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Department of Education Grants

3 Reasons It’s Time To Refinance Your Car

By Department of Education Grants

Time to refinance your car…or maybe it isn’t? Check out our three reasons it’s time to refinance your car below:

1. Your credit score has improved – When you first bought your car you had no credit history or you had some eye opening issues on your credit report, but now everything is looking good. Since your credit is healthy now, you may qualify for a lower interest rate.

2. You’re in financial trouble – If you’re having financial issues it is a good time to try and reduce your payments. It’s possible to increase the loan term, that way monthly payments are lowered.

3. Trying to take advantage of lower interest rates – If your car is a couple years old, it could be a good idea to get it refinanced since the rates have lowered. This will decrease the amount of interest you have to pay on the loan.

Image via Grandview Insurance Agency.

How Accidents Affect Credit Scores

By Department of Education Grants

If you’ve been in a car accident, you might be wondering how it could affect your credit score. Car accidents can cost up to $44 billion in medical care and lost work, but that doesn’t include property damage, injuries, and other more permanent side effects.

While car accidents don’t directly affect your credit score since they aren’t reported to any credit bureaus, you can still see a dip in your score if you incur massive debts from your accident that you’re having trouble paying off. You would need to keep paying any minimum payments toward your debts, as you do with credit cards and loans, so as not to see a drop in your score. Other than that, though, it won’t directly impact your score.

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