How does car refinancing work?

How does the car refinancing process work? I have a car that I bought three years ago when I had poor credit. Now that my credit score is much higher, I want to refinance my vehicle.

Answer provided by
Eric Schad
Answered on Jul 13, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Refinancing your car is almost identical to getting your original car loan.
During refinance, you’ll have to:
  • provide proof of income
  • provide proof of residency
  • run your credit score with the lender
  • verify your income
  • check your debt-to-income ratio
If you qualify for refinancing, they’ll offer a rate and loan term that you can accept or decline.
Just as you would with car insurance, make sure to check with different lenders to get the best rate available for your refinancing.”

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