GMAC announced in July 2010 that it was changing its name to Ally Financial Inc. The company provides financing for vehicles manufactured by General Motors, Chrysler and Saab. You can refinance your GMAC automotive loan through GMAC/Ally or obtain a loan from another lender. However, refinancing through GMAC/Ally could be a smoother and easier transaction because of your status as an existing customer.
Obtain your credit report from AnnualCreditReport.com—the only site officially authorized by the Federal Trade Commission to offer free credit reports under the terms of the Fair Credit Reporting Act. Visit the website to print a copy of your report (see Resources). Follow instructions on the credit report to order your credit score separately for a fee.
Review your credit report and score. Your ability to refinance with GMAC/Ally may hinge on your credit rating. Typically, scores of 720 or higher represent excellent credit, while scores below 620 are considered poor. With a poor credit score you may be forced into a high-interest rate loan.
Analyze your payment history on your car loan with GMAC/Ally. Multiple late payments could also affect your refinancing. A good payment history could help even if your overall credit score is less than excellent. Review your payment history by locating the GMAC/Ally account on your credit report.
Contact GMAC/Ally by calling the customer service department (see Resources). Tell the representative that you are a current customer and wish to refinance your auto loan to reduce the amount of the monthly payments.
Follow instructions provided by the customer service representative for applying for refinancing. You may be referred to a loan specialist or offered the opportunity to apply immediately over the telephone.
Apply for refinancing at another lender even if you are approved by GMAC/Ally. Compare the offers and take the best deal.