How does refinancing ever make financial sense for all parties?

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So I got a car recently, and the dealer and my parents agree that refinancing will be a good idea soon. How does it make sense for another creditor to buy your credit and give you a better rate? Why would the original creditor not just keep you on the hook for the worse rate?

In: Economics

10 Answers

Anonymous 0 Comments

The original creditor would keep you on that high rate if they could. Worst they can do is impose an early loan payoff fee.

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