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You’ve read countless ratings and reviews, you’ve combed over the specs and compared gas mileages, you’ve picked out the perfect color and trim. Now, you’re finally ready to pull the trigger on your car lease. But are you prepared to negotiate your lease? Do you know the lingo? Do you know what is worth fighting for and what isn’t? Don't sweat it – we’ve got you covered! Here’s everything you need to know about negotiating your car lease.Getting the Best Rate When You Lease a CarWhen you lease a car, you want to do your homework and thoroughly research the lease deals that are out there. Look around at different dealerships and compare the different offers. You can always use this information when negotiating to get more competitive deals.Here are the top factors you want to negotiate in your lease.Capitalized CostThe capitalized cost, also called the “cap cost”, is the agreed upon value of the car. It is essentially the sale price. This is a great place to start negotiating. Getting a lower cap cost will greatly reduce your loan payments. Check a few different websites to get a good idea of the car’s value. Sites like Kelley Blue Book and Consumer Reports are great places to start.Money FactorA money factor, or rent charge, is essentially the APR on the lease. Money factors are expressed as very small numbers (like .00275), so to make it easier to understand you can multiply the money factor by 2400 to give you an approximate APR (.00275 x 2400= 6.6%). Some dealers will claim that the money factor is non-negotiable, but that doesn’t mean you should just say yes and accept the number they give you. Money factors are set by lending institutions and are not easily changed, but some dealerships will add on to the money factor for additional profit. You want to be diligent and make sure that it is in line with what prevailing market rates are. Before you even set foot in a dealership, research what the current money factor range is.Lease TermThis isn’t really something that you have to “negotiate”, but it is something that you will have to decide. Leases usually range from 36-72 months, so you can decide how long you want to have this particular car. If you like to always have the newest car and technology, opting for a shorter lease is probably your best bet. If you are a creature of habit and prefer consistency, a longer lease term is probably preferable for you.Mileage AllowanceDepending on how much you drive, this might be a huge deal for you. Leases will always put a cap on the amount of miles you can put on your car and charge you when you go beyond your limit. It will most likely be cheaper for you to negotiate a change in terms upfront and get a larger mileage amount than to pay the overage fees. Sometimes the fees of going over the mileage limit are so outrageous that it makes sense to consider auto lease purchase. Which is Right for You: Lease vs. Buy (Car, Truck, or SUV)The biggest difference when it comes to lease vs. buy–car, truck, or SUV–is ultimately who owns the car. When you lease a car, it is owned by the dealership and you are paying to use it (think of it as renting a car). When you buy a car, you own it outright. If buying a car involves financing, the car is owned by the lender and once you finish making payments the car is yours.But what are some of the other differences when it comes to leasing vs. buying?PaymentsIn general, lease payments will be lower than financing payments. This is because you are paying for the time you are using the car and not the total value of the car. When you lease a car, you are paying for the depreciation of the car in the time that you are using it.MileageLeases almost always have mileage limits that you will be penalized if you go over. For example, if you go over 10,000 miles per year, you will be charged a certain amount per mile that you exceed. If you buy a car, there is no limit to your mileage. Wear and TearLeases will have terms that specify the condition of the car that must be returned. If there is anything that they deem to be beyond normal wear and tear, they will penalize you financially. If you buy the car, you do not need to worry about this (it’s yours after all!)CustomizationIf you lease a car, you will not be able to customize it in a way that you may want to. No aftermarket paint jobs or tinted windows–the car must be returned to the dealership in its original form. If you own the car, this is not something you need to worry about.MaintenanceWhen you buy a car, you are responsible for all maintenance and repairs. If it is not covered under your warranty, the bill is your responsibility. When you lease a car, some maintenance and repairs will be covered under the lease agreement (this can include oil changes as well).The Bottom LineWhen it comes to leasing vs. buying a car, it is highly dependent on the individual and their driving habits. If you like the idea of trading your car in every few years and starting fresh, leasing might be a good option. If you intend to keep your car for the long haul, buying will make more sense. And if you change your mind and want to keep your leased vehicle, there’s always auto lease purchase.Where To Find The Best Car Lease DealsIf leasing makes sense for your lifestyle, you are probably now wondering where you can find the best car lease deals. There is no one stop shop for finding the best lease deal. You will need to do your homework and shop around. The area you live in as well as your credit score will affect what deals are available to you. Check out sites like CarFax and Kelley Blue Book to find the best deals in your area. If you have a lease and you’ve gone over the terms (say you drove a few too many miles or you have quite a bit of wear and tear), you should consider an auto lease purchase. Auto Approve specializes in auto lease purchases, making it easy for you to finance your purchase. And that’s what you should consider when you negotiate a car lease.When you lease a car, you will have to make many decisions, from the length of the lease to your monthly budget allowance. But if you shop around and look for the best rates, you can get a lease that’s right for you.Want to purchase your current leased car? Auto Approve can help with that, too! GET A QUOTE IN 60 SECONDS

When the coronavirus hit headlines almost two years ago, the government delayed the repayment of student loans for millions of people to give them some economic reprieve. The Biden administration recently announced that they would extend the student loan payment delay to May 1st to give borrowers more time to adjust to repayment. This delayed repayment will affect about 27 million borrowers. So what does this mean for you and your finances?Here are our top tips for preparing for the restart of student payments.While student loans are deferred for the next few months, you should use this time to get your finances in order for when payments kick off again. Getting an organized budget and payment plan in place should be your top priority in this time period. Follow our tips below to make sure you are prepared.Contact your LenderFirst off, make sure your contact information is up to date with your lender. This will ensure that when things start back up you will not miss any payments. Missed payments can harshly affect your credit score. If you are unsure of who your lender is, go to StudentAid.gov and log into your account dashboard. The “My Loan Services” section will have the contact information that you need.Contact your lender to determine exactly when your next payment will be due. If you haven’t changed your repayment plan since the deferment started, your payment due date should be the same date of the month that it was previously. If you were enrolled in an automatic payment plan before the first pandemic deferment (March 2020), YOU WILL NEED TO OPT BACK IN. This is important; you do not want to assume that the payment will be made automatically. If you signed up for automatic payment after March 2020, you should still be on an automatic payment plan. But always double check to be sure. Again, missing payments can have disastrous effects on your credit score.You should receive a statement three weeks before your first payment is due. Revisit your BudgetYou may be wondering if you will be able to keep up with your monthly payments when the student loan repayment starts back up again. Now is a great time to restart (or start!) your budget. ExpensesTo start your budget, figure out all of your fixed expenses for the month. These are costs that do not vary from month to month and can include your rent or mortgage, car payment, cable bill, and internet, among others. Your student loan payment would fall into this category. Next figure out all of your variable expenses for the month. These are expenses that change from month to month. They might include your groceries, electric bill, and entertainment. Look at credit card statements or receipts to determine what your average expense is in each category.IncomeNext up look at your income. Include your full time job as well as any other additional income you may have from side jobs. Balance It OutOnce you see how much you have coming in every month vs. what you have going out every month, you can see how balanced your budget is. Do you have extra money every month? Great! You can put some of it in savings or an emergency fund, or set it aside to make additional student loan payments. If you do not have extra money every month but are instead in the red, see where you can make adjustments and cut spending. Consider making the following adjustments to your spending habits:Switch from name brand to generic when grocery shoppingCut out subscription services that you don’t need (Netflix, Hulu, HBO; what can you live without?)Be diligent about turning appliances off when you aren’t using them. Cut back