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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 GuideHave 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.

Can you refinance an electric vehicle? The short answer is yes. The refinance process is the same regardless of whether your vehicle is electric, gas-powered, or hybrid. However, because of the recent changes in EV credits, electric car owners may have a harder time finding a good deal when buying out a lease or refinancing right now. Read on to learn more about refinancing and unique considerations for EV owners. Financing for Electric Vehicles: The 2026 Complete GuideIn this guide, you’ll find answers to some of the most common questions about refinancing and lease buyouts for EVs.We’ll cover:The EV refinance processWhat you need to refinance an electric carHow changing EV credits could affect your financingLeased EVsThe first step if you’re considering a lease buyout or refinanceThe EV refinance processLike any other vehicle, the process to refinance an EV is fairly simple. You’ll need to:Collect all your information.Research and get quotes from multiple lenders to compare options.Choose the loan with the best terms for your financial situation and apply.Sign the paperwork and switch to the new loan.Let’s take a closer look.1. Collect all your information.Gather information about your vehicle, your current loan, and your finances. Take a moment to consider whether the timing is right for a refinance: has your credit score gone up or down since you got your initial financing? Has it been at least six months since you got your loan, and do you have at least 2 years left on the loan? How have market and EV tax credit changes affected your loan-to-value?If you got your loan from a dealership, or if your financial picture has improved, there’s a good chance you could save between $135 and $500 a month by refinancing.2. Research and get quotes from multiple lenders to compare options.Our refinance experts recommend getting quotes from at least 3-5 lenders in your refinance search to ensure you find the best deal for you. Be sure to submit all your applications within a 2 week timeframe when you get to the part of the process that requires a hard credit check — this will minimize the hit to your credit caused by a credit check.If you choose to refinance with Auto Approve, you don’t need to worry about this: you’ll get quotes from our network of 50+ trusted lenders with only one hard credit check, then an Auto Approve loan expert will help talk you through the fine print of the options available to you to help you find the deal that’s right for you.3. Choose the loan with the best terms for your financial situation and apply.Read over your options—and review your existing loan terms—to check for your new APR, loan terms, monthly payment, and any fees. You’ll especially want to check your current loan for any prepayment penalties that might outweigh your potential savings.4. Sign the paperwork and switch to the new loan.Simple as that! Once you’ve found your ideal loan option, you’ll submit any required paperwork (including to the DMV, if necessary), and once everything is locked in, your new lender will pay off your old loan and you’ll start paying the new one. Be sure that everything is settled with the old loan before you stop making payments to be safe.Again, if you refinance with Auto Approve’s lender network, we’ll handle the paperwork for you—even the DMV.What you need to refinance an electric carHere’s your refinance paperwork checklist:Driver's licenseSSNProof of addressProof of incomeCar detailsProof of insuranceVehicle registrationCurrent loan informationNeed more details? Check out our guide to the paperwork you need to refinance.How changing EV credits could affect your financingHere’s the good news: if you purchased an electric vehicle and got financing before Sept. 30, 2025, you should have already benefited from the recently canceled federal tax credit. Plus, while the EV tax credit went away, starting January 1, 2025, a credit kicked in allowing qualifying individuals to deduct as much as $10,000 per year in interest on new personal use vehicles.The bad news is, it’s likely we’ll see a slightly accelerated dip in the resale value of electric vehicles in the next few years due to the now-expired credit, and if that results in your vehicle’s value depreciating faster than what would have been estimated at the time you got your original financing, your loan-to-value on your EV could get wonky, which could affect your eligibility for a better rate.Confused? The loan-to-value on a financed car, often abbreviated as LTV, is the percentage of your car’s value that you owe on an existing loan. You can read more about what it means, why it matters, and how to improve your loan-to-value here.Leased EVsIf your EV is leased and you’re considering a lease buyout, the drop in resale value for electric vehicles may be of greater interest to you. When you come to the end of your lease, you’ll likely have the option to either return the vehicle or buy it at a price set at the time you got your lease. If that price is higher than the market value of the car, it simply isn’t a great financial choice unless you really love that specific vehicle—or know that you’ll get dinged at turn-in time for issues with the condition of the car.The first step if you’re considering a lease buyout or refinanceThe first thing you want to do is gather intel: make sure your finances are in order and check the current market value of your vehicle. Then, reach out to Auto Approve to make the process smooth and simple, with no mark-ups on your rate.And that’s everything you need to know about refinancing or leasing an EV in 2026.In short: financing or leasing an electric vehicle today isn’t all that different from a standard gas-powered vehicle, with the exception that you’ll have to pay attention to how state and federal credit changes might shift your vehicle’s market value and how many similar vehicles are up for sale.If you’re ready to get started with your refinance, the experts here at Auto Approve have helped over 180,000 drivers get a better rate. Let us help you find your best deal today.Get a free quote now.

