Are you looking to save money on your auto loan? If you have a loan with Crescent Bank & Trust, you may be paying high interest rates. But don’t worry, there are ways to save thousands of dollars on your Crescent Bank & Trust auto loan. In this article, we will explore different strategies and options to help you lower your monthly payments and reduce the overall cost of your loan.
Background on Crescent Bank & Trust
Before diving into the details, let’s take a moment to understand the background of Crescent Bank & Trust. The company was established in 1991 when a group of investors led by Gary Soloman Sr. and Fred Morgan III purchased the assets of Columbia Homestead in New Orleans. Crescent Bank & Trust operates across 27 states and specializes in providing auto loans to customers with challenged credit. They target the sub-prime credit segment and often work with individuals who are denied loans from traditional lending organizations.
The Challenge of High Interest Rates
One of the main challenges with Crescent Bank & Trust auto loans is the high interest rates. On average, customers can expect an interest rate of around 18%, with rates varying based on credit scores. This high interest rate can significantly increase the overall cost of the loan and result in higher monthly payments. Many Americans end up overpaying on their interest rates because they rely on auto dealerships to provide them with loans. The primary goal of a car dealer is to sell a car and maximize their profit, which often leads to higher interest rates for the customers.
Reviews and Alternatives
It’s important to consider customer reviews and explore alternative options before making a decision. According to reviews on platforms like BBB, Yelp, and Glassdoor, Crescent Bank & Trust has received mixed feedback from customers. While some customers have had positive experiences, others have reported issues and complaints. It’s crucial to understand that Crescent Bank & Trust is not the only option available for auto loans. There are other lenders in the market, including captive finance companies owned by car brands, that you could have qualified for.
The Benefits of Refinancing
Refinancing your Crescent Bank & Trust auto loan can be a game-changer. By refinancing, you have the opportunity to lower your interest rate, reduce your monthly payments, and save thousands of dollars over the life of your loan. Refinancing allows you to adjust the terms of your loan to better suit your financial situation. It’s important to note that refinancing is most beneficial if you have made several consecutive payments on time and have improved your credit score.
How to Refinance Your Crescent Bank & Trust Auto Loan
Now that you understand the benefits of refinancing, let’s explore the step-by-step process to refinance your Crescent Bank & Trust auto loan:
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Determine your payoff amount: Before refinancing, it’s essential to know how much you owe. You can obtain this information by requesting a payoff statement from Crescent Bank & Trust.
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Compare rates from different lenders: Research and compare rates offered by various lenders or consult with a refinance broker. This will help you find the best rate possible.
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Calculate your new rate and monthly payments: Once you have selected a potential lender, use their online tools or contact them directly to calculate your new interest rate and monthly payments.
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Sign the paperwork: If you’re satisfied with the terms and rates offered by the new lender, proceed with signing the necessary paperwork to initiate the refinancing process.
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Pay off your existing loan: To complete the refinancing process, you’ll need to pay off your existing Crescent Bank & Trust loan. You can do this by following the instructions provided by the new lender.
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Set up autopay: After refinancing, consider setting up autopay from your checking account. Many banks and financial institutions offer rate discounts for enrolling in autopay, which can further reduce your interest expense and lower your monthly payment.
Repayment Options and Credit Reporting
Once you have refinanced your Crescent Bank & Trust auto loan, you’ll need to understand the repayment options and how it affects your credit report. Crescent Bank & Trust allows you to make payments online, over the phone, or by mail. It’s important to make your payments on time and in full to avoid any negative impact on your credit score. Crescent Bank & Trust reports your loan activity to credit bureaus, including payment history, outstanding balance, and any missed payments. By refinancing and consistently making your payments, you can improve your credit score over time.
Mistakes to Avoid When Refinancing
While refinancing can be a great financial move, it’s important to avoid common mistakes. One common misconception is that refinancing is a way to restructure your loan or start over with a new lender if you have missed payments. Refinancing is meant to lower your payments by reducing your interest rate or extending the loan term. If you have missed payments, it’s crucial to work with Crescent Bank & Trust to address any financial difficulties and create a plan going forward. Refinancing is most beneficial for individuals who have made their payments on time and have improved their credit.
Finding the Best Refinance Option
When looking for the best refinance option, it’s important to consider different lenders and explore their rates and terms. Credit unions, banks, and online lenders all offer auto loan refinancing. Some lenders specialize in working with individuals who have improved their credit scores, while others focus on sub-prime borrowers. Research and compare different lenders to find the one that offers the best interest rate and terms for your specific situation.
The Cost of Refinancing
Refinancing your Crescent Bank & Trust auto loan does come with some costs. While there are no prepayment penalties, you may incur fees for changing the lienholder on your vehicle title. The Department of Motor Vehicles charges a fee for this service, which typically ranges from $15 to $449. It’s important to review the costs associated with refinancing and factor them into your decision-making process.
The Timing of Refinancing
The timing of refinancing your Crescent Bank & Trust auto loan is crucial. While you can refinance at any time, the most significant savings come after making 12 to 18 consecutive payments. This allows you to demonstrate responsible payment behavior and improve your credit score, which can result in lower interest rates and monthly payments. However, it’s essential to regularly check your options and rates as they may change over time.
The Impact on Your Credit
Refinancing your Crescent Bank & Trust auto loan will not negatively impact your credit. Most lenders perform a soft credit inquiry to provide you with a pre-qualification offer, which does not affect your credit score. Only after you have accepted a firm offer and completed the refinancing process will the new lender perform a hard credit inquiry. The positive impact of refinancing, such as lower interest rates and monthly payments, outweighs any temporary impact on your credit score.
Conclusion
Refinancing your Crescent Bank & Trust auto loan can help you save thousands of dollars and reduce your monthly payments. By exploring different lenders, comparing rates, and understanding the refinancing process, you can make an informed decision that aligns with your financial goals. Remember to consider factors such as your credit score, payment history, and the potential costs associated with refinancing. With careful planning and research, you can take control of your auto loan and improve your financial well-being.