Where's the Best Place to Refinance Your Car Loan? Imagine this: you've got a car, and you've got a loan to pay for it. But what if you could find a better deal, a way to pay less each month or even pay off your ride sooner? That's where refinancing comes in.
Very Good
RateGenius is one of the original options for online car loan refinancing. In operation since 1999, this referral service has helped fund over 400,000 refi loans nationwide. Borrowers are attracted to RateGenius' ability to save them an average of $101/month with competitive interest rates.
Options from 150+ banks and credit unions
There are over 150 lending partners in RateGenius' network, most of which are credit unions and smaller, local banks. That's part of how this platform can save you money: by connecting you with financial institutions who want to compete for your business.
Does your vehicle qualify?
It took some digging to find out what RateGenius' requirements are for vehicles and applicants. You probably won't be able to refinance your car loan if the model year is more than 11 years ago (nothing earlier than a 2013 in 2024, 2014 in 2025, and so on). Your vehicle make probably won't be a limitation; the list of possibilities in the initial application goes well above and beyond what you might see with rival services we evaluated (including luxury brands like Maserati and basic domestic makes like Chevy and Dodge).
Watch the mileage
Also, in the spot where you enter the mileage, RateGenius tells you that most of the lenders in their network will only refinance loans on vehicles with 150,000 miles or less, for clients with at least $24,000 in annual income of some kind. In our digging, we didn't see anything specifying a minimum/maximum dollar amount for refinancing, but poking around among blogs and reviews, we came away thinking it's likely in the neighborhood of $10,000 to $55,000.
A few minor rough spots during the quote process
We also felt like the initial application with RateGenius wasn't quite as smooth as some of their competitors. We were taken to the page where we thought we'd be given some refi options to choose from, but instead we had to verify our mobile number through a confirmation text. We were also told that one of their lending specialists would be reaching out to us. Neither of these things are red flags by any means, but just something that we weren't expecting.
Personalized help, including title transfer
Fortunately, you can always work directly with one of RateGenius' loan experts. You'll get that reach-out within 24-48 hours of submitting your initial inquiry, and they'll help you choose a loan offer you'd like to apply for. The right car refinancing loan will depend on if you're trying to lower your payments or your interest rate, remove or add a co-borrower, and so on. After you've gotten that information and selected a lender, you'll complete the full application (which can be done completely online, if you like), which will include a hard pull on your credit. One bonus: RateGenius takes care of transferring your title, which is just one advantage of using a service that's available in all 50 states.
Glowing reviews
Despite having a little over a hundred complaints filed with the Better Business Bureau over the last three years, RateGenius still earns the BBB's highest rating ("A+") and accreditation. That means that they've done an excellent job at responding to all of those complaints. Plus, looking at reviews left on the BBB listing and many other places, you'll soon see thousands of five-star ratings from borrowers who absolutely love what RateGenius offers. Clients appreciate the expertise of RateGenius' loan specialists, noting their genuine commitment to securing lower interest rates rather than just finalizing deals. And, lots of reviewers highlight RateGenius's consistent communication throughout, resulting in a fast and efficient car loan refinancing experience.
A small number of complaints
However, not all feedback is glowing. Some customers express frustration over unexpected hard credit pulls during the full application process and discrepancies between the rates quoted by RateGenius specialists and those eventually offered by lenders, indicating areas for improvement in transparency and initial quote accuracy.
Trustworthy option for refinancing your auto loan
In general, RateGenius comes in at a solid 4-star rating from us. It's pretty reassuring going through the car loan refinancing process with a company that's been around for over 25 years - and with hundreds of thousands of customers, most of whom have given a 5-star score for their overall experience. All it would take to move RateGenius up to our highest rating is some upfront details about their eligibility requirements, and maybe a slightly smoother online application process.
Continued from above...
Where's the Best Place to Refinance Your Car Loan?
Imagine this: you've got a car, and you've got a loan to pay for it. But what if you could find a better deal, a way to pay less each month or even pay off your ride sooner? That's where refinancing comes in.
Maybe when you first got your loan, your credit score wasn't so hot, and you ended up with a not-so-great interest rate. Or maybe the economy has shifted, and interest rates have dropped since you first signed on the dotted line. Whatever the reason, if you can snag a lower interest rate by refinancing, you could end up saving some serious money in the long run.
Like anything in life, there are pros and cons to consider. On the upside, refinancing could mean lower monthly payments, which can free up some cash in your budget for other things, like saving up for a rainy day or treating yourself to a fancy coffee every now and then. Plus, if you can get a lower interest rate, you'll pay less in interest over the life of your loan, which means more money in your pocket.
But there are downsides too. Refinancing usually means extending the length of your loan, which could mean paying more in the long run, even if your monthly payments are lower. And if your credit score has taken a hit since you first got your loan, you might not qualify for a better rate anyway. Plus, there are often fees involved with refinancing, so you'll want to make sure the potential savings outweigh the costs.
