1. Your credit rating improves The biggest factor determining your auto loan status is your credit score. When your lender builds a loan package, they pull a credit report as a central part of that process. That number determines your interest rate, whether you'll pay an insurance premium and what other fees your lender might charge.
If you didn't have much credit history when you purchased, refinancing can do you a world of good. Interest rates as high as 18% are common for new borrowers. Just a few months of solid payments may cut that rate in half.
2. Interest rates are lower than your original loan Refinancing loans are considered used car loans, and their rates are usually higher than new car loans. But depending on the market, the refi rates could still be more than a couple of points lower than your original loan. Keep in mind even a 2-point difference can make a huge impact over the life of a loan.
3. You need to change your monthly payment Your financial situation may have improved since you bought the car and you can now afford to pay more per month. You'll save money in the long term by doing just that. Shorter-term loans usually have lower interest rates and you'll pay off the overall balance on your car faster.
If money is tight, consider refinancing for a longer term. Although you'll pay more in interest, you'll reduce your monthly payment and save the money you need now. You may also be able to reduce the monthly payment if your credit score has improved, interest rates have dropped or if you're getting a better rate from another lender.
It's a great time to refi your auto loan with GICU!
Get 1% cash back* – up to $400 – to refinance your auto loan with GICU. Get a rate as low as 2.24% APR** with flexible terms, a variety of payment options and local service. 
