Is it Time to Refinance Your Auto Loan?

January 24th, 2019

When most of us think of loan refinancing, we think of mortgages. But you can also refinance your auto loan– which is even easier!

There are two main reasons you should refinance your auto loan:

  • You’ve found a lower interest rate
  • Your credit score has improved

Lower Rate

If you don’t already know, credit unions historically have the lowest interest rates around, including WWFCU. (You can check out our rates here.) So, shop around and see what rates are available and how they compare to your current rate. The lower the rate, the lower your monthly payment!

Credit Score

You should regularly check your credit score, especially if you’re actively working to improve it. You’re allowed one free credit report per year at If you haven’t checked out your score in a while, it might be time. 

Credit scores range from 300 to 850. While most of us would never hope to reach 850, you should have a goal of keeping it in the 700 to 800 range to get the best auto loan rates.  

A pointer when loan shopping … Be sure to check with financial institutions at around the same timeframe. That way, credit reporting agencies like ExperianTransUnion and Equifax will group your credit inquiries all together. This will limit the effect the inquiries will have on your credit score. 

Loan Terms

One major factor to keep in mind when refinancing your auto loan are the terms. If you’re one year into a four-year loan, you don’t want to refinance it for five years. While your monthly payments will go down, the amount of interest you’ll ultimately pay will increase. 

You’ll also want to remember that the older the car, the higher the rates. So, your brand-new SUV will come with higher interest rates once it’s a few years old. 


If you’ve decided that refinancing your loan is a good financial decision, there are a few things you’ll need: your most recent loan statement; your vehicle’s VIN, make, model and year; proof of income, which usually includes the last two to three paystubs. Then, stop by WWFCU and see what we can do for you!

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