What is Refinancing? – Harrisburg, PA Auto Financing

At PA Credit King, we help people get vehicle financing no matter what their credit. This means that if you get a loan with us even when your credit isn’t so great, you’ll nevertheless improve your credit by paying it down over time. Enter refinancing. You could come back to us later to pay off the old loan by securing a new one, and it could save you money in a variety of ways. From our inventory of new and used cars to our years of experience securing loans from a variety of lenders, PA Credit King gives you options.

When You Should Consider Refinancing in Harrisburg, PA

When you bought your car originally, your credit wasn’t top-notch. You had some tough times and made some tough decisions. You needed a car, and we helped you get behind the wheel, but the interest rate is just a bit too high for your liking. Since then, you have improved your credit, and your income, and you are back to stability. The car is still in great shape. Now you can come back to us and refinance. You’ll get the interest rate down. This means you will pay less back in interest while still paying off the principal, all while lowering the payment as well.

Preparing for Refinancing in Harrisburg, PA

The first thing to do to determine if it’s time to consider refinancing is to check your credit score. Higher credit scores tend to translate into lower interest rates and lowering your interest rate is your primary goal. A credit score above 700 is optimal, but it’s not impossible to refinance with a lower score. You’ll want to have important information ready. Driver’s license and insurance information are one. Proof of employment and pay is another. You’ll also want to gather information on your car and the terms of your current loan.

Other Factors for Refinancing in Harrisburg, PA

Aside from your income and credit history, the other factors we’ll consider are your car’s equity and your debt-to-income ratio. You got your credit up by keeping careful track of all these factors. Now you can press them into service to refinance. Equity just means that your car is still worth more than what you owe on it. If it is not worth more than what you owe, this may be another reason to refinance, so that’s something to consider. Debt-to-income ratio is how much you pay versus how much you bring in every month.

PA Credit King is Here to Help in Harrisburg, PA

This is just a basic overview. If you have any questions or concerns at all, call us up and we’ll guide you through the process. It’s what we’re here for. Paying off your old loan and securing terms for a new one doesn’t have to be hard. You’ll save yourself a lot of work by continuing to work with a name you already trust, so roll with the Pros.