Here’s the short answer: that depends! Auto Approve customers typically save between $135 and $500 per month.Factors that determines how much you can save by refinancing include: Your current loan rate The loan-to-value on your vehicle Whether your financial picture has changed since you got your initial financing Whether you want to add or remove a co-borrowerHow market interest rates and your vehicle’s value have shifted since you financedWhere you got your initial financing (for example, dealership financing contains markups that make you more likely to save by refinancing)Want to know more? Read on.Here’s Your Guide To How Much Money You Can Save By Refinancing Your Car LoanWhen you refinance your car loan, you essentially restart your car loan with new terms and a new car loan rate. And this can translate to a lot of money in savings. But just how much can auto refinancing save you, and how do you decide the time is right?In this guide, we’ll cover:How refinancing a car loan can help you save moneyWhat you need in order to refinanceHow to know when the time is right to refinance, if you want to save moneyHow Does Refinancing A Car Loan Save You Money?Here are three key ways you might save money through refinancing:By lowering your annual percentage rate (APR)By lowering your total interest paid by shortening your loan term orBy lowering your monthly payment by lengthening your loan termWe’ll explain.Refinancing To A Lower Car Loan APR Saves You MoneyThe most common way to save money by refinancing your car loan is to secure a lower car loan APR. You may qualify for a lower car loan APR if any of the following apply to you:The market rates have decreased since you initially financed your car.Your credit score has improved since you initially financed your car.Your debt-to-income ratio has improved since you initially financed your car.You are adding a cosigner to your car loan who has a good credit score.Your original loan contained dealership markups.Your credit score is the biggest factor that lenders consider when they are determining what car loan APR to offer you. Credit scores are designed to tell lenders how much of a credit risk you are. The higher your credit score is, the more likely you are to repay your loan (at least in the eye of the lender). So while you do not have control over the market rates, you do have control over your personal finances and your credit score. Your credit score is determined by looking at the following categories of your finances:Payment history (35%)Amounts owed (30%)Length of credit history (15%)Credit mix (10%)New credit (10%)Your payment history and accounts owed are the two most influential sections of your credit score. Therefore paying attention to these categories will help you increase your score the most. If you are interested in refinancing, it is a good idea to ensure your credit score is in top shape before applying for refinance. Commit to making full, consistent, on time payments to all of your lenders, pay off accounts with a high credit utilization ratio, request higher limits on your accounts, avoid opening new lines of credit, and review your credit report for any errors. All of these steps can help improve your score, which will lead to a better car loan APR when refinancing a car.But just how much money can you save by lowering your APR with an auto refinance? Let’s look at an example. You initially financed $25,000 with an 8% car loan APR to be repaid over 5 years. Your monthly payments are $506.91. Over the course of five years you will pay $5,414.59 in interest alone. But let’s say you improve your credit score and you are able to refinance your car loan to 5%. Now your monthly payments are $471.78 and you will pay a total of $3,306.85 over the life of your loan. That’s over $2,000 in total savings. Refinancing To A Shorter Repayment Period Saves You MoneyWhen you refinance your car loan, you can change the repayment period. You can either lengthen the repayment period or shorten it, depending on your financial needs. If you want to save money in the long run, shortening your repayment period will mean that you will pay less in total interest over the life of the loan, but your monthly payments will ultimately be higher.Let’s look at the same example from above. You initially financed $25,000 with an 8% car loan APR to be repaid over 5 years. Your monthly payments are $506.91. Over the course of five years you will pay $5,414.59 in interest alone. But if you were to refinance to a loan period of 4 years instead of five years, your monthly payments would rise to $610.32. With one less year of interest payments, you would only pay $4,295.51 in interest. That’s a savings of over $1100, even if you don’t qualify for a lower car loan APR, if you have the income to cover a higher payment. If you qualify for a lower car loan APR on top of that (and many do!), the savings add up even more.Refinancing To A Longer Repayment Period Saves You Money On Monthly PaymentsIf you are having trouble making your car payments every month, lengthening your repayment period can significantly reduce your monthly payments and give you a lot more breathing room every month. Let’s consider the above example in reverse. If you initially had a $20,000 loan with 8% APR over 48 months and refinanced to 60 months, your monthly payments would reduce by over $100. While you would end up paying more in the long run, you would give yourself a lot of breathing room every month. By making your payments more manageable, you would give yourself more money to pay other bills and pay down other debts, which can ultimately improve your credit score.What Do I Need To Refinance My Car Loan?Refinancing your car loan is easy and doesn’t require too much. The first step is to see if you qualify for a car loan refinancing. Requirements will vary from lender to lender, and