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Refinance Your Auto Loan in Pennsylvania

Most Pennsylvania residents include auto loans in their monthly spending. Currently, they are spending more than $730 per month on a new car loan and $530 per month on a used car, as reported in the 2024 State of the Automotive Finance Market report from Experian.

If your loan seems excessively costly or your interest rate doesn’t please you, consider refinancing to change it. Many drivers across Pennsylvania are spending extra cash on car insurance. You may lower your monthly cost by choosing a different rate or loan term.

At Little Giant Federal Credit Union, we help our local members by making buying a car more affordable. Our goal is to ensure you can decide on a refinance car loan in PA, no matter how long you’ve been paying on your current loan.

What Does It Mean to Refinance Your Auto Loan?

Refinancing your auto loan means replacing your current loan with a new one. The new loan typically comes with more favorable terms. That might mean a lower interest rate, a different loan length, or both.

When you refinance, the new lender pays off your old loan. Then, you make payments on the new loan instead. The goal is to make your monthly payments more affordable or to save money over time. It doesn’t mean getting a new car. It’s just a smarter way to pay for the one you already have.

Top Reasons to Consider Auto Loan Refinancing in PA

There are three five reasons our members at Little Giant FCU decide to refinance their auto loans.

1. Get a lower interest rate.

If your loan interest rates or credit score have gotten better, you could be approved for a better loan rate than before. A drop in your interest rate of just one percentage point can result in big savings during the loan period.

2. Make Payments Roughly the Same

Refinancing is one way to reduce your car payments in Pennsylvania if cash is tight by extending the loan. This can save you cash every month.

3. Go for a longer or shorter loan repayment term.

Want to reduce the time it takes to pay off your car? If you need to lower your monthly payment, choose a loan with a longer repayment period. By refinancing, you can adjust the plan to suit your needs better.

4. Bring a Co-Signer

If you obtained your original loan with a co-signer but no longer need one, refinancing can help you remove that person from the loan.

5. Switch Lenders

Want to find a different lender? If you refinance with Little Giant FCU, you will receive both better service and better rates.

When Refinancing Makes Sense?

Refinancing is not for everyone. But here are some situations where it may be a smart move:

  • Your credit score has improved. If you’ve been making on-time payments and your score has gone up, you could qualify for a better rate.
  • Rates are lower now. If the market rates have dropped since you got your loan, refinancing might save you money.
  • Your financial situation has changed. If you lost a job, had a baby, or had another major change in income or expenses, adjusting your loan can help.
  • You’re not happy with your lender. Bigger lenders can have hidden fees, long wait times, and poor service. A credit union refinance may offer more peace of mind.

Why Choose a Credit Union to Refinance?

We serve our members at Little Giant FCU because helping them is more important than making income. Here are several points that show refinancing through a credit union is sensible:

  • We are a not-for-profit organization, and credit unions often offer members lower rates than banks.
  • Our members are important to us, and we handle every detail with personal service.
  • We evaluate your loan personally, and you’ll get your loan fast.
  • Our managers plan with you, taking into account your needs and goals rather than just checking your credit.

When you choose credit union refinancing with us, you won’t be just another member. You are part of your community’s financial family who enjoys our loan products.

How to Get Started with Little Giant FCU

Refinancing is easy with Little Giant FCU. Here’s how to get started:

Step 1: Review Your Current Loan

Know your current interest rate, monthly payment, and remaining balance.

Step 2: Check Your Credit

A better credit score can qualify you for better terms. You can check your credit for free once a year at AnnualCreditReport.com.

Step 3: Apply to Refinance

You can apply online, in person, or by phone. Our team will guide you through the options and help you find the best fit for your budget.

Step 4: Enjoy the Savings

Once approved, your new loan pays off the old one. You start making payments to Little Giant FCU, and you may see a lower car payment in Pennsylvania right away.

FAQs About Auto Loan Refinancing

Is there a cost to refinance?

Sometimes, there are small fees, but many of our members find that the savings more than offset the cost. Drop us a line, and we’ll help you understand what to expect.

Will refinancing hurt my credit?

It may cause a slight dip when applied, but it’s usually temporary. In the long run, refinancing can help if it makes payments easier to manage.

How long does the process take?

It usually takes just a few days, especially if you have all your paperwork ready.

Can I refinance if I owe more than the car is worth?

It depends on your specific situation, but we may still be able to assist you. Please contact us, and we’ll take a look.