What to know before refinancing your Auto Loan

Refinancing your Auto Loan can be a smart financial move. By refinancing, you could potentially lower your interest rate, reduce your monthly payment and even get your loan paid off faster. 

While refinancing can help you save money, it's important to evaluate your financial goals and current situation to ensure you're getting the best terms for your needs. Before you get started, take the time to review this checklist to see if refinancing is right for you. 

1. Check your credit - Your credit score is a big factor in qualifying for a new loan, and a higher score will help you secure a better interest rate. You can easily monitor your credit with our Savvy Money service, available through Online & Mobile Banking*. With Savvy Money, you can view your full credit report, access credit score education resources and get email alerts when changes occur to your credit profile. The best part? It's completely free and accessing it is simple:
   1. Log into Online and Mobile Banking*
   2. Select the Main Menu
   3. Select Credit Score & Report
2. Review loan status - Lenders look at your payment history to assess your reliability. Make sure your current auto loan is in good standing with on-time payments. You'll also want to check your current interest rate to verify rates haven't increased since you first financed. 
3. Know your vehicles value - Your car's age, mileage, and its loan-to-value (LTV) ratio all matter. The LTV ratio compares your loan balance to your car's current market value. A lower LTV helps you qualify for better loan terms. According to the Auto Credit Express¹, the ideal Auto Loan LTV is 80% or lower to get the best rates. A great resource to check your cars value is Kelly Blue Book. To calculate your LTV, divide your current loan amount by your car's appraised value, then multiply by 100. 
4. Shop lenders - It's smart to compare different lender's rates to find the most competitive offer, and to ensure you'll benefit from changing your auto loan terms. We make it easy with our online tools! Try our Compare Two Auto Loans calculator to see what you could be saving with Abound. 

Ready to explore your options? Our knowledgable team is here to help you!

Abound offers:

• Flexible Auto Repayment options
• An easy online application
• Fast approvals
• Automatic Auto Loan payments can be scheduled through Online & Mobile Banking*

Ready to turn the key to better savings? Apply online or visit your local branch today!

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