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6 Reasons Refinancing Your Car Make Good Financial Sense

6 Reasons Refinancing Your Car Make Good Financial Sense
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When you’ve had a car for a long time, it’s almost expected that you’ll keep making the same payments you always did. Refinancing is a process that is usually associated with houses. However, refinancing your car could save you hundreds each month. It’s possible to refinance with the original loan provider but that doesn’t mean you can’t shop around before making that choice. It’s important to remember that refinancing, for homes or cars, isn’t for everyone. Before you actively seek this option, be sure to determine the value of your loan (how much you have left) and the value of your car. Here are six reasons why refinancing your car is a smart decision for you and your wallet.

1. The length of your loan is longer than five years

If your original loan is set to last longer than five years, chances are that you’ll actually be paying more interest than the principal. Refinancing may be able to reduce the length of your loan so that you pay a value closer to what you signed up for. And if it’s possible or helpful for your finances, you can refinance your loan for an even longer term to get lower payments.

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2. Your credit score has risen

Depending on what your score was when you got the car, your interest terms may not have been the best. As with most credit-related purchases, a higher credit score will get you a better interest rate. This improvement could be the difference between a few hundreds of dollars each month. You can check your credit report before applying for the refinance to see whether it’ll be worth it or not.

3. Car interest rates have fallen

As with the economy, interest rates can get really high or really low. For this, timing will be important on when you choose to refinance. If you’re unsure of what the rates look like, you can research and get the information for your local area as well as cities nationwide. This will help your decision. You can also find out the current trends so you’ll know whether to wait a while longer or act immediately.

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4. You didn’t get the lowest rate possible

Credit scores and ratings are not unchanging or permanent in any way. There are various factors that will determine whether or not your score will gain or lose points. Maybe your credit was shaky or new when you got the car. And if not that, it’s possible the economic conditions weren’t really favorable. Even worse, if you bought a new car and got talked into what sounded like a great deal by a talented salesperson, it’s worth looking into your loan terms. Time, interest rates and credit scores change. So that means you can also change the conditions of your loan to help get the most of your money.

5. You financed with the dealer where you bought the car

The rates being offered by dealers are typically higher so that they get a larger profit from each sale. So probably what they offered was a higher rate than what other lenders would give you for the same price and vehicle. If that’s the case, you can definitely seek other lenders to get a lower rate. Various banks and credit unions may offer lower rates. However, there might be a membership required before you can take advantage of their deals. Check with your own financial institution and see what they’re willing to offer you.

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6. You need to lower your monthly payments

This is one of the most common reasons why it might be time to refinance your loan. Maybe your financial situation has changed for the worse and it’s just hard to keep paying for your car. Whether it’s an employment issue or the stress of additional bills, a refinanced loan may help your monthly costs. Financial institutions are great places to seek advice on how and where to cut costs and you might be driving one. If you need to rearrange your monthly payment plan without pushing your budget to the limits, refinancing your car might be one of your best options. By using this process, you be able to reduce some of your monthly financial pressures.

Featured photo credit: 1860391 via pixabay.com

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Sasha Brown

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Last Updated on July 12, 2021

100 Incredible Life Hacks That Make Life So Much Easier

100 Incredible Life Hacks That Make Life So Much Easier
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Want to learn some quick and easy life hacks that are easy to do, low cost and saves you time?

By tweaking little things in your daily life, it can make your life much more convenient!

Here’re 100 of the most practical life hacks so you can just pick up any of them right away!

