Many drivers assume that the only benefit of refinancing auto loans is to take advantage of lower interest rates. While this is a noteworthy boon of car loan refinancing, there are many other advantages as well.For example, refinancing your existing car loan can actually help improve your credit. There are a wide variety of factors that go into determining a credit score, but by far the most important is missed or late payments. Even consumers who have been diligent with their bills for several months can do damage to their score if they miss a payment.

If you're somewhat on top of things, there's really no reason to miss a payment – unless you don't have the money to pay off a bill immediately. This is where refinancing comes in. By extending the length of a car loan, you can actually lower the amount you owe on a monthly basis.

With a smaller monthly payment, you'll be able to ensure that you won't miss payments – and thus rebuild or improve your credit score. Not only is this helpful for your car loan, but it's also helpful for your finances in general. More money every month means that you'll be able to keep up with other financial obligations as well, like credit card bills – which also factor into your credit score.