on eating out and ordering takeoutAdditionally, auto refinancing might be a good way to reduce your monthly expenses. Refinancing to either a lower APR or extending the repayment plan of your car loan can affect your monthly payment a great deal. If you have a car loan, contact Auto Approve to get a quote and see how much money they can free up in your monthly budget.If you know that your student loan payments will be unmanageable, you should consider adjusting your payment plan. And for a more in-depth look at creating a budget, check out our blog post on budgeting 101.Look Ahead and Adjust Your Payment Plan (If Necessary)You should have a good idea of what your monthly payments will be when the deferment is over. And if you prepare a budget, you should have a good idea of what you are able to spend on your student loan every month. Look at your current student loan repayment plan and decide if you need to change to a different repayment method.Repayment plans are either calculated over a set period of time, or they are income driven. Let’s look at these in more depth.Fixed Time RepaymentYour repayment plan is most likely calculated over a set period of time. These can be broken down into three categories, each with different terms and conditions. Standard Repayment: Also known as fixed payment loans, this is the payment plan you will default to if you do not pick another type. Under this repayment you will pay a fixed amount every month of at least $50 for up to 10 years depending on the size of your loan. You will pay the least amount of interest under this plan and pay off your loan quickest.Graduated Repayment: Graduated repayment means that your payments will be lower in the beginning and increase as time goes on. This can be especially helpful when you first graduate, as you will expect to make more money as time goes on and you advance in your career.  Only certain loans are eligible for this type of repayment.  Extended Repayment: Under extended repayment, your monthly payments will be much lower but you will repay the total amount over a much longer time period. Switching from a standard repayment plan to either a graduated repayment or extended repayment may be a good option if you expect to have a difficult time making your current monthly payments.Income-Driven Repayment PlanIf you are having trouble with a fixed repayment schedule, you may be eligible to switch to an income-driven repayment plan. These repayment plans are based on how much money you earn, so they are especially helpful if you are not earning what you may have expected to earn. These loans also forgive your remaining balance after a set number of years. These repayment plans are complicated and have many rules, but if you can reconfigure your loan to an income-driven repayment, you may save yourself a lot of money in the long run.Deciding on a Repayment PlanIf you are wondering what repayment plan is best for you, there are tools out there that can help you decide. StudentAid.gov has a loan simulator that can help you decide which is best for you. Whether your goal is to reduce monthly payments or pay off your loan as soon as possible, the simulator will help you decide what you qualify for and what is the best option for you.Look into Deferment or Forbearance Only in EmergenciesWhen May comes and it’s time to restart payments, you may enter into panic mode and opt for deferment or forbearance. While these are options, it is important to remember that these should be used only in dire situations.What’s the difference between forbearance and deferment? In forbearance, your monthly payments will stop but interest will still accrue. In deferment, your interest will stop accruing for the time that your loan is deferred. Deference is definitely preferable to forbearance and can provide additional relief if you are in tough times. But remember that you will still be accountable for the money that you owe.Forbearance should always be a last resort and should only be used temporarily. If you have a large, unexpected bill (such as a large home repair or unexpected medical bill) forbearance might be your only option. But your loan will still accrue interest and your payments can balloon if you are not careful. Those are our top tips for preparing for the restart of student loan payments.The past few years have been financially difficult for so many people. It’s important to keep in mind however that help is available. Whether you need help with changing your repayment plan or need help with budgeting, there are resources available to help you determine the best path forward.If you need some extra breathing room in your budget, consider auto refinance. By lowering your APR or lengthening your repayment plan you may be able to free up money in your monthly budget. Set yourself up for success before the repayment starts and contact Auto Approve to get your free quote today!GET A QUOTE IN 60 SECONDS

If you are looking to refinance your car loan, you might have a lot of questions. On the top of that list is probably “Do I meet the requirements to refinance?” Car loan refinancing does have some requirements, but if you are eligible, you can save a whole lot of money by doing so.Here we will discuss some of the basic requirements to refinance a vehicle, help you decide when the time is right, and give you some tips on choosing the right car refinance company. So let’s dive into the ins and outs of car loan refinancing!The Basic Qualifications for a Car RefinanceWhen looking into car refinance, there are a few qualifications of which you should be aware. The specifics will vary from lender to lender, but in general these are the elements you may need to consider.Your Car’s Age and ConditionLenders will often have age limits and mileage limits on refinancing. Some lenders may not refinance your car if it is more than ten years old, or if it has more than 100,000 miles on it. Additionally, lenders will not refinance your loan if it is upside down, meaning that you owe more on your car than it is worth. If your car is a few years old and/or you drive a lot, you will need to keep this in mind while looking around at lenders. Depreciation is always something that you should keep an eye on while you are financing. Checking your car’s value routinely on a site such as Kelley Blue Book will help alert you if you are in danger of becoming upside down on your loan.The Time Left on your Current LoanThere may be requirements about how much time is remaining on your current loan. If there is less than a year left on your loan, lenders may not choose to approve you. This is because car loans are front-loaded amortized loans, meaning that the majority of the interest is paid in the beginning of the loan. As the loan nears the end of it’s time, you are paying less and less in interest and more and more in principal. At a certain point it is not worthwhile for a lender to refinance you, as they will not really be making any money off of you.Furthermore, your current loan may have prepayment penalties that may make refinancing difficult. If the prepayment penalties outweigh any savings from refinancing, it will probably not make sense to refinance even if you do qualify.Your CreditYour credit score is a major component of your refinancing requirements. A credit score shows a lender how likely a person is to pay back the money they are borrowing. Credit scores are comprised of five major components:Payment History (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 (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). Length of Credit History (15% of your credit score): The longer you have had credit, the higher your score will be.Credit Mix (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 (10% of your credit score): If you open new accounts or have hard inquiries into your credit, your score will decrease. If your credit score has dropped drastically since your initial financing, you may not qualify for refinancing. If your score has dropped a little since your initial financing, you may qualify, but not qualify for a good APR. You should always ensure that your credit score is in as good of a shape as possible before refinancing your loan. To do this, commit to making on time, consistent payments to all of your accounts. Work to pay down outstanding debts if at all possible. Additionally, try to hold off on opening any new accounts or signing up for anything that might trigger a hard inquiry. While only temporary, these inquiries and new accounts will cause your score to drop. Your Current PaymentsIn addition to your credit, lenders will look specifically to make sure that you are up to date on your payments with your current lender. After all, if you are not paying your current lender in full with consistency, why would they risk lending you money?Choosing the Right Time to Refinance CarTiming is incredibly important when it comes to refinance. Car loans will be most beneficial to refinance when the market values are low, your credit score is high, and you are towards the beginning and middle of your repayment.Low APRs You will be best served to look into refinancing when the market interest rates are low (like right now!) When interest rates are low in general, you will find much better rates available to you than when the market interest rates are high.Credit ScoreAs we discussed before, the higher your credit score is, the better of an interest rate you will be offered. Focus on increasing your credit score before approaching lenders.Repayment PeriodRefinancing your loan makes more sense when you are towards the beginning or middle of your loan. As we discussed before, car loans are amortized and front loaded. In the beginning of your loan, your payments go more towards the interest than towards the principal. This means that refinancing to a lower rate will be more beneficial when you are paying the most