Everyone is always looking for a way to get a few extra bucks a month. And chances are that there are several ways to do it that you’re not aware of. For example, a quick and easy way to do that may be to refinance your car loan!

What is a refinance?

When you refinance a car loan you are essentially just getting a new loan on your car. The goal here is to get a lower interest rate on your car loan, plus you can reset the term of the loan. By doing this, you likely can save $50.00 or more on your monthly payments! The amount you save depends on how big your loan is. Many banks and credit unions will require you to have an account with them, which may be required to have a minimum balance. Other than that you may only have some minor fees to pay.

Who can refinance?

Pretty much anyone who wants to lower their monthly payments, or just get a lower interest rate, can find a way to refinance a car loan. Most companies that offer refinance loans will run a credit check, and based on how your credit looks they will either approve or deny your application. However, the good news is that there are a lot of companies out there that will approve a car loan if you have little, no, or bad credit, so just make sure you shop around and see what options you have available to you.

Where do I refinance?

Most financial institutions will have several options to choose from when they help you refinance a car loan. If your loan is through a dealership they will likely be able to do it for you as well. No matter what company you choose to refinance with, you’ll need to go through the application process with them. Thankfully these applications are usually very simple and fast. Shop around to check the interest rates at several companies before filling out any applications as they won’t all have the same interest rates or loan terms.

Why should I refinance?

If you’ve been watching the news you know that interest rates are really low right now. By choosing to refinance a car loan you could possibly likely save yourself several hundred dollars each month. This of course depends on the size of your loan. The goal is to get a lower interest rate, and a longer term than your current loan, both of which will help to lower your monthly payments.