Car Loan Refinance

Car Loan Refinance

Car loan refinance – what is it, exactly?

Many of us have considered refinancing a car loan at least once. However, many of us don’t have the full picture regarding what it means for our credit score. Is it a good choice to make if you’re still paying off your car loan? Can you qualify for one with a cosigner? What are the requirements for a refinance loan?

Read on for our take on the topic.

Can I refinance a car loan with a cosigner?

Refinancing car loans with a cosigner is possible. It may even be ideal in some cases, especially if your cosigner has an equal or stronger credit rating than yours. The criteria for a car loan refinance with a cosigner varies between auto refinance companies, but some general documentary requirements may be asked for during the application process.

• Proof of identification, such as government-issued ID cards or passports
• Proof of residence, such as utility bills or vehicle registration
• Proof of income or financial capacities, such as payslips or bank statements
• Proof of ownership for pledged assets or collateral
• Proof of existing loans or other credit obligations, such as car loan consolidation

Any, all, or a combination of the above may be requested by credit providers from applicants to determine the best auto loan refinance terms and conditions that they may offer a borrower.

At SocietyOne, our basic criteria are as follows.

• Applicants must be at least eighteen years old.
• Applicants must be Australian citizens or permanent residents.
• Applicants must be earning at least $30,000 p.a.
• Good credit scores are preferred.

Is it possible to refinance a car after repossession?

If you’ve received a notice from your credit provider that they’ve initiated repossession for your car, you may not be able to refinance your car.

If you’re planning on refinancing a vehicle due to financial hardship, we’d suggest speaking to your credit provider first and discussing loan relief options first. Refinancing a car loan may lead to further financial trauma if you’re already having difficulty keeping up with your monthly repayments.

On the other hand, if your credit history has been steady and you want to compare car refinance rates against your current loan, a car loan refinance may cost you less in interest in the long run. It may also bolster your credit score if you plan on letting your loan mature or if your loan is transformed from an intermediate loan to a long-term one.

Saving on loan interest the SocietyOne way

Another way of saving on interest on car loan refinance is by choosing a loan with fixed rates from the start.

At SocietyOne, all of our loan products have fixed interest rates that are comparatively lower than major bank lending or financing. Both our secured and unsecured loans are also free of monthly fees and early repayment fees, so your monthly repayments are fixed throughout your loan.

Our unsecured loans have a floor of $5,000 and a ceiling of $50,000, payable within two years, three years, or five years. Meanwhile, our secured loans have a higher ceiling of $70,000 and an exclusive seven-year option for more flexibility with repayment schedules.

Interested borrowers can complete the application process online, either through our website or our mobile app. For enquiries regarding eligibility or document requirements, please contact us via email (customer.service@societyone.com.au) or phone call (1300 144 221 or 02 8397 9700). Our phone support is active Mondays to Fridays, from 9.00 a.m. to 5.00 p.m. AEDT.

How many times can I refinance my car?

Ideally, refinancing an unsecured car loan once should be more than enough.

It’s important to consider that refinancing a car loan is essentially replacing it with a new one.

When you refinance a car loan, the new terms may be greatly different from what you’re used to. A car loan refinance may also affect the overall interest, fees, or repayment schedules that you have to fulfil.

Practice due diligence before committing to a car loan refinance, and make sure you’ve noted any differences between your old loan and your car refinance loan. This will help with your credit management, especially with planning advance repayments.

Keeping your credit score in tip-top shape

Maintaining an excellent credit score isn’t just for personal credit like car loans – it’s also a strong bargaining tool for lifetime opportunities like property acquisitions and business ventures. If you’re planning on buying a home or starting a business, a strong credit profile gives you an advantage in getting the property or credit line you need.

Our Credit Score tool can be helpful for managing your credit profile.

Through our credit reporting partner Experian, the Credit Score tool offers members free previews of their credit score and history without any fees. Members also gain unlimited access to powerful insights and best practices analyses that will help in identifying problem areas in your credit profile. Interested clients only need a registered SocietyOne user account; while logged in, look for the ‘Get My Score’ button. Click it and follow the steps, and you’re all set on the path to a stronger credit score.

We also have a club that provides valuable information about managing credit responsibly. It’s obligation-free – you’re not required to commit to a car loan refinance or other credit products to sign up. SocietyOne is a registered and licenced online loaning platform that has been offering multi-awarded credit solutions to thousands of clients in the country.

Car loan refinance is just one of the many credit offerings we have. We’ve expanded our unsecured and guarantor personal loans for vehicles to include green loans (hybrid or electric cars, solar panels, and similar eco-friendly properties) and motorbike loans. We offer opportunities to invest in loans through consumer lending, and we also accept brokerage applications from interested outlets.

Experience effective credit products and services at SocietyOne. Check your rate with us today!