Refinancing through a Credit Union: Is it for Me?

Monday, April 29, 2019

Refinancing. It's not for everyone.

And, if you're not strategic in your financial choices, then the whole process could come back to bite you further down the road.

So, why take the risk?

And what is refinancing, anyway—is it an economically sound decision to make? How can you tell if it's right for you?

A basic definition

When you refinance, you're basically taking out a new loan with better terms.

You'll use your new loan to pay off your old one, and then you'll pay either less in interest or less on your overall monthly payment. This way, you'll be able to hang on to a little more cash over time.

When to consider refinancing

You might want to consider refinancing your auto loan if:

  • Your credit score has improved
  • You need cash to cover more pressing expenses
  • You're eager to change to a better lender

Additionally, if interest rates have improved, but you're stuck with the same terms from when you originally took out your car loan, you might want to pursue the whole refinancing approach.

A note of caution, though: whenever you refinance a car loan, the vehicle will—technically speaking—be "used," at least in the eyes of your lender.

So, what does that mean for you? Well, it could mean a higher than usual interest rate over time, at least when compared to what you would pay in interest on a new vehicle.

Why refinance through a credit union?

When you finance through a credit union, you'll enjoy the lowest rates possible. If your vehicle is relatively new, and you have a credit score of 740 or better, expect to pay as little as 3.74%.

The process is relatively simple. You'll just need the following in order to apply:

  • Your driver's license
  • Your Social Security card
  • The title & registration for your vehicle
  • Two to three months' worth of paystubs
  • A credit report

Make car buying a SAFE bet. Take advantage of our low rates, and apply for an auto loan from us today!