eligibility typically depends on:How old your car isHow many miles your car has on itHow much money is left on your loan There may be other factors at play, but generally the older your car is and the less it is worth, the harder it will be to refinance your car loan. If your car is ten years or older or has over 100,000 miles you may not be able to refinance. Also, if you do not have a lot of time left on your loan, lenders might not feel it is worthwhile for them to refinance your loan. Auto Approve can help you determine whether or not you are eligible for refinancing. If you are eligible, you want to shop around with different lenders and compare before applying. You won’t have specific terms and rates to compare, but you can look at customer satisfaction ratings and reviews to get a sense of what each company is like. You can refinance a car loan with a traditional bank, a credit union, or an online lender. You will want to apply to 3-5 lenders so that you can compare and get the best terms. The following documents are typically required when you refinance a vehicle.A Photo ID, such as a passport or driver’s license.Your vehicle’s information, which may include the bill of sale, VIN number, make, model, and year of your car.Proof of income and financial history, which may include pay stubs, banking information, and your credit report.  Proof of residence, such as a mortgage statement, lease agreement, or utility bill. Note that PO boxes are not acceptable as proof of residence.Proof of insurance.Worth noting:Be sure to apply to all of them in a fourteen day window so that they all count as one hit on your credit report! When you use Auto Approve to find your refinance, we handle gathering quotes for you, connecting you with a network of over 50 trusted lenders and a refinance expert to guide you.When Should You Refinance A Car Loan To Get The Most Benefit?So, how do you know if the time is right to refinance your car loan? While you can refinance your car loan at any time, it is more beneficial to do so at certain times. The time is likely right to refinance if:Your credit score has increasedMarket rates have decreasedYour debt to income ratio has improvedYou have had your existing loan for at least six monthsYou have more than two years left on your existing loanYou want to add or remove a cosignerIf some (or all) of these conditions apply to you, the time might be right to refinance. You can refinance before six months, but waiting six months to a year will give your credit score a chance to rebound from your last financing inquiry. It will also give you a chance to establish a good payment history, both of which will help you secure a better car loan APR. New lenders will appreciate seeing your on time payments to your existing car loan.The time might not be right to refinance a car if:Your credit score has decreasedMarket rates have increased significantlyYour debt to income ratio has gotten worseYour loan is brand newYour loan period is almost over.And That’s How—And How Much!—You Can Save By Refinancing Your Car Loan.If you’ve been asking yourself “why do people refinance auto loans?,” the answer is simple—it can save you a lot of money! Want to know whether you qualify? Get started with Auto Approve today to see just how much money you could be saving.Get a quote in 60 seconds.

Here’s the short version: A credit score is a number assigned to a person that indicates to lenders their capacity to repay a loan. The number is between 300–850 and indicates a consumer's creditworthiness. The higher the score, the more likely a person is deemed to pay back their loan. Credit scores are determined based on factors like how much you owe, how often you’ve made on-time payments, the kind of credit you have (like student loans, credit cards, a mortgage, a car loan, and so on), and how long you’ve had it.Read on for a more detailed look at credit scores, how they’re determined, and how you can change yours. After all, whether you want to buy a house or refinance a car loan, your credit score matters.Credit Scores: Your Complete GuideCredit scores can feel a bit mysterious. How are they calculated? Why do they seem to randomly increase or decrease?Today, we're talking all about FICO scores. Here’s what you’ll learn in this guide:What FICO meansHow credit scores are calculatedWhat causes a credit score to changeWhy good credit is importantHow to increase your scoreIn short, here are all the answers to the most common questions about credit scores.What Does FICO Mean?FICOⓇ stands for the Fair Isaac Corporation (originally Fair, Isaac and Company). Founded in 1956, the company came up with a now-ubiquitous system of scoring consumers to determine their credit worthiness, the FICO score.How Are Credit Scores Calculated?Credit scores are calculated based on 5 different categories. Payment history (35%)Amounts owed (30%)Length of credit history (15%)Credit mix (10%)New credit (10%)All of these categories contribute to your credit score, but some have a lot more weight than others.Payment HistoryDo you pay your accounts on time? Do you miss payments? How many days past due are your bills? These are factors in your payment history score. If your payments are over 30 days late, your lenders will typically report it to the credit bureaus. You want to have a high proportion of on-time, full payments to make your payment history score high. Amounts OwedThe amounts owed category is a mix of how much money you owe, how much money you have available to you, and the number and types of accounts you have. An incredibly important factor in this is your credit utilization ratio, which is a ratio of how much money you owe compared to how much money you have available to you. This ratio should be less than 30%.Length Of Credit HistoryThis category looks at how long you have had open and active accounts. How long have