Feeling Stuck in Your Car Loan?

Special article brought to you by Wasatch Peaks Credit Union

While 2020 isn’t turning out the way that any of us expected, it’s important to still look for ways to celebrate. This year, Wasatch Peaks Credit Union is excited to celebrate our 90-year anniversary! We have special offers available throughout the year, including getting $90 cash back for every $9,090 refinanced on an auto loan with Wasatch Peaks.*

It’s a great time to buy a new car, but it’s also a great time to refinance your vehicle. Refinancing can lead to a lower monthly payment, shorter payment term, or both! Here are some common life changes that may mean it’s an especially good time to refinance your vehicle:

1 – Your credit rating improved – The biggest factor determining your auto loan status is your credit score. A credit report is an important part of the loan process and determines your interest rate, whether you’ll pay an insurance premium, and what other fees your lender might charge.

If you didn’t have much credit history when you purchased, chances are you had a much higher interest rate as is common for new borrowers. But just a few months of solid payments can cut that rate down, as the months of steady repayment can help boost your credit score.

2 – You didn’t shop around initially – Many people feel railroaded throughout the car-buying process. They choose a car, and then are told the price, the monthly payment, and everything else. Often, it may feel as though the lender for your car loan is predetermined.

Dealers usually have a smaller range of lenders with whom they exclusively work, and those lenders have limited exposure to competition, so they can charge higher fees and rates. If you’re looking to refinance, now is the time to do some comparison shopping. Dealer rates can be 1 to 1.5% higher than smaller lenders, like credit unions.

3 – You need to change your monthly payment – Your financial situation may have improved since you bought the car and you can now afford to pay more per month. You’ll save money in the long term by doing just that. Shorter-term loans usually have lower interest rates, and you’ll pay off the overall balance on your car faster.

If money is tight, consider refinancing for a longer term. Although you’ll pay more in interest, you’ll reduce your monthly payment and save the money you need now. You may also be able to reduce the monthly payment if your credit score has improved or interest rates have dropped.

Wasatch Peaks is here for you. We are grateful for our members and our 90 years of helping members reach their peak. To get started and learn more about our loans, contact our specialists at 801-614-7959 or visit your local Wasatch Peaks branch.


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