towards that interest, i.e. in the beginning of the loan.You will need to make sure that all of the paperwork is finalized on your initial financing before you apply for refinancing, which can take anywhere from 30-90 days. After that you can then refinance your loan immediately, technically speaking. Experts do however recommend waiting 6-12 months before refinancing. This will give your credit score a chance to recover from the hard inquiries of your initial loan. This will also give you time to make consistent, on-time payments on your initial financing, which will also help ensure you have the best credit possible (and you are therefore offered the best APR possible).But remember, the earlier you refinance, the more money you will be able to save. It’s all about finding the sweet spot when it is most beneficial AND you will score the best rates.Your Cash FlowIf current circumstances in your life have made your monthly budget tight, it might be a good idea to consider refinancing. Lengthening the repayment period of your loan will decrease your monthly payments by spreading them out, ultimately giving you some wiggle room in your budget. And if you can qualify for a lower APR on top of changing your repayment period, you may be able to save a good deal of money overall as well.How To Choose Between Car Refinance CompaniesIf the time seems right to pursue refinancing, you will now need to choose between car refinance companies. In general, you should apply to 3-5 lenders to get some competitive quotes. This will give you a chance to look at several offers and compare not only their rates, but their other terms as well (including repayment periods, prepayment penalties, etc). You should look at traditional banks as well as credit unions and online lenders. Until you actually apply, it’s hard to get an idea of what your rate or terms will look like.A great way to ensure you are getting competitive rates is to use a company that will do this legwork for you. Companies that specialize in auto refinance, like Auto Approve, already have relationships with lenders and can get you the best rates possible. By simply filling out an online quote form, we can get you a quote in minutes. Auto Approve will even handle the paperwork for you–DMV forms included. Auto Approve has a sterling reputation from the industry as well as from real life customers. We have an A+ rating from the Better Business Bureau and a 96% would-recommend rating from TrustPilot. Our customers know that we work tirelessly to find the best auto refinance rates and will never markup the prices–we pass the savings on directly to you.And that’s everything you need to know about refinancing a car loan.There are some things that you need to consider before you refinance your car. But if your car qualifies, the market rates are low, and your finances are in order, it might be a great idea to consider refinancing your vehicle. Customers who shop with Auto Approve save hundreds–sometimes thousands!–of dollars by refinancing their car loans. So if the time is right for you, don’t wait another minute to start saving money!GET A QUOTE IN 60 SECONDS

If you are like most people, you are more than likely overpaying on your car loan. Whether you got talked into a higher APR at the dealership, or your credit has simply improved, chances are there are lower rates out there that could be saving you loads of money every month. But don’t just take our word for it–in this article we will look at how auto refinance works and discuss why you should consider refinancing your vehicle.Refinancing is when you pay off your existing loan with a new loan that ideally has better terms. Auto refinance will get you out of the current financing relationship that you are in and let you start over with different terms that can change your APR, repayment terms, penalties, and other miscellaneous conditions of your loan. There are many reasons that auto refinance can benefit you.When Is The Best Time To Refinance Your Auto Loan?Like a lot of things in life, timing is everything. It is important to keep this in mind when you are thinking about refinance. Auto loan refinancing is certainly more beneficial at certain times than at others.When Can I Refinance? You are allowed to refinance at any point in your loan. You will however need to wait for any paperwork to be finalized on your initial loan, which can take anywhere from 30 to 90 days. But once everything is signed and filed, you are able to refinance. Experts recommend waiting 6-12 months before refinancing. There are a few reasons for this. First of all, this will give your credit score a chance to recover from the hard inquiries of your initial loan. When you apply for a new line of credit, your score will take a slight hit. It is best to wait until your score recovers from this. The better your credit score is, the better APR you will be offered. The second reason you should 6-12 months is to give yourself time to make consistent, on-time payments. If you can make full and timely payments on your auto loan, this will help improve your credit score. Again, the better your credit score, the better the APR you are offered will be. When is the Best Time to Refinance?There is definitely a sweet spot in your car financing timeline to think about auto refinancing. Car loans are amortized and “front-loaded”, which means that in the beginning your payments aren’t split evenly between your interest and your principal. Instead, you pay off more of the interest in the beginning than you do the principal. Let’s look at an amortization schedule to see how the first four monthly payments are divided.As time goes on, you pay less and less towards the interest and more and more towards the principal.This means that towards the end of your loan, you are mostly paying the principal and little of the interest. When you refinance, the money you are hoping to save comes from the savings in interest payments. So it is more beneficial to refinance when you have at least a year (preferably two years) left on your loan payments. This will make it the most beneficial for you.What Are the Other Benefits of Refinancing?Aside from saving money (which is probably reason enough), what are the other benefits to auto refinancing? For many, reducing monthly payments is a huge benefit. Even if you do not secure a substantially lower APR, refinancing allows you to change your repayment plans and stretch your payments over a longer period of time, which can loosen up your monthly budget significantly.Refinancing is also the only way you can add or remove a co-borrower from your vehicle. Whether you want to add your child on as a co-borrower to help them build credit or remove a co-borrower because you no longer need their financial assistance, refinancing is the way to achieve this. Are There Any Risks When Refinancing an Auto Loan?When you decide to pursue an auto loan refinance, you may be wondering what the risks are. Just as there are good times to refinance, there are also bad times when it will not make as much sense for you. So when is it a bad time to refinance and when do the risks outweigh the benefits? Your credit score has taken a hitIf your credit score has recently decreased, there’s a good chance you won’t be eligible for a lower APR. Maybe your credit score dropped because you have recently opened other accounts or you hit a rough patch and were not able to make consistent on time payments. No matter what the reason is, a lower credit score may make refinancing less beneficial.The market rates are highThe APRs that are offered are dictated in part by the market rates. If your prevailing interest rates are higher than when you originally financed your vehicle, you will most likely not find a better APR.You have significant prepayment penaltiesA major risk of refinancing is the prepayment penalties to which you may be bound. Read your loan contract carefully to determine what penalties you may have to pay if you choose to leave your lease early. The amount you will pay in penalties may outweigh your savings.You have less than a year left on your loanAs you near the end of your loan your payments will go against the principal more than the interest. You will ultimately not save much by lowering the APR, and you may not qualify for refinancing if the repayment term left is short.You need a high credit score for other reasonsIf you are trying to apply for a mortgage or need a high rating for another reason, remember that refinancing will cause a slight dip in your score. Refinancing will cause a hard inquiry into your account as well as change your credit history. While these shouldn’t be drastic hits, if you are applying for a mortgage it may cost you a slightly higher APR for that account.Your car value has taken a hitIf your car has deprecated a good deal you may not qualify for refinancing. Depreciation can occur for a number of reasons:Mileage. The more you drive your car, the more it depreciates. High mileage shortens the amount of usable time left on the car.Age. The older a car is, the less it’s worth. Even if it still drives perfectly, the fact that it is an older model will reduce the value.Make and Model. If you are driving a more popular model, your car will depreciate slower. Value is based on how much someone is willing to pay. The more people want your car, the more they will pay for it. If you have a less desirable car, expect your car to depreciate at a faster rate.Condition. If your car has been in a few accidents or hasn’t been consistently maintained, it’s value may be depreciated. If depreciation lowers your car value significantly, refinancing might not be an option for you.Who Has The Best Auto Refinance Rates?If auto refinance sounds like it might be a good option for you, you now need to figure out when you can find the best auto refinance rates. It is incredibly important to shop around for rates when you are looking to refinance. You should do research to determine what your options are, trying to select 3-5 lenders to apply to. You will not have a good idea of what the terms are or what APR you qualify for until you actually apply. The most efficient way to shop around and find the best auto refinance rates is to use a company that will do the legwork for you. Companies that specialize in auto refinance, like Auto Approve, have editing relationships with lenders and can streamline the application process for you. By simply filling out an online quote form, they can get you a quote in minutes. They can handle all of the paperwork too (yes, even the DMV forms). When looking for a lender, you want someone that you can trust. With an A+ rating from the Better Business Bureau and a 96% would-recommend rating from TrustPilot, you don’t need to take it from us. Our customers know that we find the best auto refinance rates and will never markup the prices–we pass the savings on directly to you.And those are the reasons that you should consider an auto refinance.There are so many benefits to vehicle refinancing, from allowing you to lower your APR to reducing your monthly payments. Still have questions? Contact us today to get started!GET A QUOTE IN 60 SECONDS

