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The short answer: You can refinance your car loan anytime, as long as you meet lender requirements. There’s no mandatory waiting period. That means the best time to refinance is when you’re eligible to improve your loan terms and pay less. When this is the case for you will depend on factors like your existing loan details, your finances, and broader market changes. For most borrowers, that means any time from about 6-12 months after taking out an initial loan until around a year before the end of the loan.When to Refinance Your Car Loan in 2026–2027: Your Complete GuideIn this guide, you’ll discover everything you need to know to determine if and when you should refinance your auto loan.We’ll look at:Essentials of when to refinance your car loanFactors to help you decide whether now is a good time to refinance your car loanFrequently asked questions about refinancing and timing a refinanceRefinancing Your Car Loan: The EssentialsRead on for the answers to the following frequently asked questions about refinancing an auto loan:What exactly is refinancing?Why would you want to refinance your car?When can you refinance your car loan?When is the right time to refinance a car loan? What Exactly Is Refinancing?Refinancing is replacing your existing auto loan with a new loan to get a better rate or better terms, typically by changing lenders.Here’s how it works:Search: Find a better deal for your car loanSwitch: Your new lender pays off your original loanStart: You start paying your new lender based on the new termsWhy Would You Want To Refinance Your Car?Refinancing your car can help you get a better interest rate, pay less monthly, or both.An auto loan refinance can help you:Get a lower interest ratePay less monthlyPay off the loan soonerAdd or remove a co-borrowerToo many people assume that their auto loan is something they are locked into from the day they finance a vehicle until the end of the loan. But not so! Many people are overpaying on their auto loans, paying higher rates than they’re eligible for, or otherwise stuck with terms that may no longer make sense for their lives. That’s where car refinancing can come to the rescue.When Can You Refinance Your Car Loan?When you want to! Contrary to popular belief, you are not obligated to wait any amount of time before refinancing your car loan.You only need to:Meet any eligibility requirements for your new loan.Be mindful of any terms on your old loan that might affect the refinance in order to refinance.Read the small print to make sure you’re getting a better deal than the one you already have! And one state-specific consideration: you may need your new registration before refinancing, which may slow down the process by 4 to 6 weeks.When Is The Right Time To Refinance A Car Loan? It’s never a bad time to consider a car loan refinance, because refinancing can save most people money. When is right for you, however, all depends on your unique situation. Here are a few factors to consider to decide whether now is a good time to refinance your particular loan: How long you’ve had your current loanWhere you got your loanYour current rateThe rates available based on the current economic environmentAny personal financial changes, like your credit score, debt-to-income ratio, and budgetReady to refinance?When you refinance with Auto Approve, a dedicated agent will help you understand what’s available to you, all of the loan terms and eligibility requirements, and identify the best deal for you and your unique situation. And, once you’ve found the best deal for you, we handle the paperwork—even the DMV!Get your free quote now.Factors To Help Decide Whether Now Is A Good Time To Refinance Your Car LoanWhat you need to consider, in short, is:Timing of your loanSource of your loanMarket ratesYour personal financesRead on to understand these factors in detail.TimeHow long you’ve had your current loan will affect how much you can save. For example: If you’ve just gotten a new loan, your credit score might appear lower because of the recent credit check.Too early or too late in the life of the loan, and you may not be able to find a deal that works for you. That’s because, depending on the loan, there may be fees associated with paying your original off early. Plus, the new lender will want enough left on your loan to make a lower rate make sense for them. Make sure to read your loan paperwork carefully.That said, if you’re unhappy with your loan, it’s always worth checking.SourceWhere you got your current car loan matters, because different lenders offer different deals. For example: You might have gotten a 7% rate at a dealership, but been eligible for 5%. Dealership financing, in particular, usually includes markups over and above the rate you’re eligible for. If you got your vehicle financing through a dealership, you’ll want to look into refinancing as soon as possible.Rate EnvironmentInterest rates aren’t just about you, they fluctuate with the economy. For example: The federal interest rate in July 2022, was 2.5%. In July of 2023 and 2024, it was 5.5%. In July 2025, it was 4.5%. These might sound like small changes, but on a big loan, they can add up to hundreds or thousands of dollars.If you got your current loan when interest rates were historically low a few years ago, your current rate may be hard to beat. However, rates have also been higher than they are now in the past few years – it all depends on timing.That said, if your financial picture has changed, or if you want to refinance for other reasons – like to add or remove a co-borrower, or to lower your monthly payment because of budget constraints – it’s certainly still worth it to get a quote.Personal FinancesYour personal finances, like your credit score, income, and debts, affect the rates you’re eligible for.For example: If your credit score was 650 when you bought your car 2 years ago, but is now 725, you’ve likely entered a new credit bracket and will be eligible for better rates.Essentially, if you are in a better place financially now than you were when you got your loan, even if nothing else on this list has changed, you are likely eligible for a more favorable loan.Should You Refinance Your Car Loan?In this section, we’ll answer the following common questions from those that want to refinance but need more information:Can refinancing benefit me?How can I improve my credit score?When should I try to refinance my car loan?What do I need for refinancing my car?What are refinancing mistakes to avoid?Can Refinancing Benefit Me?First things first, check your eligibility! You may be eligible for a lower interest rate if:Rates have gone down since you financed your vehicleYour credit score or income has gone upYou didn’t get a good deal in the first placeMost auto loans are amortizing loans, which means you pay a fixed monthly payment with interest that is already built into that payment. Here Are The Possible Benefits:Lower interestLower interest would mean a lower monthly payment, if the terms of the length of the loan stay the same. Pay less monthlySome people instead choose to refinance to change the length of their loan, so they pay less monthly but over a longer period of time.Finish paying off the loanSome might choose to pay more monthly in order to have their loan paid off sooner.Change the loanRefinancing also allows you to add or drop a co-borrower from the loan.Stretch your budgetLastly, refinancing can give you up to three month’s break in payments while the loans change over.When you use Auto Approve to refinance, an Auto Approve representative will help you understand your options and make sure you get the right deal for your unique situation – then do the paperwork for you.Get your free, no-commitment quote today to see how much you could save.How Can I Improve My Credit Score?Make timely payments.Keep your credit utilization low.Avoid unnecessary credit inquiries.Maintain a healthy mix of credit types. About 10-12 months is enough time to see a change in your credit score, which you can use as leverage to negotiate a better loan rate. Learn more about credit scores and refinancing here.When Should I Try To Refinance My Car Loan?If you think it might be beneficial to you, get a quote now. Checking eligibility and getting a quote on your potential savings is fast, free, and doesn’t require a credit check. If you like what you see, you can proceed, and if the timing doesn’t feel right, you can simply wait until later.  Reasons to start your refinance right now:The refinance process is simpleThere is no risk for you to find out your available optionsWith the right refinance, you can start saving money immediatelyIn general, the two main reasons why people refinance their vehicles are to lower their monthly payment or lower their interest rate.So if you’re still thinking about timing, consider:Whether paying less monthly or overall could help you outWhether your circumstances have changedWhether vehicle values or interest rates have changedWhat Do I Need For Refinancing My Car?For most lenders, you will need to collect:Information about the current loan and lender, including your account numberYour current total loan balanceVehicle information including the make, model, year, and VIN of your carRead more about the requirements to refinance a car here.What Are Refinancing Mistakes To Avoid?Here are some of the most common pitfalls to avoid when refinancing an auto loan:Prepayment penalties do exist, which means you may have to pay extra if you pay off a loan before a term is up. Look up the details of your loan and inquire what this fee is going to be.Waiting too long to refinance. The longer you wait in the life of the loan, the less sense it makes to refinance. Missing payments. Don’t miss any payments! Even if you think that the refinancing process has paused your payments, triple-check before you halt payment for the previous loan. Refinancing A Car In Fall 2026: The Short Versiontl;dr: Is now a good time for refinancing your vehicle? Here’s what you need to know:Rates and auto values have fluctuated dramatically over the last decade.If your life situation has changed, you may be able to save money by refinancing.Many dealerships mark up prices so you end up paying a higher rate than you were eligible for even at the time of purchase.Because of these factors, there’s a good chance you can lower your monthly car payment right now.So, Is Now A Good Time To Refinance A Vehicle?In terms of timing, it’s always a good time to check to make sure you’re not paying more than you need to be. Whether or not now turns out to be a good time to refinance for you personally, now is definitely a good time to get a free quote. At Auto Approve, our refinance experts can help you get a sense of whether you’re overpaying and what rates you might be eligible for in just a few minutes, with no commitment and no hard credit check required.GET A FREE QUOTE IN 60 SECONDS