your credit accounts been established? How long has it been since you used certain accounts? The longer you have a history of having open accounts and consistently paying them, the higher your score will be.Credit MixYour credit mix looks at how diverse your accounts are. Healthy credit mixes can include installment loans, mortgages, car loans, credit cards and retail cards. Having a good mix will give you a better score.New CreditThis category looks at how many new accounts you have. If you have a short credit history with many new accounts, this will count against you. What Causes A Credit Score To Change?There are three credit bureaus that calculate credit scores: Experian, TransUnion or Equifax. Creditors typically send updates to these credit bureaus monthly. There are many things that can cause a credit score to change. A missed or late payment, paying off a debt, or closing an account are just a few things that can change your score. But sometimes it feels like you really haven’t done anything different and your score has fluctuated. No missed payments, no closed accounts. Well, the reality is that your score is always fluctuating. This is because if you are consistently paying your bills and consistently using your credit, things are going to shift one way or the other.Here are some of the most common reasons your credit score will fluctuate.You reduced your overall debt. If you have paid down some of your accounts, such as your mortgage or car loan, it reduces your overall debt. This will increase your score even though you haven’t necessarily done anything (besides paying your bills regularly).You reduced your borrowing limit. If you go for a long period of time without using one of your lines of credit, it could trigger the account credit limit to be lowered. This will increase your credit utilization ratio, which will have a negative effect on your score.You paid off a loan. Wait, isn’t that a good thing? Well yes and no. It’s great to have one less bill every month and one less headache, but when the loan is paid off, it affects many parts of your credit score. It will cause your credit mix to change, your overall debt to reduce, and your borrowing limit to reduce. Also, if you paid your account on time it will no longer factor into your score as heavily. Time has passed. Time simply passing will cause your score to change. If you are not keeping your accounts active, it will count against you. A negative event expired. If your house was foreclosed on or you had to declare bankruptcy, this appears on your credit report. And it stays for anywhere between 7 and 10 years, depending on the event. As time goes on, their impact is reduced, and eventually they will be wiped from your report.Identity theft. If there is a big swing in your credit report, it's possible that someone is using your credit to open unauthorized accounts. If you suspect this, request a copy of your credit report immediately and talk to the credit bureau.Why Is Good Credit Important?So we know how credit scores are calculated, but why are they so important? In short: having a good credit score indicates to lenders that you are creditworthy and will pay back your debts. Having a good credit score can help with the following:Lenders will approve you for lower interest rates on credit cards and loansLenders will be more likely to approve youLenders will give you higher credit limitsInsurance companies will give you better insurance ratesLandlords will approve you for rentals more easily You will have more negotiating power for loans and accountsHow Can I Increase My Credit Score?Make on-time paymentsRequest higher limitsPay down debtCheck your reportConsider refinancing If you want to increase your credit score, there are a number of things you can do in the long term and the short term. Make On-Time PaymentsMaking consistent on time payments is the most effective way to increase your credit score. Remember, payment history makes up for 35% of our credit score, so this category is extra important as it carries the most weight. Try to set up for autopay if possible to ensure that you don’t miss a payment.Request Higher Credit LimitsOftentimes, credit cards will raise your limits automatically throughout the years. But it doesn’t hurt to ask for your limit to be raised. Raising your credit limit will raise your available credit and reduce your credit utilization score. This can score you some extra points on your score, as this part of your credit score accounts for 30% of your total score.Pay Down Debt StrategicallyYour credit utilization ratio looks at your overall debt compared to available credit, as well as your debt to available credit for each account. So if you have one account in particular that has a higher ratio, prioritize paying down that debt first.For example, say you have two credit cards. One has a limit of $20,000 and a balance of $5,000. The credit utilization ratio for this account is 25%. The other credit card has a limit of $10,000 and a balance of $3,500. The credit utilization ratio for this account is 35%. You should prioritize paying down the debt on the second card to reduce that credit utilization ratio.Check Your Credit Report And Dispute ErrorsYou should get in the habit of requesting your credit report three times per year. It is free to do so once per year from each of the three credit bureaus. When you get your report, look over everything carefully. Cross check your payment records and credit limits and make sure nothing is misreported. This will also help you catch any fraudulent activity that may be brewing.If you notice any issues or irregularities, report them to the credit bureaus immediately. They have 30 days to investigate and respond, so the sooner you report any issues, the better.Refinance Your Car LoanYou are probably wondering, “Wait, does refinancing affect your credit