Looking to refinance? Car loan payments can easily overwhelm your monthly budget, and as we head into the new year you may be looking to give your finances a tune-up. But what if your credit score is less than ideal? Is refinancing your car loan even an option? At Auto Approve, we’re here to help and answer all of your questions about refinancing with bad credit and help you get the best refinance rates possible.What's Considered A Good or Bad Credit Score?What do we mean by “bad credit”, and how important is it in terms of refinance? Car, SUV, and truck refinance are more beneficial when you have an increased credit score. Before we dive into refinancing, let’s look at how credit scores are calculated and what is considered a good or bad credit score. Your Credit ScoreCredit scores are used by lenders to determine how likely a person is to pay back their debts.These scores are calculated based on five metrics: Payment History (Your history of on-time, full payments)Amounts Owed (The amount of money you owe vs how much credit you have available to you)Credit History Length (The age of your credit accounts)Credit Mix (The diversity or assortment of your debts)New Credit (The number of new accounts you have opened plus the amount of hard inquiries you have)All of these metrics are important to your credit score, but your payment history and your amounts owed weigh the heaviest and matter the most to your credit score.What’s Considered a Bad Credit ScoreCredit scores range from 350 to 850 and fall in the following brackets:800 to 850: Excellent credit740 to 799: Very good credit670 to 739: Good credit580 to 669: Fair credit300 to 579: Poor creditIf you have fair credit or poor credit, you are considered to be less desirable (this is considered “bad credit”). People with the highest credit scores (740 and above, typically) will more easily be approved for loans and credit applications, and will typically get the best interest rates and APRs. Why Is a Good Credit Score ImportantHaving a good credit score is vital for a number of reasons. Having a good credit score shows lenders that you are reliable and pay back your debts in a timely manner. A good credit score will give you:Lower interest rates on credit cards and loansBetter chance for credit card and loan approvalHigher credit limitsBetter insurance ratesEasier approval for rentalsMore negotiating power for loans and accountsWorking to secure a good credit score will pay off a lot in the long run, especially when it comes to refinance. Car, SUV, and truck refinancing can be incredibly beneficial if your credit score has increased. How Refinancing Can Affect Your Credit ScoreWhen you refinance your car, it will affect two of your credit categories: Credit History Length and New Credit. Since you are closing one account (the old loan which you are paying off) and opening a new one, it will reduce the score of your credit history. But credit history only makes up for 15% of your score and as the account ages, this number will improve.Your New Credit will also take a hit, from the new account you are opening plus the hard inquiries that are made on your credit. Be sure to apply to all of your lenders within a fourteen day period–this is the grace period that credit bureaus allow for inquiries. This means that all inquiries within that timeframe will count as one hard inquiry against your credit. Hard inquiries only stay on your credit report for a year, so it is only a temporary ding. New Credit only accounts for 10% of your credit score, so it is not a major component.Is it Possible to Refinance a Car Loan When You Have Bad Credit?While it always depends on your specific situation, it may be possible to refinance car loans if your credit is less than stellar. That said, it may make more sense to try to improve your credit before looking to refinance. If you are considering car refinance, think about what your goal is and how you can best achieve it.Is the goal of refinancing to make lower monthly payments? Is it to save money overall with a lower APR? Do you need to add or remove a co-borrower? If your credit has not improved since your initial loan, you may not be eligible for a lower APR. But if your ultimate goal is to reduce your monthly payments, changing the terms of your financing might still be an option. By extending the length of your loan, you will stretch out the payments over a longer period of time, therefore reducing your monthly payments.If your goal is to add or remove a co-borrower, you will need to refinance. You cannot make big changes like that to your loan, so it is necessary to refinance your car loan. Adding a co-borrower with good credit may qualify you for a better rate when you do refinance.The reality is, most lenders won't refinance with someone who has truly bad credit, so it's usually best to work on your personal finances and get your credit score up before applying. At Auto Approve, we can't offer many services for those with bad credit, but if you're on the fence and want to know if you'd be eligible for a better rate, you can always get a quote to find out. Getting a quote is free and doesn't require a credit check.How Do You Improve Your Credit to Refinance?In most cases, it will make sense to work on improving your credit before refinancing. Car refinance companies will be able to offer you better rates if your credit score has increased since your initial financing. As we mentioned before, people with the highest credit scores will more easily be approved for loans and credit applications, and will typically get the best interest rates and APRs. If you are interested in improving your credit score, try some of our tips below.Check Your Credit ReportWhen was the last time you checked your credit report? You should aim to check your credit report three times per year. You are allowed to check for free once a year at each of the three major credit reporting agencies, Equifax, Experian, and TransUnion. Be sure to take advantage of this and stay on top of your credit.When you get your report, review it thoroughly for errors or mistakes. There could be incorrect missed payments or other discrepancies that may be unfairly dragging down your credit. If you notice an error, report it immediately. The agencies have 30 days to look into your claim, so give yourself some time. Finding and correcting errors in your credit report may instantly improve your credit score.Work on Making Consistent PaymentsThe most influential and important part of your credit score is your payment history. Your payment history makes up 35% of your credit score. Do you always make your payments on time, or do they tend to be late? Are your payments full, or do they come up a bit short every now and then? Commit to being consistent with your payments and your score will increase. Cut back on eating out or think about canceling some unnecessary subscriptions to free up some room in your monthly budget. Six to eight months of consistency is usually enough to make a noticeable difference. Pay Down Existing DebtAnother key factor of your credit score is your amount owed, which makes up 30% of your credit score. This is also referred to as your credit utilization ratio (the amount of money you owe in relation to how much credit you have available to you). Try to pay a little extra every month (or a lot extra, if you are able). This extra money will go towards your principal and save you a good amount on interest payments. If you are able to pay this debt down through budgeting, it can greatly help your credit score. Avoid Opening New Lines of CreditResist any offers to open a new store credit card or another account. While these new credit lines don’t make huge impacts on your score, they can drag you down by ten or twenty points. That could be the difference between a good APR and a great APR.What To Do When Your Credit Has ImprovedOnce your credit score has improved, you will have a much better chance of securing better terms for your refinance. Contact multiple credit unions, traditional banks, and online lenders to start getting quotes and rates. You should aim to apply to 3-5 lenders to get some competitive rates. You can also look into car refinance companies that specialize in auto refinancing. The key to getting a good rate is shopping around. Be sure to apply to all of your lenders in the same fourteen day window. This will ensure that all of your hard inquiries will count as one hit on your credit report. At Auto Approve, we take care of this legwork for you. We know which lenders to reach out to and can handle the tedious paperwork so you don’t have to. While it may be possible to refinance a car with bad credit, it's usually more beneficial to work on improving your credit score beforehand to secure better terms.Working to get a healthy credit score is beneficial in a lot of ways and can help you to refinance and save money. At Auto Approve, we are here to help! Once your credit it in a good place, we can guide you through the process and handle the legwork so you don’t have to. And if you're not sure whether or not you're ready to refinance, getting a quote to see your options is free. So don’t wait to find out if you can start saving money!GET A QUOTE IN 60 SECONDS