Here’s the short version. With inflation hitting gas and car costs, expenses are high these days and budgets are strained. If you want to reduce how much you’re paying monthly related to your car, you could: Refinance your auto loan Lower your car insurance Plan ahead to use less gas Learn how to do routine car maintenance Carpool more often Downsize to a less expensive vehicle Pay attention to gas prices and buy strategically Skip the car wash and learn to detail your car yourself Read on for a more detailed look at each of these options and how to put these tips to work to start saving money today.8 Ways You Can Cut Your Car Expenses TodayFrom car payments to insurance to gas to maintenance, it can feel like the bills never stop. But there are a few simple actions you can take to cut costs here and there and make owning a car less expensive.1. Refinance Your Auto LoanRefinancing your car loan is one of the easiest and most effective ways to save money on your car. When you refinance your loan, you replace your existing loan with a new car loan, ideally one that has better terms and conditions. Refinancing to a lower car loan APR can save you hundreds, if not thousands, every year. There are several reasons you may qualify for a lower car loan APR:You have paid off some debt or increased your income, improving your debt-to-income ratioYour credit score has increased since you got your initial financingThe market rates have decreased since you financed your carYou got your financing through a dealership and are paying a marked up rate Refinancing your car loan also allows you to change your repayment period. This means that you can pay your principal off over a longer period of time. While you will end up paying more over the life of your loan, you can cut your monthly payments drastically, which may be a good trade off for you if money’s tight.2. Lower Your Car InsuranceYou are probably eligible for a lower insurance premium. In fact, you should compare insurance rates every year when it is time for renewal. There are a lot of insurance companies with competitive rates that offer discounts for different things. Researching some different companies can help you determine where you might find the best rates. There’s no harm in getting several quotes to see if it's worth the switch.  You can also review your current policy to see if you need all of the coverage that you have. Minimum insurance coverage requirements vary from state to state, so you will need to check your state’s laws to determine what you need. However, reducing unnecessary coverage is a great way to save money with very little hassle. You can also ask your insurance company if there are other steps you can take to reduce your premium, such as taking a defensive driving class or participating in a usage-based insurance program. These programs monitor your actual driving and can offer discounts based on how safe of a driver you are.3. Bundle Your Errands TogetherA great way to cut down on gas costs is to avoid driving as much as possible. One way to do this is to lump all of your errands together when you can. Instead of running out for groceries one day, to the dry cleaners the next day, and to the mall on the third day, simply devote one day to running around. You will save yourself many miles in backtracking, which will cut down on gas as well as wear and tear. And it’s better for the environment, as an added bonus!4. Learn To Do Routine Maintenance YourselfPutting air in your tires, changing your oil, and swapping out spark plugs and headlights are easy maintenance tasks that can save you a good deal of money if you learn how to DIY them. Watching YouTube or having a friend show your ropes can make these tasks incredibly easy, and maybe even enjoyable. If you do not feel comfortable or safe doing them, at least shop around for a mechanic that is reasonable. Avoid going to the dealership for routine maintenance at all costs, unless the cost is covered by your warranty. Dealerships are notoriously expensive for things like oil changes, so a neighborhood mechanic is typically a much better bet.5. Carpool With A FriendCarpooling with a friend or loved one is a great way for both of you to cut down on costs. If you are both going to work or to the gym, why not just go together? Splitting the cost of travel will make it more affordable, plus you can get some quality time together.6. Downsize Your CarTimes and circumstances change our lives, and sometimes a car that was once practical is no longer a good option. If you have a car that is too expensive, too big, or too expensive to repair, you can always downsize to a more economical car. If you want to make the switch quickly, sites like Carvana can help you trade in with very little hassle. If you have the time to sell your car privately, you will most likely make a bit more money, but it will take more legwork on your end.7. Comparison Shop For GasGone are the days when you needed to settle for the gas station down the street. Not only do most towns have a variety of gas stations to choose from, but there are many apps that will do the research of comparing gas prices for you. After all, it’s pretty unproductive to drive around wasting gas to compare prices. Apps like Waze, GasBuddy, and Gas Gurus can all help you find the best deal in town. 8. Wash Your Car By HandCar washes are convenient, but the costs can add up quickly. Instead, get the hose and bucket out and wash your car by hand. Handwashing is also much better for your car's paint job, as the automatic car washes use more abrasive chemicals and mechanical brushes which can cause the paint to deteriorate. While you are at it, be sure to wax your car every few months to protect the paint and prevent rusting. The cost of getting your car repainted in the future will far outweigh the investment of car wax and some elbow grease.Those Are A Few Ways You Can Cut Your Car Costs. Owning a car is expensive. And while you can’t control the price of gas or the cost of a new car, there are ways to keep your costs under control. Changing driving habits and being proactive when it comes to your insurance policy and car loan can result in some big savings.  If refinancing your car loan sounds like a good option for you, Auto Approve is here to help! We specialize in car loan refinancing and can help you through the process. From determining if you are eligible to signing on the dotted line, we will be by your side the whole time to help you save money today. So don’t wait any longer, get your free, no-commitment quote in 60 seconds!

Here’s the short version. Keep the car clean. Pay attention to changes.  Give your vehicle a day off sometimes.  Drive smoothly and carefully. Daily driving can leave your car needing a little TLC, from the coffee stains and hash browns on your leather interior to the aging tire treads and wear on your auto parts. But, with a few low-effort tricks, you can keep your commute and your ride fresh.So read on, dear commuter, for cleanliness tips, mileage hacks and easy ways to build car care into your daily routine. Commuting Tips To Keep Your Car In Great ConditionIn this guide, you’ll learn how your daily commute can become a time to keep your car as healthy as it can be.This article has everything you need to know about how to:Keep messes under controlNotice changes to your vehicleMake alternative transportation part of your planAdd regular car care into your daily routineDrive with your car’s long life in mind1. Don’t let your commute get messy Ideally, we’d tell you not to eat in the car at all. But if you’re commuting every day, those 40 minutes in the car may be your only time for breakfast or to snack after a hard workday. Here are a few tips to limit mealtime mess:Throw your coffee cups and food wrappers away at your destination, so they don’t contribute to smells.Try to choose foods that are easier to eat without spreading mess—think protein bars over sticky donuts. You can also put together a clean car kit for the front seat: keep a small garbage bag open in the car to gather trash and stow away messes, and store some wet wipes, shop towels, napkins, and a spray bottle of soapy water to keep any spills under control. 2. Get to know your carYou’re driving to work in this car, whether you pay attention to it or not. Why not take a minute to mindfully and intentionally notice what’s happening in the vehicle and around you?Make these three things a habit:Check your surroundingsTake a moment to check inNotice your vehicle Check your surroundingsFamiliarizing yourself with your car can start before you even turn on the ignition. Before you hit the old dusty trail to and from work, take a quick 360-degree look at your car and walk around the vehicle to check it out from all sides. Look for:Unexpected damage Leaking fluidObstructionsUnexpected damage on the vehicleThis could be a sign of a collision into your car, which might need maintenance.Fluid leaking from the undercarriageOil, coolant, or other liquids underneath your car might signal of a problem.Obstructions in your pathBy looking at the parked car from all sides, you can make sure nothing new is in the way that will impede your safe exit.Take a moment to check inNext, take 30 seconds to sit in silence after starting the car and give your engine a moment to warm up. This can also be your moment to get mentally ready for the day.Notice your vehicleOnce you hit the road, really become one with your ride. Take time to make note of what it sounds like when you accelerate, the level of stiffness in the steering wheel, the responsiveness of the brake. If you make this a habit, when something about the car is off, you’ll know, and be able to explain what’s changed when you see a mechanic.3. Plan to take alternative transportation sometimesThere’s a balance here. A car needs to be driven at least once a week to stay healthy, so you don’t want to leave your vehicle sitting unused for too long. But if you use it a lot after work or on weekends, making public transit part of your routine can keep your odometer low, extending the life of your warranty. So why not give your car a break?Look up bus, train, or streetcar schedules in your city and spend your commute looking out the window, reading a book, or catching up on the family group chat. If you don’t live somewhere with good public transportation options, you can also try riding your bicycle to work or carpooling with a friend or co-worker who has a similar route. Even switching up your commute just once a week can save some money on fuel, and that’s nothing to sneeze at.Take care of your wallet, tooIf you got dealership financing, you probably qualify for a lower rate on your auto loan. You could save hundreds each month by refinancing with Auto Approve.Get a free quote to see how much you could save.4. Make the gas station part of your routine (and not just for gas)Running on empty isn’t good for your car, so making a regular fuel stop part of your routine just makes sense. But there’s more! Checking your oil, washing your windows, and popping a little air in the tires when needed—all