Does Refinancing a Car Hurt Your Credit?

Does Refinancing a Car Hurt Your Credit?

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Does refinancing a car hurt your credit?

There may be many reasons why you’re considering refinancing a car loan and it’s really helpful to know as much as possible about the process before you decide whether it’s right for you. Whether you want to save money on interest or lower your monthly payments, refinancing a car can often get you a better deal than the initial one you got with your dealership.

It’s important to always consider your credit in any financial decision that you make. It’s unusual for your credit to be dramatically affected by refinancing a car, but to give you the ultimate peace of mind, contact Positive Lending Solutions to get expert help and advice.

Deciding whether to refinance your car or not

If you’re trying to decide whether refinancing a car loan is a good decision for you, you need to think carefully about your own personal financial circumstances.

It could be that you’re unhappy with your current car loan and want to shop around and find a better deal with better interest rates and loan terms that suit your situation. Refinancing a car can often give you the opportunity to get expert help in seeing what’s available and how you can improve on what you’re paying at the moment.

If you do make the decision to refinance your car, follow these top tips:

  • Avoid making multiple credit applications over a short time span – if rejected, these will raise red flags to potential lenders.
  • Make sure your credit score is as high as possible when you apply for car loan refinance – don’t apply if you have recently changed jobs, do not have a stable address or have no proof of income.
  • Be organised – this includes budgeting, doing your sums and making sure that you always make repayments in full and on time.

Refinancing your car loan: the process

If you decide to refinance your car loan, speak to Positive Lending Solutions so that we can understand exactly what you need and reconfirm that refinancing your car loan is the best option for you.

We’ll help you to apply to a lender who will review your application and check your credit. If the application is approved, the lender will pay off the old car loan.

When the old car loan is paid off, the lender’s rights will be taken off the car’s titles and replaced with the new lender’s.

How using a car loan specialist can help

If you do decide to go ahead with refinancing a car loan, you need to make sure that it’s absolutely worthwhile for you financially. This can be difficult to do especially when trying to weigh up all the different offerings in the car loan market today.

Asking for expert help can help to save you a huge amount of time, money and stress. Our expert team of brokers has instant access to some of the best car loan refinancing options on the market. We’ll always take your financial situation and your credit score in to account and will take every measure possible to help you to protect your credit rating.

With decades of experience, we know how the car loan industry works and we’ll be able to offer you the right product for your financial needs. Take advantage, contact Positive Lending Solutions today.

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