If you are unhappy with your current auto loan, an auto refinance might be a great option for you.Whether you are looking to lower your monthly payments or lower your APR, you can save a lot of money in the short and long term by refinancing your car loan. Let’s look at how auto refinancing works and see just how much money you may be able to save. Looking To Refinance Your Auto Loan? Here's How It WorksFirst things first, what does it mean to refinance? Auto loan, mortgage, and student loan refinancing are all similar, in that you are paying off your existing loan with a new loan.Ideally, your new loan will give you better terms. Whether those better terms are a lower APR, a longer repayment period, or an added co-borrower depends on what your goals in refinancing are.When you refinance, you will apply to various lenders to find the best rates and terms available to you. You can simplify this by going Auto Approve who will do the shopping around and comparing on your behalf. What Are The Benefits of Refinancing Your Auto Loan?There are a few major changes that refinancing can provide for you. But how much money can these changes save you?Lower APROne of the main reasons people look into auto loan refinance is to get a lower APR. There are a number of reasons why people may now qualify for a lower APR now than when they originally financed their loan. These reasons could include:Improved Credit Score - You might have a much better credit score now. This could be the result of consistent, on time payments and the paying down of debt.Initial Bad APR - If you had bad timing with your original loan and got an initial less than desirable APR, a lower rate might be possible.Better Market Rates - If the national APRs are lower than when you originally financed your car, a lower rate may be possible.Whatever your reason is, securing a lower APR can save you a lot of money. Let’s say you initially financed $25,000 of your new car at an APR of 6% for a 5 year term. Your monthly payments would be $483.32. You would pay a total of $28,999.20 at the end of your 5 years.If you were able to reduce that APR to 3.4% over the same period, your monthly payments would be $453.67. Over the course of 5 years you would pay $27,220.20. The lower interest rate would save you nearly $2000. Lower Monthly PaymentsIf you are able to reduce your APR, you will be able to secure lower monthly payments. But that’s not the only way auto loan refinance can reduce your monthly payments. Lengthening your repayment period can also reduce your monthly payments.If you initially finance a car at 5% APR for $20,000 principal over a term of 3 years, your monthly payments will be $599.42. Over the course of 3 years you will pay $21,579.12.If you finance at the same 5% APR but spread that over 5 years, your monthly payments will be $377.42. Over the course of 5 years you will pay $22,645.20. You will end up spending more overall, but if your goal is to cut down on your monthly bills, lengthening your repayment period would cut your bills significantly. Adding a Co-BorrowerIf your credit hasn’t increased, or hasn’t increased enough to secure a lower APR, adding a co-borrower might be a good idea. You cannot add or remove people from an existing loan, but auto loan refinance allows you to add or remove a co-borrower. The lender will consider your combined credit scores, so if you have someone in your life who has very healthy financials, adding them to your refinance might be a good idea. This can qualify you for a lower APR, which can save you thousands of dollars in the long run.Removing a Co-BorrowerIf you are in a better financial situation than you were previously and no longer need a co-borrower, the only way to remove them from the loan is through auto loan refinance. You Want a New LenderIf you are unhappy with your current lender, auto loan refinance is a good way to terminate that relationship and start a new one. The most common complaints about financing companies often center around communication issues and a lack of transparency as to where your payments are actually going and being allocated. If this is something you are experiencing, you can get out of your current situation and refinance with a company that has higher customer satisfaction.How Much Can You Actually Save By Refinancing Your Vehicle?In short? You can save thousands! The relatively conservative examples we gave above showed how the people in the examples could save $1,779 by refinancing to a lower APR and $1,066 by refinancing to shorter payment terms. But to find out how much you in particular can save, you can use the Savings Calculator on our homepage to get a rough idea or use our quick and free quoting form to find out more specifically how we can save you a bundle of money.What Kind of Credit Do I Need To Apply for Auto Refinancing?You may be wondering “What credit score do I need to refinance my car?” While there is no magic number, it’s true that having a good credit score will help save you more money when you refinance. While it may be technically possible to refinance with poor credit, it is much more beneficial to do so when your credit score is higher (and, with Auto Approve, you're unlikely to have many, if any, options).A good credit score is important for many reasons. Credit scores indicate to lenders and auto refinance companies how likely a person is to pay back their debts. Having a good credit score will get you better interest rates on credit cards and loans, higher credit limits, better insurance rates, easier approvals for rentals, a better chance at credit approvals, and gives you more negotiating power when securing accounts.Securing a lower APR is the key to saving the most amount of money, as we see in our examples. The key to securing a lower APR is to have good credit and good timing–the market rates have a good amount of sway over the APR you will be offered. While it may be possible to refinance with a low credit score, doing so will probably not save you money in the long run. You will most likely not qualify for a lower APR, so the main benefit would be changing your repayment term. If you lengthen your repayment term, you can reduce your monthly payments even if the APR remains the same. If you are drowning financially and need some extra breathing room, this might be an option for you. But refinancing will always be most beneficial if your credit score has increased and you are creditworthy.And that is how refinancing your auto loan can save you a lot of money.If you are unhappy with your current financing, refinancing might be a great option for you. Auto Approve is dedicated to finding you the best refinance rates. And with an A+ rating from the Better Business Bureau, you know you’re in good hands.GET A QUOTE IN 60 SECONDS

Looking for a lender? We can help.You've come to a point where you know the what and why of refinancing your vehicle. You know that refinancing your auto loan can lower your interest rate, reduce your monthly payments, and reduce the amount of money you are paying overall. And you know that the low interest rates on offer today make it an excellent time to refinance your auto loan. But how do you know which lender is the best option for refinancing? Well, have no fear, because we’re here to help! In this blog, we will review how to get started with the refinance process and go over what you should be looking at when you are comparing lenders. Here’s how to pick the best lender for your auto loan refinance.When you decide to refinance your auto loan, it’s important to look around and compare your options with different lenders. The higher your credit score is, the more options you will have when it comes to refinancing. But no matter what your credentials are, you should never settle or agree to terms that are not beneficial for you. Here are the top things to consider when choosing a refinancing lender.Getting Started with Your Vehicle RefinanceYou won’t have a really good idea of what terms you are comparing until you actually get the ball rolling for your refinancing. You should gather quotes from a wide variety of lenders, then aim to apply for refinancing with three to five different lenders. This will give you a number of options, as well as give you some negotiating power. Start by looking around at a dozen or so lenders and whittle your list down from there. Look at credit unions, traditional banks, and online lenders. Keep your eyes open for deals, and then try to get your list down to three to five lenders.When you are ready to start applying, make sure you fill out all of your applications quickly. When you apply for a new account it will trigger a hard inquiry on your credit report which temporarily lowers your credit score. Apply to all of your lenders in the same 14 day period so that they will all be counted as one hard inquiry (credit bureaus allow this window for this exact reason).Or, if this all sounds intimidating, you can simply use Auto Approve, and we'll do all the legwork for you! With Auto Approve, you can get a free quote in minutes, and one of our trusted Auto Approve advisors will help talk you through your options to make sure you get the refinancing that's right for you. Using a service like ours is more efficient and gives you a guide