these things are easy to do at your local gas station. These habits can help your car drive more smoothly and keep you safe on the road. And the deals on coffee are usually unmatched. So why not make giving your car a bit of attention a regular part of your work week? Don’t forget to:Use your car’s recommended gas type. If your vehicle model recommends or requires premium instead of regular, the cost might be a bother but listening to the owner’s manual can extend the life of your car.Refill your windshield wiper fluid. There’s nothing worse than being caught with a dirty windshield on the highway, unable to do anything about it. Say hi to the gas station attendant. Being friendly improves the day of others around you, and if you work with people, it’s good practice for the next few hours. If you’re at a gas station with a car wash, all the better. Washing and waxing your car once a month or more can keep body work at bay by keeping your paint’s coating healthy. Also, it looks professional to come into work with a clean car—like you’re someone who cares about the details, and has their life in order. (If you don’t, that’s fine, but your car doesn’t have to give it away!)5. Drive safely, alwaysTo keep your car in peak condition, avoid: Sudden starts and stopsAggressive corneringExcessive idling Sudden starts and stopsSmooth acceleration and breaking will mean less wear on the transmission and brake pads for your car.Aggressive corneringThis can add stress on your suspension and tires. Take turns smoothly instead.Excessive idling when you’re waiting for other passengersLeaving the car on won’t change how long they take to get ready, but it will strain your engine and waste your gas.In general, drive prudently if you want to extend your car’s life.Sure, it can feel like everyone else on the road during rush hour is out of their mind. Anyone driving faster than you is a maniac and anyone slower has to get with the program. And after another tough day at the dream factory, it can be tempting to throw caution to the wind and get out your aggression driving like you’re in Grand Theft Auto.But you’ve got to save it for when you’re at home on your gaming console—if not for the safety of yourself and others on the road, then for the sake of your car. Trying to speed during rush hour traffic or perform risky maneuvers to get in front of a couple other people is just asking for a fender bender. Not great for your car! At best, aggressive stops and starts will result in more wear and tear on your vehicle, and you still won’t get home much faster than if you just took a breath and turned on a podcast. Chill.And Those Are 5 Commuting Tips To Keep Your Car in Great ConditionA great car is something to take care of. Avoid daily wear and tear with these tips and keep your car commuting with you for as long as you can.And don’t forget to take care of the financial side of your vehicle ownership too.Put more money in your pocket by refinancing your auto loan.With just a few clicks and no commitment, you can get a free quote to find out how much you could save.Get your quote now.

Here’s the short version. Never leave a child alone in a car. Minimize your blind spots. Stay up-to-date on safety models.  Keep your child the right temperature.  Don’t let kids get entangled in their seatbelts.  Teach children how to get out in an emergency.  Cars can be a dangerous place for children, but with safety gear, up-to-date vehicle models, and a watchful eye, you can minimize the risk to your most precious cargo.Read on to discover some handy tips and tricks to help keep little ones safe until you reach your destination. Here’s How To Make Your Car Safer For KidsIn this guide, you’ll learn how to keep kids safe inside your car—and how to protect any kids around or outside your vehicle.1. Buy a sensor or alarm system for the back seat (or just leave your shoe)Forgetting a child in the back of a car is dangerous, and it usually happens by accident. It’s more likely when someone changes up their routine and forgets a child is with them, or the child falls asleep in the back seat and doesn’t make a peep on arrival. The good news is, there are plenty of new solutions and gear to prevent this sort of accident! Some car seats have the option of a sensor and Bluetooth-connected app to tell you when your baby has been sitting too long, the car is too hot or too cold, or the seat is not buckled properly. New cars are also more likely to have rear occupant alerts. Most remind the driver to open the back door at the end of the ride if they opened it when they started their trip. Some also have ultrasonic technology that senses movement in the back seat and can trigger an alarm. Check if your car has any of these features. There are also after-market sound systems for your car that purport to make it near impossible to walk away from small passengers, setting off the horn if the driver forgets to open the back door or push a button in the back seat. However, systems that need to be professionally installed by an auto mechanic do create an additional expense, and after-market equipment may impact your warranty. Looking for a free, low-tech version of these solutions? Some parents who drive swear by the shoe trick: leave your left shoe in the back seat next to the child. Then when you arrive at your destination, you won’t be able to get far without remembering why you’re missing a shoe. (Not recommended if you drive stick!)2. Be aware of your surroundingsRoad traffic injuries, according to UNICEF, are the leading cause of death in children and teens 5-19 around the world. Children are smaller than adults and harder to see. Kids are also more likely to be impulsive, chasing after balls, toys and other objects in the road. It’s your job to keep your eye out for active play. Turn around before you back out and check your blind spots. The right gear might help. Blindspot mirrors, a backup camera, or a backup alarm when reversing your car can all give you and your neighbors more information when you drive. Of course, any tool can fail, so it’s still best to walk around your car and look behind you before you put your vehicle in reverse.3. Consider a newer vehicle modelCars keep getting exciting new tech and model updates, and safety standards constantly change. In 2024, the US Department of Transportation announced a major overhaul in how the National Highway Traffic Safety Administration tracks vehicles’ safety, starting with 2026 models. Along with five-star ratings for crash tests, the agency now notes whether vehicles have recommended safety technologies like automatic emergency braking, blind spot warning, and warnings if you veer from your lane. If you’re on the hunt for a new vehicle, you may want to use these safety guidelines to find a safer vehicle option.Saving up for a safer ride to protect your precious cargo?Refinance to pay less on your current auto loan by refinancing with Auto Approve so you can save more for added tech or a downpayment on an upgraded vehicle. Millions qualify for a lower rate.Get a free quote to see how much you could save.4. Don’t let a child get too hot or too coldWhether you’re on a family road trip or just doing the school pickup run, maintaining a safe temperature is key. Use the HVAC system in the car to keep it comfy. Also, keep a safety kit in your car with everything you need to handle road emergencies, including water for hot weather and blankets if the car breaks down on a cold day. In cold months, it’s important to prevent hypothermia or frostbite. But if your little one is still in a car seat, too much bulk can make car seats less effective in a crash. Choose lightweight, warm layers like merino wool and fleece that still let the safety harness fit snugly on the body. Then after buckling in, put a blanket on top, or put your little one’s coat on backwards over the fitted harness to keep them cozy. Never leave a child alone in a vehicle, even for just a moment. In cold weather, cars can become dangerously cold very quickly. And, when the weather warms, a car’s design creates a greenhouse effect that causes it to heat quickly, even when outside temps seem mild.5. Buckle up in the right car seatBuckle up and get comfy in a car seat that is the right size and fit for your child. The Centers for Disease Control and American Academy of Pediatrics recommend keeping your child in a rear-facing car seat as long as they fit—up to two to four years of age. Then, move to a forward-facing seat as long as they fit that—until at least age five. Once they’ve outgrown the forward-facing seat, kids should continue to wear a booster seat until a regular seatbelt fits properly on their chest and lap. Experts agree any restraint is better than no restraint, but a 2004 report from State Farm and The Children’s Hospital of Philadelphia shows graduating to the seatbelt too early can mean a higher risk of abdominal injuries, so don’t rush! Kidsafe Australia has an easy five-step test you can conduct to see if a child is ready to say goodbye to the booster seat.There’s another good reason to keep your child in the right seat for their size—the risk of lap belt entanglement. Children are inquisitive, and they may want to pull the seat belt all the way out to see how it works. Yikes! This is how seatbelts become risky. Most seatbelts lock into place when sharply tugged on or pulled all the way out of the retractor, and once the belt locks, the child may not be able to get out.The right car seat can help keep curious tots away from loose seatbelts. If your child has outgrown their car seat and is now using a seatbelt, teach them that it is not a toy. If their hands need stimuli, try designating a special toy for the car that can offer a distraction. Fidget spinners, squishy balls, or a stuffy from your kid’s favorite show can all help make rides fun and safe! 6. Lock your car (and teach your kids how to get out)The NHTSA says since 1998, more than 230 children in the United States “have died in cars after they gained access to a vehicle and became trapped.” Lock your car and trunk with the windows closed when you aren’t using it, so tiny explorers can’t jump in. And encourage your neighbors to do the same!Cars built after 2001 have an emergency release mechanism that allows someone to open the trunk if they are trapped inside. Make sure yours works and teach your kids how to use it to escape. Younger kids might not have the strength to open the trunk from inside, so above all, teach children that cars and trunks are not for playtime. And those are 7 ways to childproof your carLet’s be real – childproofing is just one of the many expenses you’re probably staring at right now. Paw Patrol themed birthday parties for Sophia, new Bluey sneakers for Grayson, Robux for little Riley’s Roblox habit… it all adds up. Free up your cash by refinancing your vehicle.Ready to spend less on your auto loan, and more on making memories with the ones you love? Find out how much you could save with just a few clicks.Get your free quote now.

