When should I cash-out refinance my car loan?

I've been thinking of cash-out refinancing for a few weeks. I'm just wondering if it's a good time to go through with it.

Answer
“A cash-out refinance is when you refinance your loan while also taking out an additional amount of cash against the equity on your loan. Sounds great, right? If you need some extra money for an emergency fund, future maintenance on your car, or upgrades to your vehicle, it’s not a bad choice.
Just keep in mind that you’ll also want to make sure you’re getting an equal or better interest rate than with the car loan you already have. And don’t forget — you may get a new hard inquiry on your credit report, which will lower your score by a few points for the next 12 to 24 months. “
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Eric Schad
Answered on Apr 07, 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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