to the process who knows vehicle refinancing through and through. This will save you a lot of time and frustration (trust us, we know!).At Auto Approve, we handle the work of shopping around for you. No need to go from bank to bank asking the same questions and filling out the same forms–we handle all of that for you. All you need to do is fill out our quote form, and we will help you go through your options, then apply to your top lender (or lenders) on your behalf. Plus, our established relationship with lenders means that you will get the best APRs available.Once your refinance offers start rolling in, here are some things to compare. Interest RatesOne of the most important factors in refinancing is the interest rate. After all, the point of refinancing is to save you money. The interest rate that you are offered will be based on a number of factors, including but not limited to:Your credit scoreYour payment historyYour incomeYour debt-utilization ratioPrevailing interest ratesThe interest rates you are offered can vary greatly based on the lender, so you should be sure to check interest rates when comparing options.If you have made 6-12 months worth of steady loan payments, your credit score has likely increased since you first financed your vehicle and therefore the interest rate you are offered may be much better.Your Cash Flow and the Payment TermsYou might be offered a few different rates that are tied to different payment periods. A lower APR might be tied to a shorter payment period of 24 months, while a higher APR may be tied to a longer payment period of 48 months. The shorter payment period will mean that your monthly payments are on the more expensive side, while a longer payment period will mean that your monthly payments are on the less expensive side. What is more desirable given your current situation? This can make for a significant swing in your monthly budget, so be sure to think this decision through thoroughly.Prepayment PenaltiesRead the fine print in each refinancing offer. Are there prepayment penalties associated with paying off your loan early? If you are thinking that refinancing again might be an option in the future (there is no limit to the number of times you can refinance a loan), this may persuade you one way or another. These prepayment penalties can vary widely from lender to lender and be quite expensive at times.Customer Satisfaction RatingsWhat are their current clients saying? Are these good and reputable lenders, or are their customers dissatisfied with their services? Check out websites like TrustPilot, Better Business Bureau, and Lending Tree and see what some common complaints are. According to Consumer Financial Protection Bureau, these are the top complaints with lenders: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 principalComplaints with lenders often center around communication issues and a lack of transparency as to where your payments are actually going and being allocated. These complaints should be taken seriously, as hidden fees can add up to some serious dough. Learn from the experiences of others and steer clear of problematic lenders.(All that said, when you use Auto Approve for your refinance, you get access to some of the best and most trusted lenders in the biz!)Hidden FeesLook over the terms of your loan contract very closely. What other fees may be associated with your refinancing? See if any of the following fees are charged by the lenders:Application feesProcessing fee Administrative feesA lender may charge one or all of these fees, and the terms might be used interchangeably. They are often considered the cost of doing business, but it’s always worth it to compare these fees to get the best final price. If you're feeling brave and are a desirable potential loan recipient, you can even push to see if potential lenders will waive any of these fees to win your business. But don't tell them we told you that.Those are our top tips for deciding which lender is the best for your car refinancing.We know how overwhelming the prospect of refinancing can feel. But don’t let paperwork or pushy salesmen intimidate you. At Auto Approve, we make the refinancing process as simple and seamless as possible (we even handle the DMV paperwork for you!).So skip the struggle and don’t go through this process alone. Get started with Auto Approve today so we can be your partners and advocates in refinancing. With an A+ rating from the Better Business Bureau and a 96% would-recommend rating on Lending Tree, you know you will be in good hands. GET A QUOTE IN 60 SECONDS

We could all use a little extra cash in our pockets, right? But how exactly can we make that happen, especially when the cost of everything these days seems to just be going up and up? Enter refinancing! Refinancing your car loan might just be the answer to your financial quandary. That's why, in this article, we'll be looking at what refinancing is, why you should consider refinancing, and why you should refinance your loan with Auto Approve in particular.Let’s look at why you should refinance your vehicle with Auto Approve.What is refinancing?Before we get into why you should refinance with Auto Approve, we should probably take a look at refinancing itself.What exactly is refinancing? Refinancing is when you pay off an existing loan with a new loan that ideally has better terms, such as a better interest rate or better payment schedule. You are essentially replacing your existing auto loan with a new loan that will better fit your budget. Why should I refinance my loan?There are lots of reasons that people choose to refinance. Some people want to take advantage of low interest rates, while others want to add a co-borrower or lower their monthly payment. Let’s take a look at some of the top reasons you may want to refinance your auto loan.Your credit score has improvedIf your credit score has increased since you initially took out your vehicle loan, you may qualify for a much lower interest rate (which can translate to saving you a bunch of money). When you apply for a loan, lenders look at a lot of your personal information, including your job, income, and address. But nothing that they look at is more important than your credit score. Your credit score indicates how likely a person is to repay their loan. We must remember: lenders are in the business of making money. The last thing they want to do is lend money to someone who is not going to pay them back, or not pay them back on time. A good credit score tells them that you are a good candidate who pays their bills and pays them on time. Credit scores are determined by five major factors: Payment History. Do you pay your bills on time? Accounts Owed. Also called your credit utilization ratio. How much money do you owe vs. how much credit do you have available to you?Length of Credit History. How long have you had your accounts? Credit Mix. Do you have a good mix of retail accounts such as credit cards, loans, and mortgages?New Credit. Are you opening a bunch of new accounts?The most important factors are your payment history and your accounts owed. If you have become better at making on time payments or have been able to pay down a considerable amount of your debt, your credit score may have increased dramatically since the last time you financed your vehicle.Check your credit score and your credit report to see if your score has increased. If it has, you may be eligible for a much better interest rate when you refinance your car loan.The interest rates are lowWhen interest rates are low across the board, it’s a good time to think about refinancing. If your interest rate was a bit steep when you first got your car, today’s low interest rates may save you a ton of money. Even if your credit score has remained the same, the prevailing interest rates might still be lower than your original rate. Right now interest rates are low, making it a great time to consider refinancing.You need help with monthly paymentsMaybe your cash flow is a bit tight these days. Your job cut back on your hours, or you had some unexpected expenses pop up. No matter what the reason is, we’ve all had times when we could use a little more breathing room in our budget. Refinancing can help in a few ways. First off, if you can get a lower interest rate, you will pay less in interest every month and ultimately have lower monthly loan payments. Additionally you can adjust your payment periods to change the amount you pay per month. If your original payment period was 36 months, refinancing to a 48 month pay period will stretch out your payments over a longer period of time, therefore reducing the monthly amount. You may ultimately spend a bit more overall since you will be paying interest over a longer time period, but this might be worth it depending on your current cash flow situation.You want to add or remove a co-borrowerIf you want to change the ownership of the loan, you must refinance in order to do so. Lenders will not simply add or remove a person from a loan without starting over. This is because every loan decision is made by looking specifically at each borrower’s situation, and changing any of the dynamics will ultimately change the likelihood of repayment (in their eyes, anyway).Because of this, you must refinance if you want to add your son to your truck loan (he’s always had his eye on it) or you want to remove your ex from your SUV (he can find his own ride, no?).Why should I use Auto Approve to refinance?So now we know why refinancing your loan might be a good move for you, but why should you trust Auto Approve?We take refinancing personally, and our customers love us for itWe know how big of a decision refinancing can be, and that’s why we have a dedicated team to help you. When you get in touch, we give you a real person to talk to – no robots or automated messages when we are dealing with a decision this big. Just read