How to Stop Paying High Interest on a Car

If you're currently paying high interest on your vehicle's loan, consider refinancing with another lender if your credit has improved. If your credit has not improved, you might need to use a cosigner to refinance. Before applying for another loan, obtain a copy of your credit report to determine which accounts are hindering your credit score. Try to fix your credit before applying for an auto loan. If you've paid your current loan on time, you might have already established better credit.

Instructions

1

Get a copy of your credit report from all three credit bureaus and ensure all payment information is accurate. Correct any errors you find. Locate instructions for correcting inaccurate reporting on the credit bureau websites.

2

Pay off any past due accounts. Contact your creditors, make payments and obtain receipts. Hold on to the receipts to ensure proper updating of your credit history and wait at least 30 days after paying off accounts to apply for a new loan.

3

Call your current lender to obtain your payoff, which is the amount you'll apply for with another lender. Check auto loan interest rates for used cars with local or national lenders. Once you find the best interest rate and loan fees, apply either online, on the phone or in person if the lender is local.

4

Once you are approved, review your interest rate, term, monthly payment and any down payment requirements to determine if the loan is worthwhile. If your interest rate isn't lower, apply to another lender.

5

Sign your loan contracts with your new lender. Supply proof of full coverage insurance to obtain your loan check. Provide your old lender with the payoff check to complete the refinance transaction.