6 things to know when refinancing a car loan

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You love your car - but not enough to clean out your bank account each month to make your auto loan payment. Depending on your financial situation, refinancing your auto loan could reduce your monthly payments, offer you different payment options to better fit your life, and even give you a month off from making payments. And you thought you loved your car before.

Here are six things to know before deciding to refinance your car loan.

1. Better credit means better rates

Maybe you've paid off some student loans since you first bought your car. Or maybe you've been working hard to up your credit score in other ways. If your credit score is significantly better than it used to be, refinancing could mean lower interest rates.

2. You can play around with an auto refinance calculator first

You don't have to take any official action to find out whether refinancing your auto loan will save you money. Use an easy auto loan refinance calculator to estimate your savings. Then you can decide whether applying is right for you.

3. Don't sweat the transaction fees

If you've ever heard about all the fees associated with refinancing a home, you might assume auto loan refinancing would be the same. Good news: It's not. Auto refinance loans typically have nominal fees, which are far outweighed by the potential interest savings for many borrowers.

4. Sometimes discounts are available

Some lenders offer lower rates if you use other services of theirs. Wells Fargo, for example, offers some customers rate discounts with qualifying consumer checking accounts.

5. You can have a co-applicant

If you're working to build or establish your credit or have a lower credit score, you may qualify for better rates if you have a co-applicant. This might be a parent or friend who takes out the refinance loan with you. When considering a co-applicant, know that this person may maintain partial ownership of your vehicle because of it.

6. It's fast

Don't apply until you're ready to hit the gas. Auto loan refinancing can happen super fast. In fact, if you apply online, you may get a response in as soon as 15 minutes and have your funding available the same day. All you need to apply is information you're likely to have on hand about your personal identification, employment, vehicle and current auto loan.

Lower your monthly payment, your rate or both during the Great Rate Event. Eligible Wells Fargo customers can get a double discount interest rate.

This post is sponsored by Wells Fargo.

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