Is refinancing your car ever the wrong move to make?

"I'm thinking about refinancing my car, as I currently have an interest rate of 10%. I think I can get a rate closer to 5% or less.

However, I've read on the Internet that refinancing can hurt your credit or actually make your payments higher. Is refinancing ever the wrong move to make?"

Answer
“I’m not sure where you’ve read that refinancing will make your payments higher, but that’s not true. You wouldn’t refinance if your offered interest rate was higher than your current interest rate.
As far as your credit score goes, it might take a small initial hit due to the hard inquiry made by a prospective lender, but it’s nothing to worry about.
If you can refinance at a lower rate, you absolutely, positively should. And don’t believe everything you read on the Internet.”
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Eric Schad
Answered on Jun 02, 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.
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