Here’s what you need to know. Credit scores are crucial in determining eligibility for various loans, including car loans. Your credit score is determined by factors like payment history, types of credit, length of credit history, credit utilization, and recent inquiries on your creditYour credit score is a key factor lenders use to determine whether or not to give you a loan, and if so, at what rateThis is true both when getting a new loan and refinancing an existing loanIf your credit score is low, there are things you can do to raise it or secure a loan anywayRead on for a more detailed look at credit scores and their effect on your ability to get an auto loan or auto loan refinance.Credit Scores and Car Loans: Your GuideUnderstanding how credit scores impact car loans can help potential buyers make informed decisions. In this article, you’ll learn about the intricacies of credit scores and their influence on car loans and refinancing, as well as get tips for improving your credit score and navigating car loans if your credit score is low.Understanding Credit ScoresFirst, let’s look at the following frequently asked questions about credit scores:What is a credit score?How is a credit score calculated?Why do credit scores matter for car loans?How does your credit score affect your interest rate?What Is A Credit Score?A credit score is a numerical representation of an individual's creditworthiness. Here are the ranges as defined by FICO.RatingCredit Score RangePoor<580Fair580-669Good670-739Very Good740-799Exceptional800+It is derived from a person's credit history and serves as a tool for lenders to assess the likelihood of repayment. A higher credit score typically indicates a lower credit risk, making it easier to secure favorable loan terms.A good credit score is crucial for various financial transactions, such as applying for a mortgage, car loan, or credit card. Lenders use this score to determine the interest rate you will be charged and the credit limit you will receive. Therefore, maintaining a healthy credit score is essential for accessing affordable credit and favorable terms.How Is A Credit Score Calculated?Credit scores are calculated using various factors, including: Payment historyCredit utilizationLength of credit historyTypes of creditNew credit inquiriesThese factors are analyzed using sophisticated algorithms to generate a three-digit number that expresses your perceived credit rating and worthiness.Payment history plays a significant role in determining your credit score. It reflects whether you have paid your bills on time, missed any payments, or defaulted on loans. Consistently making on-time payments can positively impact your credit score and demonstrate your creditworthiness to potential lenders. Credit utilization, which is the amount of credit you use compared to your total available credit, also influences your score. Keeping your credit utilization low can help boost your credit score and show responsible financial behavior.How Does Your Credit Score Affect Your Interest Rate?Lenders use credit scores to measure a borrower's ability to repay the loan on time. Higher credit scores often result in lower interest rates, potentially saving borrowers thousands of dollars throughout the loan, because the lender believes the borrower is more likely to make all their payments and in a timely fashion. Lenders offer higher rates when they feel they’re taking on more risk with the borrower.And that’s not all.A good credit score not only affects the interest rate you’re offered, but also the loan terms available to you. Borrowers with high credit scores may have access to better loan terms, such as longer repayment periods or lower down payment requirements. This can make a significant difference in the loan's overall affordability and the borrower's monthly payments.Why Do Credit Scores Matter For Car Loans?Credit scores impact not only the interest rates but also the approval process itself. Lenders may be more willing to approve loans for borrowers with high credit scores due to their demonstrated history of responsible financial behavior. On the other hand, borrowers with lower credit scores may face more stringent approval requirements or may need to provide additional documentation to support their loan application.Borrowers with excellent credit scores can typically secure the most favorable interest rates, while those with lower scores may face higher rates or be deemed higher risk. This is because lenders factor in the potential risk of default when determining interest rates.Ways to Improve Your Credit Score For Better Car Loan OptionsTaking proactive steps to boost your credit score can increase your chances of getting more favorable loan offers.In this section, we’ll look at:Strategies to boost your credit scoreThe expected time frame for credit score improvementStrategies To Boost Your Credit ScoreKey ways to improve your credit score include: making timely payments, keeping credit utilization low, avoiding unnecessary credit inquiries, and maintaining a healthy mix of credit types. Gradually implementing these strategies can help elevate your credit score, opening up more favorable loan options.To start, consider these actions:Ensure you pay your bills on time. Payment history is a significant factor in calculating your credit score.Keep your credit utilization low by not maxing out your credit cards or by paying down credit card debt. This can also help improve your score.Time Frame For Credit Score ImprovementImproving your credit score takes time and patience. Positive changes to your credit habits can take a few months or longer to be reflected in your score, depending on your individual circumstances. Consistency and responsible financial behavior are key to significantly improving your credit score.Navigating Car Loans With A Low Credit ScoreA low credit score does not always mean obtaining a car loan is impossible. Here’s the short version:There are options available for car buyers with less-than-perfect credit. Some lenders specialize in providing loans to individuals with lower credit scores, although these loans may come with higher interest rates and stricter terms.Exploring alternatives such as secured car loans or co-signing may help secure a car loan despite a low credit score.Options For Car Buyers With Low Credit ScoresSecured car loans are a viable option for individuals with low credit scores. These loans require collateral, such as the vehicle itself, which reduces the lender's risk. By offering collateral, borrowers may have a better chance of being approved for a car loan, even with a low credit score. However, borrowers must understand that defaulting on a secured car loan can result in collateral loss, typically meaning the vehicle would be taken away from them.Borrowers with less-than-ideal credit scores can also look into getting a loan with a co-signer or co-borrower. This is common for young people without much credit history and for those working their way back from a low credit score. If you have a family member or trusted person with good credit willing to share responsibility for the loan with you, you may be able to get approved or get a better rate based on their good credit.Risks And Considerations For High-Interest Car LoansHigher interest rates can result in higher monthly payments and increased overall loan costs. Before committing to such loans, borrowers should carefully evaluate their financial situation and consider the long-term implications of the loan terms. High-interest car loans can lead to financial strain for borrowers, potentially impacting their ability to meet other financial obligations. It's essential for individuals with low credit scores to assess whether the loans available to them are manageable within their budget and to explore other options, such as improving their credit score before applying for a car loan. By taking proactive steps to enhance their creditworthiness, borrowers may qualify for more favorable loan terms in the future.Credit Scores And Car Loan RefinancingRefinancing a car loan involves obtaining a new loan with better terms to replace an existing one. It can be a valuable option for borrowers looking to lower their monthly payments or secure a lower interest rate. Refinancing is essentially the same as applying for a new auto loan, when it comes to credit score considerations, with a few added dimensions to keep in mind—in particular, how your credit score or financial picture has changed since you got your initial loan.Read on to understand:When to refinanceHow getting a new loan or refinancing a loan could affect your credit scoreWhen To Consider Refinancing Your Car LoanYou may want to refinance if:Your credit score has gone upYour debt-to-income ratio has gone downMarket rates have come downYou’re having trouble meeting your monthly payments and need new loan termsYou got a bad deal on dealership financingLet’s take a closer look.Your FinancesHaving an improved credit score often opens the door to refinancing opportunities, resulting in substantial savings over the life of the loan. The same is true for an improved debt-to-income ratio.Refinancing can also provide an opportunity to adjust the loan term, potentially extending it to lower your monthly payments or shortening it to pay off the loan sooner.The MarketIf market