Four Refinancing Options For Your Auto Loan

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The first time you get an auto loan, you may not explore all of your options. You could be overwhelmed and settle for a high-interest loan with unmanageable terms - but this doesn’t mean your stuck dealing with it forever.

There’s always the option to refinance your auto loan. It’s common for customers who have improved their credit score to refinance their loan, as they’re able to take advantage of better interest rates. 

If you’re struggling to keep up with your monthly payments or just want to refinance your auto loan, then keep reading for more information on the best places you can go to refinance your auto loan. Alternatively, you can learn more about how to refinance your auto loan at Crediful.com.

Photo by Godisable Jacob from Pexels

Photo by Godisable Jacob from Pexels

MyAutoLoan

Pros

  • Low rates starting at 2.24%

  • Can receive your check within 24 hours 

  • Easy application process

  • Can explore offers from different lenders 

Cons

  • The car has to be younger than 8 years

MyAutoLoan is a great choice if you have good credit - as you can take advantage of interest rates as low as 2.24%, which is certainly lower than other auto loan companies out there. 

If you don’t have good credit, then you’ll still be accepted unless your credit score falls below 500. 

The amounts you can borrow vary from $7,500 to $100,000, and you can choose between offers from multiple lenders. The terms vary depending on your offer, but they’re generally between 24 and 84 months. 

To qualify for an auto loan with MyAutoLoan, your car needs to be younger than 8 years old, and have less than 120,000 miles. If your car doesn’t meet these requirements, then unfortunately you’ll have to look elsewhere. 

AutoCreditExpress

Pros

  • Perfect if you have a poor credit history 

  • Rated A+ by the BBB (Better Business Bureau) 

  • The application process only takes 3 minutes

  • Over 1000 dealer partners to work with 

Cons

  • Slightly stricter requirements than other lenders

It’s super easy to get started with AutoCreditExpress, and the application form will take you as little as three minutes. Don’t worry about your credit score getting impacted by applying as the prequalification doesn’t involve a hard pull. 

There are requirements in order to be accepted, and you’ll need to provide the following information:

  • Contact number 

  • Photographic ID 

  • W-2 forms 

  • Tax returns 

  • Bank statements 

  • Proof of address

  • Proof of insurance 

If your car is older than 10 years or has 100,000 miles or more, then unfortunately you won’t qualify. The minimum loan amount is $5,000, and the maximum varies depending on the lender. 

If your credit score is less than perfect, then you still stand a chance of finding a good auto loan with AutoCreditExpress. If your credit score is good, you can take advantage of competitive interest rates. 

AutoCreditExpress has an A+ rating with the Better Business Bureau, so is proven to be a great option for refinancing your car loan. 

AutoPay

Pros

  • Quick and simple prequalification application

  • Three types of financing to choose from 

  • Accept customers with a poor credit history 

  • Partners extensively with credit unions

  • Competitive interest rates 

Cons

  • Must earn at least $2,000 per month

With AutoPay you have three refinancing options, so you can choose which option is best for you. Traditional refinancing is the most common, and it’s designed to keep your interest rate low and your monthly repayments manageable. 

People also love their cashback refinancing option, because it essentially puts money back into your pocket. If you want to pay your lease in full before it expires without getting charged, then you can opt for their lease payoff refinancing option. 

Applying is easy, and AutoPay does a soft pull, which means your credit score won’t be impacted in the application process. You just need to provide the lender with the following information: 

  • Preferred loan term

  • Monthly rent or mortgage costs 

  • Your income (minimum of $2,000 per month)

  • Mileage of the car (maximum of 125,000)

  • Age of the car (maximum 11 years)

LendingClub

Pros

  • Can get connected with lenders in minutes 

  • Pretty basic requirements

  • Brief and simple application form 

  • No hard credit check

Cons

  •   Cars older than 10 years aren’t eligible 

LendingClub’s requirements are pretty simple, for both the loan and the car. Your existing loan must be at least one month old, have at least two years worth of payments left, and the amount must be in the range of $5,000 and $55,000.

The car requirements are pretty standard amongst auto loan companies. If your car is older than ten years old or has more than 120,000 miles on it, then unfortunately you won’t be eligible. 

The interest rates vary from a generous 3.49% to a steeper 24.99%, and your offer will depend on what your credit score looks like. To be considered, you’ll need a credit score of at least 510 - which is pretty low for a quality auto loan. 

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Disclaimer: the content presented in this article is for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

FCC Compliance: This article was sponsored by Crediful.com.