score?” – and the answer is yes. In fact, a great way to improve your credit score is to refinance your car loan. It will not instantly raise your credit score (on the contrary, the hard inquiry on your account will temporarily ding your score). But refinancing your car loan can help you out in the long run. Refinancing your car loan when market rates are low will help you secure a lower car loan APR. And this can save you lots of money every month, not to mention overall. It will ultimately free up more money every month so that you can pay off other debts and ensure that other payments will not be late. And That’s Everything You Need To Know About Credit ScoresPut in the time and effort to make sure you have a good credit score. It will pay off tenfold in the long run. If you have a good credit score but want to bump it up to the next level, consider refinancing your car with Auto Approve. We can help you save loads of money every month, and who couldn’t use some extra cash?GET A QUOTE IN 60 SECONDS

Here’s the quick version: Understeer and oversteer are terms used to describe how a moving vehicle takes turns.Understeer is when the vehicle doesn’t turn as much as it needs to or feels like it should—you have to turn the steering wheel more than you’d expect.Oversteer is when a vehicle turns more than you want it to—it seems extra sensitive to steering.Read on for the longer answer and an explanation of how oversteering and understeering happen, and how it might affect your choice of vehicle when buying a new or used car.Oversteer vs. Understeer: Your Complete GuideIn this article, you’ll find answers to the following FAQs and common concerns about oversteer and understeer:What are oversteer and understeer?What causes a vehicle to understeer?What causes you to oversteer?Which is better, oversteer or understeer?Which vehicles are more likely to over or understeer?What that means for your choice of vehicle when buying a carHere’s what you need to know.What are oversteer and understeer?Oversteer and understeer are terms used to describe a vehicle’s response to steering and sensitivity to changes in steering angle when combined with acceleration. Basically, they describe what happens when something doesn’t go quite right when you’re turning.What causes a vehicle to understeer?Understeer happens when your vehicle loses traction on its front wheels and doesn’t turn as much as you expect it to. It looks like going straight when you want to turn, or taking an extra wide turn. As an example, understeering might happen if you start accelerating too early while turning, in which case you’d need to gently slow your acceleration.What causes a vehicle to oversteer?Oversteer happens when you lose traction on the back wheels of your vehicle and it turns too much, with the back of the vehicle swinging out further than you might want it to. It looks like turning more than necessary, or “drifting.” For example, you might end up oversteering if you take a turn too fast or brake sharply, in which case, you’d need to steer against the slide—similar to what you’d do if you found yourself sliding on ice or hydroplaning.Which is better, oversteer or understeer?That’s contextual! Oversteer is sometimes considered better for performance driving, like racing, because it allows the vehicle to make sharper turns and more easily accelerate out of a turn. However, for general driving on public roads, understeer is preferred, because it’s safer than spinning out on the road. If you panic while understeering, you’ll likely go straight forward, meaning any collisions are typically taken by the front of the car, which is designed to take more impact. Which vehicles are more likely to over or understeer?Oversteering and understeering are caused by how weight is distributed in a vehicle and tire condition.Rear wheel drive vehicles, like sports cars, are more likely to oversteer, while front wheel drive vehicles, like most common sedans and hatchbacks, are more likely to understeer. AWD and 4WD vehicles vary, with some modern models built to mitigate either effect, but they generally tend toward understeering too. Smooth driving, especially when turning, and making sure you have the right tires for your roads (kept in good shape!) are the best way to avoid under or oversteering.Thinking about oversteer and understeer when buying a carIf you’re worried about having a vehicle that’s prone to understeering or oversteering, here’s what you need to know.Understeer is generally safer, so you probably don’t want a sports car or other rear wheel drive vehicle if you’re concerned.Choosing the right tires is as important as the make and model of your chosen vehicle.Driving safely and smoothly is a good way to generally avoid either effect under most circumstances, especially if you have well-maintained, weather-appropriate tires.Keeping your vehicle well-maintained so you know if anything isn’t quite right can also help and is always a good idea.You can look into any specific models you’re considering buying before signing to find out if they have a known tendency to over or understeer.Bonus tip: If you’re thinking about buying a vehicle, read our guide to dealership markups and negotiate to get a better rate.And that’s everything you need to know about understeer versus oversteer.Use this quick and handy guide to stay a little safer on the road and understand the mechanics of what happens when a vehicle understeers or oversteers.Paying too much on your vehicle loan?We’re Auto Approve, by the way. Auto Approve is your auto loan refinance partner, helping you find the best rate available to you and handling the paperwork to make lowering your monthly car payment quick and easy. Whether you’re thinking about a new vehicle or locked into a loan, when you’re ready to refinance, Auto Approve can help.Get your free, no-commitment quote right now.