through our reviews to hear how much our customers love working with our dedicated team of professionals. “Mitch was great and helped me out through the whole process. Glad I was able to refinance my vehicle with Auto Approve” -Nicholas E“I spoke with Casey, who was very helpful and patient through the whole process. Auto Approve saved me $100 a month on my car payment and a full percentage point on financing. Thanks for all your help, Casey!” -Kathy“Payments went down $169 dollars a month along with interest almost cut in half. I couldn't be happier. Peter my rep was AWESOME and was with me through the whole process. Kudos to auto-approve.” -Jonathon SWe work with you personally to ensure you are getting the best rates possible. Whether you are dealing with Shawn, Casey, Jake, Robert, or any of our other financing experts, rest assured you are in good hands.We are honored to have a 4.7 out of 5 star review on TrustPilot, an A+ rating from the Better Business Bureau, and a 96% would-recommend rating on Lending Tree. We have a fast turn-aroundRead our reviews and you will see read the same thing over and over again: “I can’t believe how fast it was!” That’s because we value your business and know that your time is important. When you contact us, we get to work immediately contacting lenders and comparing rates for you. When you decide on a refinancing loan that looks good to you, we get the papers together so all you have to do is sign online. We even handle the pesky DMV paperwork. So if you want to skip the headache and the lingering paperwork, contacting Auto Approve is sure to be a good move.We shop around for deals so you don’t have toHave you ever shopped around online for deals? Of course you have, so you know how time consuming it can be to compare this to that to that over there. It can be so tedious and we know there’s plenty of other things you would rather be doing. So save yourself the time and frustration and let us shop around so you don’t have to.We have relationships with lenders so that we can get you quotes fast. We then compile everything for you to look at so making a decision is as easy as possible. We never mark up pricesWe guarantee no markups and no hidden fees, which is more than we can say for our competitors. Some companies will actually mark up the rates and pocket the difference, but that’s not how we do business. We pride ourselves on being open and honest with our customers, so what you see is what you get. We pass the savings right on to you. And that’s why you should refinance your auto loan with Auto Approve.Whether you’re looking to reduce your monthly payments or add your kid onto your loan to help them build credit, now is a great time to refinance. And with Auto Approve, you are in good hands. From our stellar customer service to our unbeatable prices, we are here to help drivers like you save money.If you’re thinking about refinancing, contact us today to get started! Getting a quote is free and takes less than five minutes – so what are you waiting for?GET A QUOTE IN 60 SECONDS

Do your resolutions include putting work into improving your finances? If you're resolving to give your financial situation a boost in 2022, you've come to the right placeThe beginning of a new year means we are all gearing up for new possibilities, starting new habits, and creating new resolutions to make 2022 the best year yet. But for better or for worse, our finances don’t automatically reset when the clock strikes midnight. That’s why we’ve gathered up our top five personal finance tips so that you can start off your new year on the right foot. Here are our top five person finance tips for the new year.Tip Number 1: Create a budgetIf you’ve never had a budget (or never had one that you have stuck to), start 2022 off with a monthly budget. Creating a realistic budget that you can stick to is the best way to pay off debt or start saving. The best part is that budgeting is actually super easy! Step 1: Determine Your Fixed ExpensesFixed expenses are your expenses that do not change from month to month. They occur every month with a predictable payment that is due. This can include your rent or mortgage, car payment, cable bill, trash collection, subscription services, internet, phone, child care, and student loans. Start a spreadsheet and enter everything under “Outgoing”.Step 2: Determine Your Variable ExpensesVariable expenses are your expenses that do change from month to month for a variety of reasons. These expenses might include your groceries, electric bill, parking fees, dining out, entertainment, and home repairs. Look at your past credit card bills or receipts to figure out (approximately) how much you pay each month for each of these categories. Enter these expenses under “Outgoing” as well.Step 3: Determine Your IncomeThis should be fairly easy. Log your take home income (post tax always; any refunds that you get should be treated like a bonus or found money; never count on money to come back into your hands once it leaves your paycheck). Add in any extra income you may have. This could include a side business, dividends, or rent that you collect. Enter these in your spreadsheet as “Incoming”.Step 4: Compare the incoming and the outgoingAdd them up and compare. Are you bringing in more than you are spending? Fantastic! In that case, look to see where you can invest this extra money. Maybe you can use it to pay off your credit card or start building your emergency fund. Whatever your goal is, make sure to include this as a line item in your expense budget. By doing this, you no longer have “an extra $200 laying around” – instead you have “$200 that is going right into savings”. On the flipside, maybe you are spending more money than you are bringing in. If this is the case, look for places to cut your expenses. Are there subscription services you can cancel? Can you eat out twice a month instead of four times a month? Can you switch from brand name cereal to generic? Look for any and all places where you can sacrifice to make some changes. Little cuts here and there can add up to big savings in the long run.Creating a budget is our number one tip for starting the new year off right. The most important thing is to be honest about your expenses and to keep track of your incoming and outgoing faithfully. Tip Number 2: Aim to SaveSaving more money is oftentimes a top resolution for people. Whether it’s to build a safety net, add to their retirement, or save up for a down payment, saving more money is a great goal for the new year. Creating a budget and adding in a savings line is a great first step. Look into opening a new savings account. Do some research about the different accounts out there and what fits your needs the best. Perhaps a simple savings account at your local bank will suffice, or maybe a money market account will give you a little more bang for your buck. If you want to tuck your money away where you won’t be tempted to touch it, a CD (certificate of deposit) account might be the best option. No matter what account you select, making a commitment to save more will pay off in the long run if you stick with it.Tip Number 3: Commit to Increasing your Credit ScoreHaving a good credit score is vital for a number of reasons. Some of these top reasons include:Lower interest rates on credit cards and loansBetter chance for credit card and loan approvalHigher credit limitsBetter insurance ratesEasier approval for rentalsMore negotiating power for loans and accountsHaving a good credit score quite simply makes you a more desirable candidate. Prioritizing a better score will open up more opportunities and can save you a good deal of money in the long run. To increase your credit score, focus on making full, on-time payments. This is one of the top ways to affect your score in a positive way. Avoid opening new lines of credit and try to pay down as much of your debt as you can (remember that budget we were talking about? Include this as part of your budget to ensure you pay down extra every month). Your credit history – do you make on time consistent payments? – and your credit utilization score – how much debt are you in compared to credit you have available to you? – are the two most important factors in your credit score. Focus on improving these and you can easily increase your credit score within the year.There are five ranges of credit scores:Exceptional: 800 to 850Very good: 740 to 799Good: 670 to 739Fair: 580 to 669Poor: 300 to 579Depending on what your current score is, try to move to the next bracket in 2022. Aiming for a score of 700 or above will open you to a lot more financial opportunities.Tip Number 4: Sign Up for a Credit Monitoring or Identity Theft Protection ProductKeeping an eye on your credit is hugely important in the world of finance. If someone gets a hold of your identity it can be an absolute nightmare to sort out. Signing up for credit monitoring or an identity theft protection plan is a great way to ensure you are never put into this position.While most products out there have a monthly cost associated with them, there are a number of free monitoring products. Services such as Credit Karma and Capital One’s CreditWise offer free monitoring and will alert you to any unusual activity with your social security number. These services cannot protect you from identity theft, but the earlier you catch a potential problem, the easier it is to report and nip in the bud.If you are still hesitant to sign up for monitoring, commit to checking your credit report frequently. Here are the top things in your credit report to keep an eye on: New account openings, including credit cards and loansName or address changes in your credit fileUpdated public records, including court dates and bankruptciesUnpaid accounts sent to collectionsHard credit inquiriesIf anything is incorrect or misreported, be sure to report these errors to the