Have you seen all the promotions about low interest rates on car loans?  It should make you wonder, are these rates lower than what my current auto loan interest rate is? Should I refinance?   Find your auto loan papers and see what interest rate you were charged. Then compare it to the current interest rates.  If the current rates are lower, there is a good chance you can refinance for lower payments.  You need to be prepared when auto refinancing.  Here is how to refinance your auto loan.

• Find out what your credit score is.  You can do this for free by going on the internet.  The higher your credit score, the better position you will be in to negotiate a low interest rate and approval on your loan
• If your credit score is below 680, you need to obtain a copy of your credit report.  Review this report to see if any of your credit history has been inaccurately reported.  If this is the case, call the Credit Bureau to straighten this out.  If you can take care of this before applying for a loan, it will look better.
• To improve your credit score, you can pay down your debt.  The more debt you have, the less money is available for you to pay bills. This debt-to-income ratio is what banks look at when refinancing.  Sometimes it is worth paying down your current debt before obtaining refinancing.  You will look better to the lender.
• Do research for the best interest rates.  Each lender is different which is why you need to shop around for the best rates and terms.  Check out the Loanstore.com.

Lastly, you need to ask yourself, why you are looking for auto refinance . Is it to lower your car payments? Maybe with lower interest rates, you can keep your same payments but shorten the length of the payments.  This may allow you to make another major purchase earlier than expected.  Or you might need extra cash and have equity in your car that you can borrow against.
Whatever reasons you have, you always need to be prepared when applying for a loan.  It is a good time to step back and really look at your finances.  Your financial future is important, so always take care of it!  Keep your credit score up and your debts down, then obtaining credit will never be a problem.