interest rates have dropped significantly since you initially took out your car loan, refinancing could be a strategic move to capitalize on the lower rates and reduce your overall interest expenses. Your Initial LoanLastly, if you got dealership financing, it’s likely you got a higher rate than you qualified for due to dealership rate markups, in which case you may want to consider refinancing in order to secure the rate you qualified for in the first place, even if little else has changed.How Car Loans and Refinancing Can Affect Your Credit ScoreRefinancing or getting a new car loan may temporarily impact your credit score. When you apply for financing or refinancing, you’ll get a hard inquiry on your credit report. However, the effects of this inquiry and new line of credit are temporary. If you make your payments consistently and responsibly, your new line of credit or refinance can raise your credit score in the long term.Particularly with refinancing, it's essential to note that while a hard inquiry may initially cause a slight dip in your credit score, the long-term benefits of refinancing, such as lower interest rates and improved payment terms, can outweigh this temporary effect. By staying vigilant about your credit utilization and payment history, you can mitigate any potential negative impacts on your credit score and position yourself for financial success.Now You Know All About Credit Scores & Auto LoansHere are a few key takeaways:By understanding how credit scores and car loans intersect, potential car buyers and those looking into auto loan refinancing can make informed decisions about their financing options. Being proactive and responsible with your finances can lead to a better credit score and greater financial freedom in the future.Improving your credit score, exploring alternative loan options, and considering refinancing can all contribute to securing a car loan that aligns with your financial situation and goals. If you’re interested in refinancing an auto loan, Auto Approve is here to help. When you refinance with Auto Approve, you get access to our network of 50+ trusted lenders, and an auto refinance expert to review your options with you and take care of the paperwork for you to make refinancing as quick and easy as possible so you can skip straight to saving money.GET A QUOTE IN 60 SECONDS

Here’s the quick version. When you’re shopping for a new auto loan or auto refinance, you should make sure to pay attention to the following things if you want to make sure you’re getting the best possible rate. Taxes Origination fees Registration fees Your overall APR Your interest rate Any dealer’s reserve Pre-payment fees Your loan term Some of these fees will be stated outright, while others you might need to infer. This is part of why it’s always good to get a pre-approval before going into a dealership—so you have a good sense of the interest rate and annual percentage rate (APR) you qualify for and can catch any added markups or fees.Read on to take an in-depth look at these fees, mark-ups, and other fine print items that can affect how much you pay on your auto loan.Auto Loan Fees: The Complete GuideDoesn’t it seem like the price tag these days is never the real price tag? Everything has added fees and hidden costs, so it is almost a guarantee that everything will cost more than you expect. And auto loans are no exception, whether you're buying a new car or refinancing your vehicle. There are always extra fees that rear their head and end up costing you an arm and a leg. So in this guide, you’ll get a much needed heads-up as to what to look for when you are choosing an auto loan.We’ll answer:What fees are charged on an auto loan?What should I look for when choosing a car loan?Should I refinance my existing auto loan?What Fees Are Charged On An Auto Loan?TaxesOrigination FeesRegistration FeesAbout Auto LoansFirst let’s discuss how auto loans are calculated, and then we can get into the added fees that come into play.You’ve picked out your car and you are so excited—it’s exactly what you want, down to the color and trim level. Once you have picked out all your add-ons, you have the total cost of the car. That is what your loan will be based on. The total amount of the car minus any down payment is the starting point for your loan. And then (drumroll please), enter the fees.Fees and taxes are added onto your principal (the tax is calculated based on the total cost of the car), which combined with your car loan APR, will determine your monthly payments. Here are some of the fees you can expect to pay for your car loan. These fees may also apply when you are refinancing your car, so if you choose to refinance, keep that in mind.TaxesYes, you have to pay sales tax on your new car. And that can add up to a lot of money. On a $30,000 car in a state with 6% sales taxes, that’s an extra $1800 for which you are responsible. This added cost gets added into your principal when you finance. Obviously taxes are non negotiable, so they are an added cost you will have to pay. You will not need to repay taxes when you refinance your car loan.Origination FeesOrigination fees are essentially the commission on a loan. They are also known as acquisition fees. They essentially pay for all of the paperwork that is required for financing. They are usually calculated as a percentage of the original loan, between 1% and 2% of the principal amount. On a $30,000 car with a 2% origination fee, it would be an extra $600 tacked onto your financing. While you might not be successful, it is definitely worth trying to negotiate on the origination fees. They are one area where the lender has some discretion, and it never hurts to ask. It might end up saving you a couple hundred dollars.Registration FeesAnd then there are the registration fees. You must pay a registration fee, title fee, and sometimes a plate transfer fee. These fees will depend largely on where you live, but you can expect them to run you somewhere around $150. These are non-negotiable fees.What Should I Look For When Choosing A Car Loan?Interest Rate and APRPayment TermsPrepayment PenaltiesCustomer SatisfactionIn addition to the fees that are charged, what else should you look for when choosing an auto loan? There are a number of factors that should come into play when deciding on car loan financing. Here are the top things to consider.Interest Rate and APRWhen choosing a car loan, the car loan APR is perhaps the most important thing to consider. Securing a lower APR is what will save you money. The interest rate that you are offered will be based on a number of factors, such as:Your credit scoreYour payment historyYour incomeYour debt-utilization ratioPrevailing interest ratesYour APR is your combined interest rate + any fees. For refinancing:If your credit score has increased since your initial financing, you may be eligible for a lower APR. If your income has increased, your debt utilization ratio has decreased, or market rates have decreased, you may also find that you are eligible for a lower car loan APR.If your credit score has not improved, aim to increase your score before refinancing. Your credit score is the single most important factor when lenders are preparing their financing offers. Look to make consistent, on time payments and request higher credit limits. Reducing your credit utilization ratio will also help immensely. Committing to increasing your credit score will help you secure a lower rate and save you money in the long run. Loan Payment TermsWhen deciding on a car loan, you want to consider the payment periods as well. In general, lower APRs are tied to shorter repayment periods, while higher APRs are tied to longer repayment periods. The shorter payment period will mean that your monthly payments will be higher (because you’re paying more of the loan in each payment), while a longer payment period will mean that your monthly payments will be lower. You will have to figure out what works best for you—sometimes a longer loan term and higher APR is the right choice to keep your monthly expenses low. But note that sometimes, when you get dealership financing, you’re offered something that looks like a better deal because it includes a longer loan term, meaning you have a lower monthly payment, but because of the APR, will cost you a lot more in the long run.Prepayment PenaltiesMany car loans have prepayment penalties built into them. This is to dissuade borrowers from paying off early (after all, the earlier you pay the loan off, the less interest you will end up paying and the less money they will make). If you are thinking that refinancing might be an option in the future, this may factor into your decision. These prepayment penalties can vary widely and can be quite expensive.The Customer Satisfaction RatingsYou should always pay attention to what other customers are saying. Are the lenders reliable and trustworthy? Are they responsive when there are issues? Check out websites like TrustPilot, Better Business Bureau, and Lending Tree to see what some of the most common complaints are. Top complaints for auto loan financers tend to include the following:Communication issues in regards to forbearance (when you pause your payments temporarily)Repayment options for forbearanceDelays from lender with regard to loan modificationOvercollection of funds for taxes and