you’re entitled to in terms of refinancing, we want to help. AT Auto Express Credit we work with many different refinance lenders and want to connect you with one that can help you. Simply fill out our fast and free auto loan refinance application form to get started.