Proven strategies to pay-off your auto loan faster

Among other things, your FICO score influence the interest rate you have to pay on an auto loan. Without giving much thought to interest rate, we obtain auto loans at higher interest rates due to many factors and only time that we realize the importance of the high interest rate is when it comes to making the monthly payment. If you are faced with this, there are few options to get out of a high interest rate auto loan.water trampolines australia

Try and refinance your auto loan: Many credit unions offer favorable and affordable auto loan refinance interest rates. Key here is not to extend the term (payment period) of the loan but to lower the interest rate. Extending the term to lower the monthly payment will cost you more at the end.

Pay an extra payment(s) if possible: This helps to pay-off your auto loan few months early and save on interest. One easy strategy is to add few extra dollars to each monthly payment or to round-up your monthly payment. If you get a bonus or some other windfall, consider making an extra payment.

Whatever the strategy you use, do not miss any payments. That can lead to an interest rate hike costing you more money.

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