Live Life Team
Refinancing your current car loan is something that you may have heard about but never really looked into further. However, for many people in the USA, it is worth investigating. Put simply, car loan refinance means you apply to refinance your current auto loan with a different lender. Doing so can secure a lower interest rate on the new deal to bring your monthly loan repayments down. Car loan refinance can also help to shorten the overall loan term and also give you access to a better deal than the one you originally took out.
But how does the application process work and what documents will you need?
Head online to make it simple
As we live in an increasingly digital world, you will not be surprised to hear that applying for car loan refinancing is easiest and quickest when done online.
Even a cursory search will bring up lots of lenders to check out who offer this sort of service. Just remember to have a good look at a few so you find the very best deal you can. This will differ for everyone as the new contract will be based on personal things like what sort of vehicle you have and your credit score. Applying is usually pretty simple and can be quickly completed at the lender’s website. To minimize the impact on your credit score, apply to any new lenders within a 14-day period as they will all be then treated as one application only.
What documents will you need?
Whether you apply for car loan refinance online or in person, there are some documents you will always be asked to provide. These are essential as your application will not be accepted without them. They include:
- Your driver’s license
- The vehicle ID number of the car
- Social security number
- Proof of employment
- Current lender details
The above are the basic documents that the new lender will ask for when you apply. It is wise to have them ready so there is no delay when you do so. Naturally, if you apply online, you can scan and email them across to the lender.
What happens next?
Once you have completed the application and sent across the above documents, the new lender will review them all. If they accept your application for refinancing, then a new contract will be sent out to you. You need to carefully read this, raise any queries you have and then sign when happy. Once signed and returned, your newly refinanced auto loan will begin and your monthly payments will be at the new rate.
Documents are a crucial part of the process
As noted above, there are a few essential documents that all lenders will ask for when you apply to them. If you do not have any for some reason, it is best to speak with the new lender’s customer service team to resolve the issue at the time.
