Car Loan Frequently Asked Questions

• When should I consider refinancing my car?

  There are a number of reasons you might consider refinancing your auto loan. Since interest rates are based on creditworthiness, if your credit score or credit history have improved, you might want to try to secure a loan with a more favorable APR (annual percentage rate).

  Other reasons you might want to refinance include a budgetary need or desire to change terms in order to get a lower monthly payment, there has been a drop in interest rates from when you initially borrowed, or your car is worth more than your remaining loan balance.

• How does interest on my auto loan work?

  Most auto loans have interest that accrues daily, starting from the day you sign the loan until the day you pay it off. The total amount of interest you pay is based on your loan balance, interest rate, and the number of days in the year. A part of each monthly car payment applies to the principle, and another part of it applies to the interest.

• How quickly does approval happen?

  We have a quick and easy online application and offer electronic document signing, so you don’t need to come into one of our branches. Once you apply to refinance, if you’re approved, the approval should happen within 1 to 2 business days.

• How do I get the best auto loan rate?

  To get the best auto loan rate, you’ll want to make sure your credit is in tip-top shape before you apply.

  Also, the shorter your loan term, the lower your interest rate will generally be. Since we’re a member-owned not-for-profit, we have exceptionally low rates- usually lower than the big banks have.

  If your credit is fair and you’re working to improve it, talk to us about whether refinancing is right for you. It might be that while you won’t get the very best rate, you’ll still get a good one with us that is better than your existing one.

• What if I want to refinance but I need to improve my credit first?

  As a credit union, we offer financial products and education resources designed to help you improve your credit, become more financially literate, and secure a better future.

  Whether it’s working to build your credit with our Visa Share Secured Credit Card or helping set and manage a budget with our financial educator, Lauren Polen, we can help!