Here’s the quick version of what you need to know. People typically get rejected when they apply for a vehicle loan for one of a few key reasons: Bad credit Too little credit Other financial issues, like a high debt-to-income ratio Application issues, like a typo in your social security number or missing backup documentation to prove your income (unverifiable income) If you’ve recently been rejected for an auto loan and aren’t sure why, you should receive or have received a letter, called an Adverse Action Notice, which details why you were rejected. While the reason may be unsatisfactory, it’s also the best guide you’ll get for how to avoid rejections in future.Vehicle Loan Application Denials: Your GuideIf you have ever applied for a car loan or auto refinance only to be rejected, you may feel disheartened (and maybe even a little bit confused). But all is not lost! Understanding why you were turned down can help you get approved in the future, and correcting any problems can even help you get a better car loan APR (annual percentage rate) than you’d otherwise have qualified for.In this guide, we’ll answer the follow frequently asked questions about car loan rejections:Why was I denied a car loan?What happens if you are denied a car loan?What should I do if I am denied or want to avoid a denied loan?Read on to learn more about why someone might get rejected for a car loan (and what you can do to avoid a rejection or make sure it doesn’t happen again).Why Was I Denied A Car Loan?Getting denied a car loan is not uncommon. There are quite a few reasons why it may happen to you, and there are always ways to fix your situation to ensure that you can get approved for a car loan in the future.Take a closer look at the 4 most common reasons for a car loan denial:Poor credit Application errorsDebtToo little credit Your Credit Score Is Poor.A poor credit score is the most common reason to be denied a car loan. Credit scores are broken down into the following categories:Exceptional (Super Prime): 800-850Very good (Prime): 740-799Good (Near Prime): 670-739Fair (Subprime): 580-669Very poor (Deep Subprime): 300-579 If your credit score is fair or very poor, you will most likely have a very difficult time getting approved for a car loan. A score of at least 620 is recommended to get approved for a car loan. The better your score is, the better the car loan APR you will be offered. There are auto lenders for people with poor credit scores, but they have high interest rates and tend to have more penalties and fees associated with them. There Were Errors In Your Application.It’s also relatively common to be denied for a car loan due to a simple error in your application. If you forgot to fill out a section or mistakenly answered a question, you may be denied a car loan. If your denial letter lists something that seems unfamiliar, you may want to take some time to double check that your application was accurate and complete.You Have A Large Amount Of Debt.If you have a high debt-to-income ratio, you may be denied a car loan. Lenders look not just at your income and credit score, but at the totality of what you owe, including mortgages, student loans, credit card debt, and more. If the amount you owe is relatively high when compared to how much income you bring in, lenders may see you as a risky applicant.You Don’t Have A Long Credit History.If you do not have a long credit history, lenders may be reluctant to loan you money for a car. There simply isn’t enough information to determine whether or not you are a good candidate for a loan.What Happens If You Are Denied A Car Loan?The good news is that getting denied a car loan doesn’t automatically hurt you (besides meaning that you do not have the new car you want). But if you are rejected for multiple loans that all pull hard inquiries on your credit report, that may lower your credit score slightly. Lenders are required to tell you why you were rejected for the loan. If they do not state the reason in the initial response, reach out and inquire. They have 60 days to respond (if they do not respond, they will be in breach of the Equal Credit Opportunity Act).It may take some work, but in most cases you can fix whatever caused you to be rejected in the first place.What Should I Do If I Am Denied, Or Want To Avoid A Denied Car Loan?If you are denied a car loan, there are several steps you can take to ensure you get approved the next time around. If you haven’t applied yet, but are worried about any of these factors, the remedies are the same.If You Were Denied Due To A Poor Credit Score.If you were denied a car loan because you have a poor credit score, you can work to improve your credit score for the next time you apply. Your credit score is based on five different categories:Your payment history (35%): Are your payments on time and in full? Your amounts owed (30%): How much debt are you in and how does that compare to the amount of credit you have available to you? The length of credit history (15%): How long have you had your accounts open?Your credit mix (10%): Do you have a healthy mix of accounts (such as a mortgage, credit card accounts, student loans, etc)?  Your new credit (10%): Do you have new accounts where you haven’t proven your ability to repay?There are many factors that go into your credit score, so taking the time to review your credit report will give you a good sense of what areas you can improve in. Improving your credit payment history is the most effective thing you can do to increase your score, as it has the largest weight for your credit score. You can improve this category by committing to making full and on-time payments to all of your accounts. Signing up for autopay is one great way to ensure you don’t miss a payment. But, if you’re already making on-time payments, there are lots of other steps you can take to improve your credit score and give you a better chance at getting approved for a car loan:Review your credit report for errors or mistakes.Request higher credit limits on your accounts. This will decrease your credit utilization ratio and improve your score.Pay down accounts that have high credit utilization ratios (the ratio of debt you are in compared to available credit).Catch up on any past due accounts. Consider contacting a credit counselor if this feels too overwhelming. They can design a debt repayment plan that will work for your budget.Limit applying for new accounts. These can trigger hard inquiries which can lower your