When it comes to car loans, it’s important to find a lender that understands your financial situation and can offer you the best options. This is especially true if you’re looking to refinance or make a principal-only payment. The good news is that there are several companies that offer these types of services. However, there are some differences to keep in mind.
Depending on your current credit situation, you may be able to refinance your Consumer Portfolio Services auto loan for a lower interest rate. You can save thousands of dollars over the course of the loan.
Refinance your car loan
Refinancing your auto loan is a great way to lower your monthly payments and get a better interest rate. It’s especially beneficial if your credit score has deteriorated. However, it’s important to note that there are several factors that play into whether you will qualify for refinancing.
One of the reasons that car shoppers refinance their loans is that they are overpaying for their cars. The market interest rates are significantly lower than the rate of their initial loans. With a refinancing, they can lower their monthly payments and pay off their loans much faster.
While some lenders will approve your refinance application when your car is new, others won’t consider it until after you’ve had your car for a couple of months. For this reason, it’s best to have your car at least six months old before deciding to refinance your loan.
Get a rate discount for enrolling in autopay
Autopay is a great way to ease the pain of missing a monthly payment. You can automate your payment by choosing to automatically deduct the sum from your bank account each month.
Automatic payments also lower fees associated with one-time payment methods. For example, if you miss a payment, you won’t get hit with a late fee, and you won’t receive a 30-day delinquency notice. This makes it a great option for people with irregular paydays or those who simply want to chip away at their weekly balance.
When you’re deciding on the best auto loan provider for your needs, you should look into consumer portfolio services. They offer a low rate, a great loan term, and personalized refinance terms. The rates are similar regardless of your location in the U.S., and you can even qualify for a loan with a modest credit history.
Make a principal-only payment
If you have high-interest debt like credit cards, then you should consider making a principal-only payment. This will help you get out of debt faster and save you money. However, you should always check with your lender first to ensure that you can make this type of payment.
Make sure to take the time to learn about your loan and what you need to do before making a principal-only payment. You may not be able to send extra money to your lender, but you can talk to them about your options.
Some lenders will let you make extra payments without penalty. Others will charge you a fee. There are even some lenders that will automatically apply any extra money you put toward the principal. But keep in mind that you can only use this method of repayment if you have enough cash to do so.
There are several pros and cons to making a principal-only payment. Besides saving you money, you can shorten the life of your loan and improve your overall credit score.