insuranceConfusion with account noticesPutting overpayments into an unallocated fund rather than applying them to the loan’s principalCommunication issues and a lack of transparency are usually at the top of the list when it comes to auto loan lenders. Be sure to consider this when making your decision.Should I Refinance My Existing Auto Loan?If you already have a car loan, you may be wondering “should I refinance my car loan?” And the answer is: probably! Here’s how you can decide if a car loan refinance is right for you.Car loan refinance is worthwhile if any of the following apply to you:You got talked into dealer financing with your original loan (which have notoriously high car loan APRs)Your credit score has improved since your initial financingThe market rates have dropped since you initially applied You need some extra breathing room in your monthly budgetYou want to add or remove a co-borrower to your loanIf any of those apply to you, car loan refinance may be a great option to save money and make your life a little easier. On the other hand, if any of the following apply to you, it might not be the best time to refinance your car loan.If your existing loan has heavy prepayment penaltiesIf you need a high credit score for another applicationIf your existing loan is less than six months oldIf your existing loan has less than a year leftIf your credit score has decreasedAnd That’s What You Need To Know About Auto Loan Fees And How You Can Decide Which Car Loan Offer Is Right For You.Choosing an auto loan is a big decision, but it’s worth taking your time to read the fine print, because choosing the right loan for you can save you a lot of money and stress in the long run. And, if you got a bad deal or your loan no longer works for you, don’t fret! Get a free, no-commitment quote from Auto Approve and our refinance experts can help you find a better deal and understand the fine print.At Auto Approve, we work with a network of over 50 trusted lenders all over the country, which means we can get you the most competitive rates out there. Our experts can not only guide you through the process of refinancing, but can help you compare offers and complete the paperwork. Auto Approve will even handle the pesky paperwork for the DMV! So, if you are thinking about car loan refinance, get your free quote now—all you have to do is answer a few questions and you’ll have a quote in minutes. GET A QUOTE IN 60 SECONDS

Why refinance an SUV? Here’s the short version. To save money. To balance your budget. To get out of a bad deal or loan that no longer works for you. Should You Refinance Your SUV? Your Guide Have you considered refinancing your SUV loan? Since most dealerships markup rates, millions of American drivers are paying more monthly than they need to be on your auto loan. Whether your monthly budget is tight, you want to change the terms of your loan, or you just want the better rate you deserve, refinancing is the best way to get a better deal on your vehicle loan.Isn’t refinancing a hassle?Nope! Refinancing is quick and simple, especially when you work with our refinance experts at Auto Approve. We’ll connect you with our network of 50+ trusted lenders, help you understand your options to find the right refinance for you, then do the paperwork for you — with no markups to your rate.Read on to read more about the how and why of refinancing.Here Are Our Top Three Reasons To Refinance Your SUV.Reason #1: Refinancing Can Save You A Lot Of MoneyDrivers who refinance with Auto Approve save an average of $135-$500 per month.For the vast majority of drivers, saving money is the ultimate goal of refinancing. By finding a lower car loan APR, you can drastically reduce the interest that you will have to pay over the life of the loan. Car loans are front-loaded amortized loans. This means that, in the beginning of your repayment, you are primarily paying back the interest, and as time goes on you gradually pay more towards the principal and less towards the interest. So the earlier you refinance your SUV loan, the more you save overall.Finding a lower car loan APR depends on two key factors: market rates and your finances.Market RatesThe interest rate that you are offered will depend in part on the prevailing market rates. If market rates are lower now than they were when you originally financed your SUV, you will most likely be able to secure a lower car loan APR. Your FinancesIf your credit score has increased since your initial financing, you will most likely be able to secure a lower car loan APR if you refinance. You may also be able to get a better rate if your credit score is the same but other factors have changed, like your income or debt-to-income ratio. However, your credit score is the most important factor lenders look at when deciding what interest rate is appropriate. Your credit score is based on:Payment history (35%)Amounts owed (30%)Length of credit history (15%)Credit mix (10%)New credit (10%)Your payment history and amounts owed make up the largest portion of your credit score. Making full, consistent, on-time payments and reducing the amount of overall debt you owe will make the biggest difference on your credit score. If you have been paying down your debts and consistently paying your bills, there is a good chance that your credit score has increased and you can secure a lower car loan APR.Reason #2: Refinancing Can Help With Your Monthly BudgetBy refinancing your SUV, you can loosen up your monthly budget significantly. Your monthly vehicle payment can be reduced by lowering your auto loan APR, lengthening your repayment period, or both.Reducing your car loan APR will automatically reduce the amount of your monthly car payment. Let’s say you buy a $25,000 car with a $5,000 down payment. You finance the remaining $20,000 with a 7% loan over 48 months. Your monthly payments will be around $480. But let’s say you now refinance your loan to a 3.5% APR. Now your monthly payments are down to around $445. That little extra might make all the difference in your monthly budget. Over the course of four years, that’s a savings of over $1,000.Lengthening your repayment period will also change your monthly payments significantly. Let’s look at that same $20,000 loan at 7% over 48 months. Changing your repayment period to 60 months will change your monthly payments from around $480 to around $400. That is a huge monthly savings (although keep in mind that you will be paying more interest over the life of the loan due to the extended repayment).If a little extra breathing room would help you with your monthly budget, refinancing your SUV is a great way to save some extra money.Reason #3: Refinancing Can Get You Out Of A Bad DealIt’s all too common for people to get roped into bad financing deals due to dealership markups. A lot of the time it’s all down to a smooth talking salesman and a moment of weakness. If you were a little underprepared when you went to look at a new SUV, you may have been blindsided and agreed to something that was less than ideal. Here are a few reasons that a loan might be considered unfavorable:The APR Is Too HighCar dealerships have notoriously high APRs. This is because they merely act as middlemen in your loan transaction with the lender. They simply markup the rates and fees that the lender offers. You should always avoid financing through dealerships–it’s much better to get a loan through Auto Approve. Unlike dealerships, Auto Approve never marks up their prices–ever. They compare different lenders and offers and pass the savings right on to you. The Lender Has Bad Customer ServiceBad customer service can be a serious issue when it comes to financing. Not only is it downright frustrating to not be able to communicate when you need it, but it can cost you money. According to Consumer Financial Protection Bureau, these are the major complaints with lenders:Communication issues about forbearance (a temporary pause in payments)Repayment options regarding forbearanceDelays from lender with regard to loan modificationOvercollection of funds for taxes and insuranceConfusion with account noticesPutting overpayments into an unallocated fund rather than applying them to the loan’s principalThese issues with lenders can add up and cost you money in the long run. So if you are in a bad relationship, you want to get out of it immediately. Refinancing your loan is a great way to do that.The Repayment Period Is Too LongWhile a longer repayment period will reduce your monthly loan payments, it will cost you more in the long run. If you are able to refinance your loan for a shorter period, you can save a lot of money.You Had To Use A CosignerIf your credit was not great, you may have needed a cosigner to get approved for your current loan. The only way to remove a cosigner is to refinance your loan. So if you are looking to take sole ownership of your loan, refinancing is the way to go.Those Are The Top Three Reasons To Refinance Your SUVThere are a lot of great reasons to refinance your SUV. From saving money to saving yourself from frustration, refinance can make your financial life much easier. If refinance sounds like a good option for you, getting started is easy: just get in touch with Auto Approve today! Our experts can answer any questions and help you start saving money now. Don’t wait to start saving – get your free quote.

