Bank of America is the second-largest banking institution in the United States.1 It saves clients an average of $60 per month on their auto loan payments through refinancing. Bank of America’s online, no-fee application takes minutes and most applicants get credit decisions in 60 seconds. Furthermore, Bank of America lets you refinance whether your existing loan is through Bank of America or another financial institution.
No Prepayment Penalties
Some lenders subject you to a prepayment penalty for paying off your loan early, but not Bank of America. If your current loan has a prepayment penalty, the amount you save by refinancing with Bank of America may be significantly more than the penalty. In that case, refinancing may still be a good idea.
Interest Rate Discounts
If the interest rate you qualify for is significantly lower than your current loan rate, it may be the right time to refinance. Bank of America sweetens the deal for Bank of America Preferred Rewards or Preferred Rewards for Wealth Management customers, who qualify for interest rate discounts of up to 0.50 percent.
Bank of America’s Preferred Rewards program is one of the reasons we picked it as one of the best auto loans for new cars. Membership is available in all 50 states, including Washington, D.C.
One-Minute Approval Process
Bank of America’s easy and fast process requires you to provide the following information online for the loan approval in 60 seconds:
- Car year
- Date of birth
- Email address
- Employer name
- Employment status
- Housing status
- Loan amount
- Loan term (48, 60 or 72 months)
- Loan type
- Monthly housing payment
- Phone number
- Social Security number
- Time employed
- U.S. citizenship status
- Vehicle identification number (VIN)
- Yearly income
After approval, you’ll have 30 days to think about the offered amount without losing the interest rate, which is locked in at the time of your offer.
WHEN TO REFINANCE A CAR LOAN:
After a new car purchase
, you should wait at least six months to a year before refinancing to give your credit report and score time to recover and build up a payment history.2
To see a benefit from refinancing, you should have at least two years remaining on your loan.3