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- 1). Look at your credit score and dispute or correct any inaccuracies or blemishes. The higher your score, the better refinancing package lenders can offer you. Get written verification of your credit score from one of the three major credit bureaus: TransUnion, Experian and Equifax. You may request one free copy of your credit score per year from each of these agencies.
- 2). Reduce your debt-to-income ratio, if possible, and stay at your place of employment. Lenders consider your ability to repay your loan and a consistent employment history in determining whether to approve your refinancing application.
- 3). Call or visit other lending agencies. Obtain written quotes for interest rates and monthly payments.
- 4). Make an appointment to see your lender. Bring documentation regarding your current loan agreement, as well as your written quotes. Use the quotes to see what refinancing options the lender can provide you.
- 5). Apply for refinancing. Your lender should be able to convey your likelihood of approval. Do not forget there are often fees for canceling your old contract. Ask your lender about these fees and make sure the benefits of refinancing outweigh these costs.
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