3 Myths About Car Loan Refinancing Debunked

Millions of car owners who are unhappy with their current car loans and might like to refinance are mistakenly under the impression that this is not an option for them. That misconception may be due to a number of persistent myths surrounding auto refinance loans that often lead people astray. The following are three of the biggest myths debunked. Hopefully, this new information will demonstrate that you also are likely to benefit from refinancing your vehicle.

1. You Need a Great Credit Score to Get Financing

So your credit score has seen better days. Maybe it is only average or not as good as it used to be. In the past, you have decided there is no point in even considering getting new financing on a vehicle because you think you will not get anywhere. Luckily, that is not true at all.

Many lenders can assist customers with less-than-ideal credit scores and are happy to do so. Your credit score is not the only factor that determines your eligibility for a loan, so you may be able to qualify based on other criteria.

2. Only One Person Can Apply for a Used Car Loan

Unfortunately, not everyone realizes that you do not have to apply for financing alone just because you have a used car. As with a new car loan and other kinds of financial products, you can get auto-loan refinancing with the help of a spouse or family member. For those who might have trouble cinching the loan by themselves, this can be a true life-saver.

3. Refinancing Is Not Worth It

Finally, there is a myth that refinancing your used vehicle is not worth it, a hassle, or not advantageous. That is not true either! Here are several reasons why auto-loan refinance can be well worth it:

Save Money with a Lower Interest Rate and Lower Monthly Payments

According to experts on auto refinance loans like Lantern by SoFi, saving money is the goal of taking out a new loan to pay for your current one. Many lenders are eager to help you do just that, usually by working out a way to lower your interest rate, monthly payments, or both.

Refinancing Can Be Quick and Painless

The process is usually not as daunting as it may at first seem. Remember, lenders want to sell their product to you, so in most cases, they have already streamlined everything for your benefit and quick approval.

Enjoy Additional Perks

Lenders want your business and will pay for additional conveniences to attract you! Lantern by SoFi, for example, will waive your application fee and handle all the cumbersome details of paying off your old loan and re-titling your vehicle.

Even if you did not consider yourself a perfect candidate for auto refinance loans before, perhaps now it is evident you are more qualified than you thought! At the very least, you now know that certain myths you might have heard in the past are false. Reasonably, then, you can conclude that if you are thinking about refinancing, it is worth finding out more.

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