Even experienced borrowers who own a home and carry other vehicles can benefit from a few tips on finding the best car refinance rates available today. Numerous methods of obtaining lower rates are effective and popular with consumers but the first step is always to assess your own FICO score and credit rating.
The best loan terms and lowest APRs are granted to borrowers who possess the highest FICO scores. Borrowers who make large down payments also get lower APRs, especially when in combination with a great credit rating. This is not as applicable to refinances as it is to original loans but still worthy of consideration for future borrowing-related reference.
Focusing on your FICO score involves obtaining a free copy of your credit report from all three major reporting bureaus. Equifax, Experian and TransUnion reports are all available at no cost to you once a year through the AnnualCreditReport.com website. One highly important tip about obtaining your credit report is to only use the Annual Credit Report official website or another, thoroughly vetted resource you trust.
Many identity-theft-related scams are active in modern times. Protecting your personal and financial information is a must. Once you securely obtain a copy of your credit report the next step is to review it in detail. Any negative issues you discover must be reported and disputed immediately. In the event your credit report is clear of any issues, the next step is to prepare for your auto refinance loan application process.
The documents you need for your car refinance loan are almost identical to those required when you applied for your original purchase loan. Proof of identity in the form of government-issued photo identification is required. Verification of citizenship or legal residence status is also required, as is your social security number (SSN), proof of income, proof of employment and tax returns from the last two years.
Because you are applying for a vehicle refinance loan you might also need to supply additional information about your automobile pursuant to accidents, damages and necessary repairs required since the day you first drove it off the lot.
A few companies with the lowest auto loan refinance rates today include:
- Bank of America
- OpenRoad Lending.
- Capital One.
Comparison-shopping between multiple refinance lenders is a vital part of getting the best APR possible. Online rate-comparison charts and APR calculators are available and simple to use. Submitting full applications to every lending company you consult is not necessary. Each lender pulls a soft credit check to prequalify you, which does not lower your FICO score. Full credit checks are only run when you submit an official application for final approval purposes. The Lending Tree provides rate-comparison options in addition to loan referral services.