credit agencies immediately. Again, the sooner you report a problem the less of a hassle it will be in the long term. You can check your credit report up to three times per year for free, so be sure to check every few months.Tip Number 5: Refinance your Car LoanRefinancing your car loan can help with almost any financial situation. If your expenses are a bit too high every month, refinancing to a lower interest rate and/or lengthening your credit payments can reduce your loan payment drastically. If you're looking to save in the long run, a lower interest rate and/or shorter payment period can save you hundreds or even thousands of dollars.Refinancing can also help improve your credit score over time by making your payments more manageable, therefore making you more likely to pay them in full and on time. Interest rates are low as we enter the new year, and it’s always important to strike while the iron is hot. Nobody knows what the future will bring, so taking advantage of low interest rates while they are low is a great idea. At Auto Approve we are committed to saving you money and getting you the best deal possible. If refinancing sounds like it might be a great 2022 resolution for you, get a quote today to get started!And those are our top financial tips for ringing in the new year.Make 2022 the year where you take control of your finances. Creating a clear plan and forming good habits is the best way to make any resolution come to fruition. And if you have an auto loan, refinancing is a great first step to saving money. Be sure to get a quote from Auto Approve today and kick your new year off with a ton of savings!GET A QUOTE IN 60 SECONDS

Emergencies are unpredictable, by nature, and none of us want to get caught off guard by a huge, unexpected expense.We have all heard how important it is to have a rainy day fund, but how much should you save, and how do you start saving?Here we will look at how much money you should save for emergencies and give you some tips on how you can build this into your budget.What is an emergency fund?An emergency fund is a separate bank account or savings account that will help offset any unexpected situations that pop up. Such emergencies might include buying a new car if your car suddenly stops working, fixing a leaking roof, or paying for unexpected medical expenses. An emergency fund might also be kept in case a person loses their job. What constitutes an emergency will vary greatly from person to person, so an emergency fund will be used differently by different people.But the goal of an emergency fund is always the same: it can help bail you out of a tight financial spot. How much should you budget for emergencies?Just as what constitutes an emergency will differ from person to person, so too will how much you should save. Emergency funds are often discussed as “how many months of expenses'' you should save. While the general rule of thumb is to save six months’ worth of expenses, this depends a good deal on your lifestyle and financial situation. Let’s look at some different scenarios:When you should save three to four months’ worth of expenses:If you are in a relatively stable position in your life and don’t have a lot of people financially dependent on you, saving three to four months’ worth of expenses will provide a good emergency fund. Consider saving this much if the following applies to you:You’re relatively young and healthy.You have a stable job, and if you lose your job you could easily find a new one.You do not have dependents (children or pets).You have a partner who is financially stable.You have little debt.If this sounds like you, aim to save for three to four months of expenses.When you should save six months’ worth of expenses:If you have a lot of expenses every month, or have dependents, you are better off saving closer to six months worth of expenses. Consider saving this much if the following applies to you:You have a lot of expenses (this could include a high mortgage, multiple loan payments, or high vehicle payment).You have dependents.Your job is not very stable, or if you lose your job you would have a difficult time finding another.You are the sole provider.You live in an area with a high cost of living.All of these factors mean that if you have an emergency expense, it might be a very costly one. Experts suggest saving closer to six months’ worth of expenses to give yourself a bigger cushion.When you should save one year’s worth of expenses:If you are older and still have a good amount of expenses, it is better to be safe than sorry and save a bit extra. Consider saving this much if the following applies to you:You are older or have underlying health conditions.You are nearing retirement.You have a highly specialized job.You are the sole provider to multiple dependents.Emergency expenses in this case might be pretty costly, so having a year’s worth of expenses will help offset any unforeseen costs and keep you from needing to worry about what could be coming around the bend.How do you determine your expenses?It is important to have a good grasp on what your living expenses are every month. You should always have a general idea of how much money comes into your household and leaves your household every month. Creating a budget is a great way to do this. If you need help starting your budget, check out our Beginner’s Guide to Budgeting. To calculate your expenses, start by figuring out the following:Your mortgage or rentYour utilities (electricity, gas, water, etc)Your car paymentsYour insurance paymentsYour loan paymentsYour groceriesYour medical bills and prescriptions Any other monthly expenses (subscriptions, vet bills, etc)When you add all of this up , you will have a pretty good idea of how much money goes out of your pocket every month. Depending on your goal, multiply this number by 3, 6, or 12 to determine your ideal emergency fund amount.How do I save for emergencies?You know how much you need to save, but how do you make that into a reality? Follow these steps to start saving for your emergency fund today.1.Set your savings goal. Calculate your expenses as described above and determine your savings goal. Having a specific goal in mind will help you stay on track.2.Create a budget. Determine all of your expenses for the month as well as all of your income, and look for some places where you can trim some fat. Are there subscriptions that you don’t use? Can you cut back on eating out or takeout? Comb through your budget for opportunities to save.Pro Tip: A great way to save money every month is to refinance your car. By refinancing to a lower rate, you can save hundreds of dollars that you can then invest in your emergency fund. And if you use Auto Approve, the process couldn’t be simpler. It's easy to get a quote today (no credit check required!) and see just how much money we can save you!3.Create an emergency fund within your budget. Start contributing to your emergency fund as if it is a bill you have to pay. Determine how much you can afford per month to set aside, whether it is $10 or $500. As long as you are routinely contributing to your fund it will eventually grow. If you come into extra money throughout the month (think tax returns, a bonus, extra tips, money from a side hustle, etc.) think about investing at least part of it in your emergency fund.4.Put it somewhere safe. It is important to keep your money in a secure place where it can ideally grow and earn interest of its own. Where should you keep your emergency fund?When we talk about emergency funds, we might think of cartoon characters keeping their money in a jar above the refrigerator marked “rainy day fund”. But in reality, we are talking about thousands upon thousands of dollars. So where is the safest and smartest place to keep this money? According to financial experts, here are the top four spots to keep your emergency funds:A high yield bank accountKeeping your emergency money in a high interest saving account is one of the easiest and safest ways to keep your money. It is easy to access when you need it in an emergency, and you may be eligible for a sign-on bonus when you open a new account.A money market accountMoney market accounts are similar to savings accounts, but banks are allowed to invest this money differently so they often offer higher interest rates. You can still easily access your money, but there are often some restrictions (for instance you cannot withdraw money more than six times per month). Additionally, these funds are not insured by the FDIC so you could lose money out of these accounts.A certificate of depositA certificate of deposit offers a guaranteed return at a fixed rate (for example they might offer 1.25% APY for 24 months). These guaranteed rates are usually higher than a savings account or money market account, but your money is tied up for the period of time to which you agree. This means that you may earn more money with this option, but you might not have access to the money when you need it most.A Roth IRAWhile a retirement fund might not immediately come to mind when you think of emergency savings, investing your emergency money in a Roth IRA might be a good move for you. If you invest your funds conservatively, you can make more money than with a traditional savings account. There is a higher risk here however of losing some of your money, so it is riskier than a traditional bank account.And that’s everything you should know about starting an emergency fund.While it is impossible to prepare yourself for everything life throws at you, you can certainly try to prepare. Preparing for the unexpected with an emergency fund is a great idea that everyone should consider.If you are trying to cut down on your monthly expenses to create an emergency fund, or just looking to save some money, consider refinancing your vehicle with Auto Approve. 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