All pluses and minuses aside, it's a smart idea to start your car loan refinancing online. Instead of driving down to your local bank or credit union, you can compare rates and apply for refinancing right from the comfort of your couch. Plus, online lenders often have lower overhead costs than traditional brick-and-mortar banks, which means they can sometimes offer better rates and terms.
When it comes to comparing different sites for auto loan refinancing, there are a few criteria you'll want to keep in mind:
Ultimately, the decision of which site to use for auto loan refinancing will depend on your individual circumstances. Maybe one lender offers a slightly lower interest rate, but another has better customer service or more flexible repayment options. To help you do your homework and crunch the numbers, the experts here at Top Consumer Reviews have rated and ranked some of today's most popular options for car loan refinancing. At the end of the day, those car payments are your hard-earned money, so why not make it go a little farther with a better loan?
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Is it difficult to refinance a car loan?
If you're looking to refinance a car loan you'll find it's much easier to execute than in years past. Fortunately, car owners in 2021 have the option to go online to refinance a car loan. Even more, the online process makes it much easier than shopping in person. For those looking to refinance to perhaps lower their payment or even take advantage of a better interest rate, online car refinance can be as simple as a few clicks.
Benefiting from the Advantages of Online Car Loan Refinancing
Aside from preventing the hassle of finding a local finance company, driving there and finding a place to park, the online process offers conveniences that many people prefer. You simply input your personal data and car information to find a lender - no need to divulge your details to anyone, and it takes only a few minutes.
Avoiding Dings on Your Credit Report
Until you find the lender you want to work with you, nothing affects your credit score. With the information that you provide on your credit rating, a lender knows what to expect from your report. For example, each lender who offers refinancing for your car loan shows you a rate online, and you can accept it or keep shopping. True, your lender may inquire about your credit report to approve you at the beginning of your application, but it does not affect your score until you actually apply for a car loan.
The privacy that shopping online affords you lets you protect your credit rating. A personal visit to a local lender potentially means a ding on your report. When you go to a banks local office, it becomes clear that you want to decide on the spot what you plan to do. You can avoid getting pushed into a decision too early in the process by checking various offers online without agreeing to proceed with anything.
Comparing Offers
Your access to online refinancing for your car loan gives you an advantage that you do not have in a face-to-face meeting with a lender. When you can see the offers that refinance lenders make online, you can pick the one you like the best. Whereas at a bank or finance office, you may feel required to make an important financial decision immediately.
Without a friend or relative to discuss the decision with you, the chance of accepting an offer too soon increases. In the quiet of your home, you have time to think about it and talk it over. Rushing into a deal you live with for years when you visit a loan company's office rarely provides the best outcome. Online shopping lets you choose an option your most comfortable with.
Busy schedules make it challenging to meet appointments, frequently wasting time when almost no one has the time to spare. When you shop for your car loan online, you can do it at the most convenient time of the day or night. Even better, it does not require an appointment. You can start or stop searching at any time, and you can apply as often as you like.
Getting the Best Deal
When shopping online to refinance your current car loan, many people do not realize they'll find a better interest rate than at a local credit union or bank. Without the expense of overhead costs of physical branches, lenders can afford to offer better rates. You can benefit from the difference between companies with low operating costs and banks with branches in many locations. When your lender has fewer expenses, it makes money available to attract customers like you. Online refinance gives you opportunities that do not happen otherwise.
Your chance of approval improves with online refinancing too. Traditional lending institutions tend to rely on your FICO score as proof of your creditworthiness. When you have a good or better score, they make it easy to get a loan. Online lenders take a more reasonable approach and may approve a lower score. In addition, they can look at many other things in your financial history that make you a good candidate that they can trust, such as regular payments of utility bills.
Taking Advantage of Available Options
Knowing that you can refinance your car loan puts you at an advantage financially. Industry experts say that less than half of people who buy motor vehicles know they refinancing is an option. In addition, only a small percentage of car buyers ever use refinancing. For those that are looking for ways to make ends meet, car loan refinancing can provide an excellent option to reduce monthly car loan expenses.
Choosing an Online Unsecured Loan
In the world of online finance, you can find loans that do not require any collateral to qualify for approval. Most online loans fit into the unsecured category, and it works for your benefit. Instead of borrowing against your assets, you have another option borrow. Lenders count on you to repay the money you borrow, but failure does not let them repossess your car. Whether you have assets that can secure a loan or not, you do not need them when you go online to refinance your vehicle. Of course, the consequences of failure exist as a practice that does not help you in the long run.
Uploading Minimal Documentation
When you choose an online lender, you can expect to provide some paperwork as part of an application. A few minutes of locating and uploading necessary documents seems much better than handing your private papers to someone in an office.
Getting Approval Faster
A quick approval is another reason that many prefer shopping and securing refinance loans online. When you apply electronically instead of personally, you can complete an application in a few minutes. Lenders who approve you ahead of time can respond immediately instead of making you wait to receive a letter in the mail. You most likely need the money when you ask for it, and online refinance lenders respond promptly to your application.
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