In a Hurry? Here’s the Quick version. If you’re refinancing your vehicle loan, you should make sure to ask about the fine print. Be sure to ask your new lender (or possible lenders) the following questions before you sign:What is my new interest rate?What will my new APR be? What fees are included in that?What are my loan term options?What will my new monthly payment be?When will my payments start on the new loan?What paperwork do I need to file and what paperwork will you be handling?Are there any prepayment penalties on this loan?And make sure you read the fine print on your current loan. You want to make sure your savings outweigh any fees or prepayment penalties that might come up when you pay off your existing loan early.Read on to learn more about what you should watch out for when refinancing, why each question matters, and the best way to refinance.What to Ask When Refinancing A Car: Your Guide to the Fine PrintIn this guide you’ll find:A breakdown of the essential questions to ask when refinancing a carWhat to check for on your old loan before refinancing The best way to refinanceEssential Questions To Ask When Refinancing A CarRefinancing your auto loan is a great way to save money, if you do it right. Here are the most important things to ask about or check in your new loan agreement before signing.What is my new interest rate?Ideally, when you refinance, you will secure a lower interest rate than you had on your old loan.The best way to secure a better interest rate is to time your refinance based on factors like market rates and your financial picture (especially your credit score). If you’re worried you won’t qualify for a better interest rate, consider taking steps to improve your credit or adding a cosigner or co-borrower with good credit.What will my new APR be? What fees are included in that?Your annual percentage rate, or APR, is the most important thing to know and understand when getting any new loan or financing. Your interest rate matters, but it doesn’t give you the whole picture. The APR determines what you actually pay — it’s your interest rate plus any fees.If your APR is much higher than your interest rate, you’ll want to ask for a breakdown of what you’ll be paying for. Compare your new APR to your old one to get a sense of how much you’ll be saving.If you’re on the fence about refinancing and got your initial loan through a dealership, it’s definitely worth getting a quote, because dealerships often add markups to their loans that make the APR much higher than the interest rate you actually qualified for.What are my loan term options?When you refinance, you have the option to shorten or extend your loan term. Shortening it might mean a higher monthly payment but much more money saved over time. Lengthening it may cost you more in interest, but can help lower your monthly payment if your budget is tight.Make sure you understand your loan term and how it’ll affect how much you pay in interest and fees over time.What will my new monthly payment be?Review the final number on your new monthly payment before you refinance. This is, of course, the thing most people refinancing their vehicle will be most concerned about. It can be easy to get lost in interest rates and APRs, but you want to know, going in, the actual numbers before you lock yourself into a new payment.It is common to get an initial quote when you’re looking to refinance, but depending on the specifics of your finances, that quote may not match your final new monthly payment.When will my payments start on the new loan?When you refinance, your new loan payments may not start right away—in fact, some lenders don’t ask for your first payment until three months after the paperwork is signed.If money’s tight, refinancing with a lender that offers this option can be a great way to get some breathing room. Just make sure that your old loan is paid off before you stop making payments!What paperwork do I need to file and what paperwork will you be handling?There’s a lot of paperwork whenever you’re getting a new loan. When you refinance your vehicle, you’ll need to file paperwork with the DMV, for example. Some lenders will handle some key submissions for you, while others will leave it to you. When you refinance with Auto Approve, our refinance experts will handle all the paperwork for you, including the DMV.Are there any prepayment penalties on this loan?Prepayment penalties can take a big bit out of your potential savings.While most people don’t need to refinance more than once, it’s a good idea to make sure you know what would happen if for some reason you chose to refinance again. We make refinancing easy.When you work with Auto Approve, you get a dedicated refinance expert to guide you through the process and access to our network of over 50 trusted lenders—and we’ll never mark up your rate. Customers save an average of $135-$500/month.Get a free quote to see how much you could save.What To Check For On Your Old Loan Before Refinancing Before you lock in a refinance, make sure you know:Your old APR and interest rateYour loan term and how much time is left on your loanWhat you’ve been paying monthlyIf there are any fees or prepayment penalties you’ll have to pay when refinancingThe Best Way To RefinanceIf you’d rather have your questions answered before you need to worry about asking them, refinance with Auto Approve. When you apply through Auto Approve’s trusted lender network, you’ll also get help from our refinance experts, who will talk you through your options and the fine print to help you find the right deal for your unique financial picture, and handle the paperwork for you.Why refinance a vehicle at all?Because it’s a smart financial move: you can save hundreds of dollars a month.Refinancing can lower your monthly payment through savings, extending your loan term, or both, and give you a few months without payments when your budget is stretched too thin.To make a change. That is, it's the only way to add or remove a co-borrower or to change your loan term.Be Prepared When It’s Time to Refinance Your Auto LoanThese are the key things to ask about when refinancing and why they matter — and now you know how to skip the questions and go straight to your best available refinance.Refinance with Auto Approve to get all the answers you need without the legwork.Get your free quote now.

Here’s the short version. A soft inquiry does not affect your credit score. A hard inquiry will lower your score by several points, but the hit is temporary. Too many hard inquiries in a row can, however, hurt your score more, so it’s best to group multiple applications in a two week period and space out major purchases that require a credit check. Read on to learn more about the difference between hard and soft credit inquiries and how they can affect your FICO® credit score.Your Guide to Hard and Soft Credit InquiriesIf you’ve applied for credit in the past, you've probably heard the terms "hard inquiry" or "hard pull." But what exactly is a hard inquiry, and how does it affect your credit score?In this guide, we’ll share answers to the following frequently asked questions about credit scores and credit inquiries:What is a credit score?Is a FICO score the same as a credit score?What’s the difference between a hard and soft credit inquiry?How do hard inquiries affect your credit score?How many hard inquiries is too many?Does applying to refinance trigger a hard inquiry?How do you dispute a hard credit inquiry?How long do hard credit inquiries stay on your credit report?How do you minimize the effect of hard inquiries on your credit score?Let’s dive into it.What Is A Credit Score?A credit score is a three digit number that tells lenders how likely a candidate is to repay borrowed money. The number ranges between 350 and 850 and is calculated based on the following factors:Payment History. This accounts for 35% of your credit score. This shows lenders if you pay your credit accounts on time or not. It will also show missed payments and bankruptcy details.Accounts Owed. This accounts for 30% of your credit score. This refers to the amount of money you owe. This number is considered in relation to how much credit you have available to you (your credit utilization ratio). The lower your debt to credit ratio is, the higher your score will be.Length of Credit History. This accounts for 15% of your credit score. The longer you have had credit, the higher your score will be.Credit Mix. This accounts for 10% of your credit score. You will need a good mix of retail accounts such as credit cards, loans, and mortgages for a good score.New Credit. This accounts to 10% of your credit score. If you open a bunch of new accounts, you will be flagged for a lower score.Is A FICO® Score The Same As A Credit Score?Yes. FICO is essentially a brand of credit score. FICO stands for the Fair Isaac Corporation. It’s a software analytics company that produces the most widely used software for calculating credit scores. Almost 90% of credit decisions are made using FICO scores. So ultimately, yes, your FICO score is your credit score. What’s The Difference Between A Soft Inquiry And A Hard Inquiry?A soft inquiry, also called a soft pull, is a preliminary credit check. These credit checks are unrelated to direct lending decisions. These pulls can be done with or without a consumer’s consent. Some examples of soft inquiries include:A consumer checking their own credit score.A credit card company looking to pre-approve applicants.A background check performed by a potential employer.An insurance company looking to pre-approve quotes.Soft inquiries do not affect credit scores at all, they only provide preliminary information for those inquiring. That means, for example, if you’re thinking about refinancing your vehicle, you can get a free, no-commitment quote without a hard credit inquiry.A hard inquiry, also called a hard pull, is a formal credit check. Hard inquiries are done when consumers are actively seeking new lines of credit. These credit checks usually need to be authorized by the consumer. Lenders will make hard inquiries when you are:Applying for a mortgage.Applying for a car loan.Applying for a new credit card.Applying for a new apartment.Applying for a credit limit increase.Some utility companies will also perform hard or soft inquiries. If you are unsure what a pull will be classified as, be sure to ask these companies when you reach out to open these accounts.How Do Hard Inquiries Affect Credit Scores?The more hard inquiries you have in a short amount of time, the more of an effect the hard inquiries will have on your credit score. One hard pull may not affect your score at all, and if it does it will likely not drop your score by more than ten points. The risk comes when you open multiple new accounts. This is because you are then affecting the “New Credit” and “Length of Credit” categories on your credit score, which together account for 25% of your score. Does Applying To Refinance Trigger A Hard Inquiry?Applying to refinance your vehicle or mortgage will trigger a hard inquiry. Since you are applying for a new line of credit that will buy out your old line of credit, lenders need to see a full and detailed credit report. Condensing your refinancing shopping time to a window of two weeks will help minimize damage, this way multiple hard inquiries for auto loans will be counted as one hard inquiry. How Many Hard Credit Inquiries Is Too Many?This depends largely on your overall credit health and history. One or two hard inquiries will not make a big difference if you have a good credit score, but more than that and you risk dropping your score by 20 points or more. That said, again, multiple inquiries in a two week period will be counted as one singular inquiry.How Do You Dispute A Hard Credit Inquiry?If you see something that you didn’t do or authorize on your credit report, you can dispute items on your credit report with the major credit agencies. Experts recommend checking your credit score three times per year. There are three major credit agencies, Equifax, Experian, and TransUnion, and each of these allow you to pull your report for free once per year. Take advantage of this and strategically check your report throughout the year. If you notice there are hard inquiries that you did not authorize, contact the credit agency directly. This could be a sign of identity theft, and if that’s the case you want to take action early to minimize damage. Even if it’s not identity theft, you want to clear up any errors to make sure your credit report is accurate. Before you file a dispute however, do your research to make sure it’s not valid. Sometimes credit checks come from lenders that we might not recognize.How Long Do Hard Credit Inquiries Stay On Your Credit Report?Hard inquiries are calculated into your credit score for one year, but the inquiries remain on your report for two years. In other words, after one year they no longer affect your score.How Do You Minimize The Effect Of Hard Inquiries On Your Credit Score?The most important thing you can do when shopping around for a loan is to condense your search time. Credit bureaus give a two week period for inquiries to be made. If you apply for multiple loans in this period, the credit agency will consider them as one hard inquiry. This is the most important thing you can do to minimize damage from multiple hard inquiries. If you choose to refinance your vehicle with Auto Approve, we’ll make sure your applications are all submitted within the window, so you won’t have to worry.In general, experts caution you to be aware of hard inquiries, but they stress that this part of your credit report is the least impactful. Missed payments and high credit balances are much more detrimental than new credit inquiries.And That’s Everything You Need To Know About Hard Inquiries, Soft Inquiries, And Their Effect On Your FICO® Credit Score.Now you understand how credit inquiries can affect your credit score. And if you're thinking about refinancing your vehicle to a lower interest rate to save money, Auto Approve can help. Start with a soft inquiry and get your quote in just 60 seconds.