83 tie a small piece of bright colored fabric

    84 write random letter

      85 use a rubberband

        86 dorm smell bad

          87 lean your phone on your sunglassess

            89 how to waterproof your shoes

              90 take a picture of the name card

                91 iron inside out

                  92 old newspaper

                    93 tumble try shoes

                      keep a card like this

                        SONY DSC

                          94 soap bar

                            95 make a hole

                              96 drop the battery

                                97 use a coozie

                                  98 when taking a picture

                                    use a clean dust pan

                                      try a pants hanger

                                        use your cellphone light

                                          use a spring from an old pen

                                            quick and easy iphone speaker

                                              user binder clips

                                                wrap a wet paper towel around your beverage

                                                  put pancake mix in a ketchup bottle

                                                    clean out an old lotion bottle for your beach

                                                      use a muffin tin to serve condiments at a bbq

                                                        doritos are great for kindling

                                                          use nail polish to identify different keys

                                                            use a hanging shoe rack to store cleaning supplies

                                                              freeze grapes to chill white wine without

                                                                use paper clips to organize your cables

                                                                  almost finished your jar of nutella

                                                                    sick of having a box full of tangled

                                                                      unroll the rim to increase the capacity

                                                                        cut open toilet paper rolls and use as a cuff

                                                                          remove the stem from strawberries

                                                                            turn an old bottle into a simple little cord holder

                                                                              for iced coffee and iced cappuccino, use frozen coffee cubes

                                                                                how to fold a fitted bed sheet

                                                                                  tired of snoozing past your alarm

                                                                                    place a rubber band around an open paint can to wipe your brush on

                                                                                      ut a wooden spoon across a boiling pot

                                                                                        use bread clips to save flip-flops

                                                                                          take pictures of friends holding items

                                                                                            how i always know which headphone is the left one

                                                                                              put a stocking over the end of a vacuum

                                                                                                How to make sure you drink enough water

                                                                                                  user a can opener to open blister

                                                                                                    good sandwich guide

                                                                                                      turn your muffin pans upside down

                                                                                                        50 pounds of groceries and living on the 5th floor

                                                                                                          the right way to make a blt

                                                                                                            add one teaspoon of baking soda

                                                                                                              38

                                                                                                                hair straighteners equals to collar irons

                                                                                                                  stack your clothes vertically to see them all

                                                                                                                    the right way to make cookies in the summer

                                                                                                                      how to clean a blender

                                                                                                                        the right way to eat a popsicle

                                                                                                                          use bread clips to label and organize power cords

                                                                                                                            to get the built up residue off of your shower head

                                                                                                                              user a hair clip to orgainize long wires

                                                                                                                                a frozen saturated sponge in a bag

                                                                                                                                  rub stuck zipper teeth with a graphite pencil

                                                                                                                                    use a soda pop tab

                                                                                                                                      50

                                                                                                                                        51 How to multiply large numbers in your head.

                                                                                                                                          52 How to open a bottle if you dont have a corkscrew.

                                                                                                                                            rub a walnut on damaged wooden furniture

                                                                                                                                              kids fall out of bed

                                                                                                                                                use toothpaste to clear up hazy car

                                                                                                                                                  58

                                                                                                                                                    59 keep pizza out while driving home

                                                                                                                                                      60 put your straw through the tab to keep it from rising

                                                                                                                                                        hold oreos with a fork so your fingers

                                                                                                                                                          Never lose your remotes again

                                                                                                                                                            hiding your emergency money

                                                                                                                                                              use a bread tab to hold your spot on a roll

                                                                                                                                                                if you are at a hotel and run out of chargers

                                                                                                                                                                  keep a square of cardboard in a ziplock bag

                                                                                                                                                                    If you need to pee or smoke at a bar

                                                                                                                                                                      drill holes in the bottom of your garbage

                                                                                                                                                                        use an accented letter as your passcode

                                                                                                                                                                          use a squeeze ketchup bottle top with your shopvac

                                                                                                                                                                            do something unusual when locking the door

                                                                                                                                                                              when heating leftovers space out a circle in the middle

                                                                                                                                                                                dont burn yourself in those hard to reach candles

                                                                                                                                                                                  put a small amount of water in a glass when you microwave your pizza

                                                                                                                                                                                    75 use a piece of paper to organize

                                                                                                                                                                                      use half a pool noodle

                                                                                                                                                                                        pencil case to store cables

                                                                                                                                                                                          78 clothespin to hold nail

                                                                                                                                                                                            79 make blts

                                                                                                                                                                                              80 take a picture of your fridge

                                                                                                                                                                                                81 fill plastic water bottles

                                                                                                                                                                                                  82 right ways to eat chips

                                                                                                                                                                                                    99 if your plug keeps failing

                                                                                                                                                                                                      100 put the banana on the wire

                                                                                                                                                                                                        88 before you throw away a post it

                                                                                                                                                                                                          Source: Reddit LifeProTips

                                                                                                                                                                                                          There you go, 100 awesome life hacks that you can try right now to make your life a lot easier!

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