The current economic climate is putting pressure on household budgets, with rising inflation, fluctuating interest rates, and unpredictable fuel costs. If you’re feeling the pinch, refinancing your auto loan with Redstone Federal Credit Union (Redstone FCU) could be a game-changer. Lowering your monthly payments, reducing your interest rate, or even shortening your loan term can free up cash for other essentials—or even help you pay off your car faster.

Here’s everything you need to know about refinancing your auto loan with Redstone FCU and why now might be the perfect time to make the switch.

Why Refinance Your Auto Loan?

1. Lower Interest Rates Mean Big Savings

Interest rates have been volatile, but if you secured your original auto loan when rates were higher, refinancing could slash your payments. Even a 1% reduction can save hundreds—or even thousands—over the life of your loan.

2. Improve Your Monthly Cash Flow

With inflation driving up the cost of groceries, housing, and utilities, reducing your car payment can provide much-needed breathing room. Refinancing to a longer term (if necessary) can lower monthly payments, while refinancing to a shorter term can help you build equity faster.

3. Remove a Cosigner or Improve Loan Terms

If your credit score has improved since you first took out your auto loan, refinancing could help you remove a cosigner or secure better terms. Redstone FCU offers competitive rates for borrowers with strong credit.

4. Switch from a High-Interest Lender

Dealership financing often comes with higher interest rates. If you financed through a dealership or a subprime lender, refinancing with a credit union like Redstone FCU could mean significant savings.

How to Refinance Your Auto Loan with Redstone FCU

Step 1: Check Your Current Loan Details

Before applying, review:
- Your current interest rate and remaining balance
- The loan term and monthly payment
- Any prepayment penalties (some lenders charge fees for paying off a loan early)

Step 2: Check Your Credit Score

Your credit score plays a major role in securing the best refinance rates. Redstone FCU typically offers the most competitive rates to borrowers with:
- Good (670-739) to Excellent (740+) credit
- A stable income and low debt-to-income ratio

If your credit has improved since your original loan, you’re in a great position to refinance.

Step 3: Gather Necessary Documents

To streamline the process, have these ready:
- Proof of income (pay stubs, tax returns)
- Current auto loan statement
- Vehicle information (VIN, mileage, insurance details)
- Driver’s license and Social Security number

Step 4: Apply Online or In-Person

Redstone FCU makes refinancing simple:
- Online application: Fill out a quick form on their website.
- Phone or branch visit: Speak with a loan specialist for personalized assistance.

Step 5: Review and Accept Your New Loan Terms

Once approved, you’ll receive:
- New interest rate and monthly payment
- Loan term options (extend or shorten as needed)
- Final payoff amount (Redstone FCU will handle paying off your old lender)

Step 6: Enjoy Your Refinanced Auto Loan!

After signing the paperwork, your new loan terms take effect. Set up automatic payments to avoid missed due dates and maximize savings.

Redstone FCU’s Auto Refinance Benefits

Competitive Rates

As a not-for-profit credit union, Redstone FCU often offers lower rates than traditional banks.

Flexible Terms

Choose a loan term that fits your budget—whether you want lower payments or a faster payoff.

No Hidden Fees

Unlike some lenders, Redstone FCU doesn’t charge application fees or prepayment penalties.

Member-Focused Service

Credit unions prioritize member satisfaction, meaning you’ll get personalized support throughout the refinancing process.

When Refinancing Might Not Be the Best Choice

While refinancing can be a smart financial move, it’s not always the right choice. Consider these scenarios:

1. Your Car’s Value is Less Than What You Owe

If you’re upside-down on your loan (owe more than the car’s worth), refinancing may be difficult unless you can cover the difference.

2. You’re Close to Paying Off the Loan

If you only have a year or two left, refinancing might not save much—especially if fees are involved.

3. Your Credit Score Has Dropped

If your credit has worsened, you may not qualify for a better rate. In this case, improving your credit first could lead to better refinancing options later.

Final Thoughts: Is Now the Right Time?

With economic uncertainty affecting millions, securing a lower auto loan rate can provide stability. If you’re looking to reduce monthly expenses or pay off your car sooner, refinancing with Redstone FCU is a smart strategy.

Take advantage of today’s lending landscape—explore your refinancing options and put more money back in your pocket.