score.Building your credit score takes time, but it is definitely worth it. Having a good credit score will help you get approved for loans, get better interest rates, and help you get better insurance rates.You Were Denied Because Of An Error In Your Application.Most of the time you can simply apply again, but be sure to double check that everything is correct the second time around. A common reason for this is something called unverifiable income – this means you need to provide more evidence of your income, like tax returns, recent pay stubs, or bank statements showing recurring deposits. Basically, you need to provide more paperwork.Pro Tip: If you’re applying to refinance, you can work with one of Auto Approve’s refinance experts and they’ll do the paperwork for you to avoid errors in future!You Were Denied Because You Have A Large Amount Of Debt.If you have a large amount of debt you should definitely prioritize paying some off before you put yourself in even more debt. There are several ways to achieve this depending on your circumstances.You can use the avalanche method, which involves paying off your debts by order of interest rates. By paying off your highest interest rate debts first, you will help save yourself further costs in interest. This is one of the most popular (and quickest) ways to pay off debt.You can use the snowball method, which involves paying off your debts by size, starting with the smallest amount first. This is great for your morale and can keep you motivated to pay off your debts.But whatever method you use should start with a solid budget. Creating a budget is the best way to organize your finances and can help show you where you can cut costs and save money. Contacting a debt consolidation service can also help you to get organized and keep on top of your payments.You Were Denied Because You Don’t Have A Long Credit History.This is a tricky one. There is no quick fix to getting approved if you do not have a long credit history. It can take you several years to build up your credit score. Getting a credit builder loan is a great step to take when getting started. Credit builder loans deposit money in a savings account, and once you pay off the balance the money is released to you. Your payments get reported to the credit bureaus and can give your credit score a good raise so long as you make full payments.Secured cards are another way to help build credit. These cards require you to deposit money in order to open an account. This is referred to as your security deposit. Paying the minimums on these accounts can help you establish credit.You can also consider applying for a car loan with a co-signer or co-borrower. When you apply with a co-signer, lenders take both of your credit histories into account. If your co-signer has a good score, you will have a much better chance of being approved for a loan. Additionally, making payments on your new car loan will help you build credit. A co-signed loan is in your name and you are responsible for payments, but your co-signer will be responsible if you default.You can also apply for a joint loan, where you and your counterpart will share equal responsibility for the loan (a co-borrower). Lenders will again consider both of your credit scores and histories when determining eligibility. Making payments will help you to build your credit, and you can finally get the car you’ve been wanting.While Getting Rejected For A Car Loan Can Be Disheartening, There Are Ways To Make Sure It Doesn’t Happen Again.Take steps like:Checking your credit report for issues and errorsChecking your application for errors or adding more documentation to support your listed incomeWorking to improve your credit scoreWorking to build your credit historyPaying down debts or asking to raise your credit limit to improve your debt-to-income ratio and credit utilization rateBringing on a co-borrower or co-signerOffering a bigger downpayment so you’re applying for a smaller loanAnd if you already have a car loan and are looking to refinance, Auto Approve can help! Get your free quote today to find out how much you could be saving.GET A QUOTE IN 60 SECONDS

You might be wondering: Does refinancing hurt your credit? Here’s the short answer: Auto refinancing will cause a slight temporary dip in your credit score when your credit is checked and you take out a new loan. However, refinancing can help you get a lower rate and/or lower your monthly payments, so it’s still worthwhile for many drivers—and can actually help your credit in the long run.Read on for a more in-depth look at refinancing, credit scores, and how and why refinancing can impact your score.How Auto Refinancing Can Affect Your Credit Score: The Complete GuideIf you’re thinking about refinancing your auto loan, it’s only natural to want to know what will happen to your credit score. After all, credit scores can seem confusing and complicated, and maintaining a good score can be crucial for many major life events.So, it’s important to understand how this financial move will affect your overall financial picture before deciding whether or not a refinance is right for you.In this guide to how refinancing can affect credit scores, we’ll discuss the following frequently asked questions about car loan refinancing and your credit score:What is auto refinancing?How are credit scores calculated?What is considered a good credit score?How will vehicle refinancing affect my credit score?How do you reduce the impact of refinancing on your credit score?Is refinancing worth it?What Is Auto Refinancing?Auto refinancing is when you pay off your existing car loan with a new car loan. Your new loan will ideally have more favorable terms that will ultimately save you money.To understand how vehicle refinancing will affect your credit, we will need to look at how credit scores are calculated.How Are Credit Scores Calculated?Credit scores are used to help lenders assess how likely you are to pay back your debts.Credit agencies typically look at five factors to determine your credit score:Payment historyAmounts owedCredit history lengthCredit mixNew creditHere’s a closer look.Payment HistoryThis is the most important factor in calculating your credit score, accounting for 35% of your FICO score. Do you have a history of on time payments? Lenders want to be sure you will pay back your debt on time.Amounts OwedThe amount of money you owe, your debts, are used to calculate your credit utilization score. This is the second most important factor in your credit score. This is calculated by dividing your total debt by your total credit limit. For example:Let's say, between all of your outstanding accounts, you currently owe $5,000. Your combined credit limit for all of these accounts is $50,000. 