Here’s the quick version. A cosigner is someone who guarantees a loan. The primary borrower is responsible for their monthly loan payments and has their name on the loan and asset, but should that primary borrower default, the cosigner would be on the hook for payments.A co-borrower is someone with equal status on a loan as the primary borrower. Both borrowers hold equal responsibility to make payments each month and have equal stake in the asset and responsibility for the loan.Read on for a more in depth look at the differences between these two terms commonly used in lending, plus why you might want a cosigner or co-borrower and how to add or remove one from your auto loan.The Difference Between Cosigning And Co-Borrowing: Your GuideCosigner and co-borrower. These words are sometimes mistakenly used interchangeably, but there’s a big difference between being (or having) a cosigner vs. co-borrower, so it’s important to distinguish between the two.In this guide, you’ll uncover the answers to the following frequently asked questions about cosigners and co-borrowers:What is a cosigner?What is a co-borrower?Is it good to have a cosigner?How can I remove a cosigner?How can I add a cosigner or co-borrower to my loan?Let’s take a closer look.What Is A Cosigner?A cosigner is someone who agrees to be legally responsible for a loan if the original borrower defaults on the payments. Cosigners essentially give lenders a guarantee that someone else will be responsible for payments should the loan agreement not work out as intended.Cosigners can be found on apartment rental agreements, personal loans, mortgages—really any type of loan or rental agreement. If a borrower is young and has yet to establish credit, it is common for a parent or loved one to step in and cosign until the borrower has built up their credit. If a borrower is just getting out of a bad situation, such as a bankruptcy or credit card debt, a cosigner may be able to help them get back on their feet. Many car lenders have the following requirements for a first time car loan:You must have a monthly income of at least $1,600.You must make a down payment of at least 20%.You must have a credit score of at least 680.You must have established credit and not have a credit utilization ratio that is higher than 50%.Lenders may require proof of stable work history in addition to this. If you are a first-time car buyer, these may seem like difficult requirements. Lenders will therefore allow you to get a loan if you provide a cosigner.There are a few requirements to become a cosigner on an auto loan:They must be willing to cosign and accept the responsibility of repayment if necessary.They must have good credit, generally above 700.They must prove they have a stable income that can pay for the loan if it defaults.They must prove their residence.They must prove their employment.Lenders will consider all of this information in conjunction with the original borrower’s application materials when determining whether or not to approve the loan. Becoming a cosigner is a huge responsibility. You should only cosign a loan for someone you love and trust. It is all too common for financial relationships to put a strain on personal relationships, so it’s very important to communicate with your loved one if you decide to cosign with them.What Is A Co-Borrower?A co-borrower, on the other hand, is someone who is applying for the same loan with you. You are agreeing to equal share in responsibility of the loan and of the asset. Your co-borrower’s name will appear next to yours on the loan and on the title of the car. Your finances will be looked at with equal weight, and you’ll both need to submit the requisite paperwork. A co-borrower is a good idea if you want to own your car with someone, such as your husband or wife. They will have equal ownership, which may be perfect for you. Is It Good To Have A Cosigner?In general, cosigning a loan is a very big deal and it is a decision that should not be taken lightly. But if you are having trouble getting approved for a car loan, asking a loved one might be your only option. Having a cosigner will help you in the following ways:You will be offered a better interest rateYou will have some time to build creditYou will have someone to help guide you and give you adviceBut being a cosigner for someone else doesn’t really have a lot of benefits for the other person, and asking someone to cosign a loan is a big deal. They are on the hook financially for your loan.Insurers in some instances will hold the cosigner responsible for claims.It can be a strain on personal relationships.Before asking someone to take on this responsibility, ask yourself if you really need the loan (i.e. do you really need to buy a new car). If you are trying to build credit and are confident that you will not default, then you should take the following steps to prepare for cosigning. Prepare ahead of time before you ask them to cosign. Gather your financial information so that you can answer any questions they may have.Schedule a meeting to ask them and discuss in detail. Having a meaningful and honest conversation ahead of time is important. Make sure they are aware of what being a cosigner means.Get a plan in place for repayment. This will help assure them that you can pay back your loan.Don’t expect an answer right away. Give them time to think about what you are asking. If your cosigner agrees, it’s important that you keep them in the loop on whatever is happening with your loan. If you need help with a payment or have a problem, be transparent with them. How Can I Remove A Cosigner?If you have a cosigner on your auto loan, you may be wondering if it’s possible to remove them. Generally there are three options to get untangled from a cosigner:Ask for a cosigner releaseSell your carRefinance your loanAsk For A Cosigner Release.In certain situations a lender may allow you to simply release the cosigner from the loan. This is not typical, but it can happen in certain situations. Read your loan agreement carefully to determine if this is an option.Sell The Car.You can also simply sell the car and get a fresh start. This is a good option if the arrangement doesn’t seem to be going well and you have not been able to improve your credit enough to refinance the loan in your own name.Refinance Your Loan.The best way to remove a cosigner is to refinance your loan. When you refinance you are starting over with a new loan, so your new lender will pay off your old lender. If you have worked to improve your credit, you may be able to find a car loan with a good interest rate and repayment plan. Working with a company that specializes in refinancing can help you navigate these waters.How Can I Add A Cosigner or Co-Borrower?The easiest way to add either a cosigner or co-borrower to an existing loan is, similarly, by refinancing. You can really only add someone to a loan at the beginning of the loan, so either applying with them in the first place or applying together to refinance is the best—and often only—option.That’s Everything You Need To Know About Cosigning And Co-Borrowing.Both cosigning and co-borrowing are very serious financial relationships, although they differ on the details. Both relationships should be taken seriously and a lot of thought should be put into the decision to cosign to co-borrower before any paperwork is signed.Refinancing your loan is a great way to either add or remove a cosigner or co-borrower. If you are looking to make a change on your car loan, get in touch with Auto Approve today.Get a quote on your refinance in 60 seconds.