5,000 ÷ 50,000 = .1 = 10% Credit UtilizationA credit utilization score below 30% is considered desirable for lenders. This score accounts for 30% of your FICO score.Credit History LengthThe age of your credit accounts make up 15% of your FICO score. They look at the age of your oldest account, the age of your newest account, and the average age of all accounts. Having older accounts and a longer credit history is more favorable to lenders.Credit MixHaving a diverse assortment of accounts is beneficial to a high credit score. A healthy mix might include a mortgage, auto loan, student loan, and credit cards. This indicates to lenders that you can manage your money across multiple accounts. A healthy credit mix accounts for 10% of your credit score.New CreditThe number of new accounts you have opened plus the amount of hard inquiries you have had on your credit account for 10% of your credit score. People often ask, “how long do hard inquiries stay on your credit?”. The answer is about one year. If you have had a significant amount of inquiries in this time period, it might be a red flag for lenders.What Is Considered A Good Credit Score?Credit scores typically range from 350 to 850. 800 to 850: Excellent credit740 to 799: Very good credit670 to 739: Good credit580 to 669: Fair credit300 to 579: Poor creditPeople with the highest credit scores will more easily be approved for loans and credit applications, and will typically get the best interest rates and annual percentage rates (APRs). Using the above factors, credit bureaus calculate a credit score for every person with a credit history.How Will Vehicle Refinancing Affect My Credit Score?The short answer: Refinancing will cause a temporary dip in your credit score, but may help raise your credit score long term.The long answer: Here are the factors that determine how refinancing a vehicle will affect your credit score.Lower credit score (now):Hard credit checkCredit history lengthNew creditRaise credit score (later):Payment historyCredit mixAmounts owedHere’s the details.Refinancing will affect categories used to calculate your credit score: credit history length and new credit. Having a new account will negatively affect your credit history length, and the hard inquiries and new account will also affect the new credit category.However, it is important to note that hard inquiries only last a year on your credit score, so that will only be a temporary ding. Credit bureaus know that people contact multiple lenders when looking to open an account, so they allow a two week timeframe where all inquiries will count as one hard inquiry. In other words, don’t let fear of lowering your credit score hold you back from shopping around for the best rates.And, in the long term, having the loan that makes sense for you will make you more likely to make on-time payments, and once the credit checks are gone and the loan is no longer considered new credit, you’ll have a good mix of credit and build your credit history.How Do You Reduce The Impact of Refinancing On Your Credit Score?To reduce the impact that vehicle refinancing will have on your credit, be sure to:time your refinance to not come immediately before or after another hard credit check or new credit linedo research ahead so you know what you’re looking for and what will work for your budgetunderstand how credit scores are calculatedcomplete all of your applications in a short period of time (under two weeks) so that all hard inquiries will count as one inquiry in the allotted windowIs Refinancing Worth It?The short answer:Refinancing is worth it if:interest rates have gone downyour credit score has gone upyour budget is tightyou want to add or remove a co-borroweryour car is worth more that your loanThe long answer:This depends entirely on your situation, but it is often worthwhile to take a temporary hit on your credit score to improve your overall financial health. If you refinance and take a ding on your credit, the hard inquiry will only remain on your score for one year. The age of your accounts will also lengthen over time, so your credit history length will not be affected permanently. If refinancing makes it easier for you to keep up on your monthly payments, it may help your credit score in the long run.In short, should any of the following apply to you, it may be worth refinancing your vehicle:Interest Rates Are Going DownIf interest rates are trending downwards, it might be beneficial to refinance your car loan. Your overall savings will negate the temporary hit on your credit.Your Credit Score Has IncreasedIf your credit score has increased, you have a better chance of qualifying for a lower interest rate. Check your credit score at one or all of the three major credit agencies (Equifax, Experian, and TransUnion) and see how your current credit score compares to your score when you originally took out your auto loan.You Need Extra Cash Every MonthIf money is tight, refinancing might alleviate your monthly payments. If you are in danger of making late payments or defaulting on your loan, this will severely damage your credit score. It is far better to refinance and take a small hit than risk defaulting.You Need To Add Or Remove Someone As A Co-BorrowerIf you need to either remove or add a co-borrower to your loan, refinancing will allow you to do so.Your Car Is Retaining ValueIt is important that your car is retaining its value if you want to refinance. Owing more than the car is worth is called being “upside-down” in your loan. You will have a hard time finding a lender if this is your situation.Now You Know How Refinancing Your Auto Loan Will Affect Your CreditWhether or not it is worth it to refinance your car loan will depend on your situation, but the benefits of refinancing will often outweigh the dip that you might see on your credit score. If you are ready to start your refinance or want more guidance on whether or not a refinance is right for you and your unique financial position, Auto Approve can help.Get the ball rolling with a free, no-commitment quote to check your eligibility and see how much you can save, then work with one of our refinance experts to compare quotes and find the best deal for you.Get your free quote now.