See what’s new with
Auto Approve

There is a ton of information out there about refinancing your car. And while there is a lot to unpack, it’s actually pretty simple. Today we are talking about the most important facts of auto refinance. Here are three key facts you need to know when it comes to auto refinancing.#1: Timing is EverythingWhen you refinance your car, the timing is incredibly important. It is important in terms of how far along you are in your original loan, and in terms of timing with the market. The time left on your original loanIt’s really important to consider how much time you have left on your original loan if and when you decide to refinance your car loan. If you just bought your car and your loan is less than six months old, you should consider holding off on car refinancing. Experts recommend waiting about a year before you refinance–this gives your credit score a chance to recover from the hard inquiries of your initial loan request (which will result in the best car loan APR possible)If you have less than two years left on your original loan, it is probably not a great time to finance your car. Most lenders will not consider your application. But if you do find a lender that is willing to refinance your loan, it will most likely not be very worthwhile for you. Car loans are front-loaded amortized loans, which means that you pay most of the interest at the beginning of the loan and most of the principal towards the end of the loan. So the closer you get to the end of your loan, the less interest you are on the hook for. Market timingThe car loan APR that you are offered will depend heavily on the prevailing market rate for car loans. You want to refinance your car when market rates are low (like right now) and before they inevitably rise again (which they will).The time is right to refinance your car when:You’ve had your existing loan for at least six monthsYou have at least 2 years left on your existing loanYour credit score has increasedYou want to add or remove a co borrowerThe prevailing car loan rates are lowThe time is not right to refinance your car when:You need a high credit score for another applicationThe penalties on your existing loan outweigh the savings of refinanceYou have an old car or a car with high mileage#2: Your Credit Score MattersYour credit score is the most important factor that is within your control when it comes to refinancing your car. Your credit score is determined based on five major factors.Payment History (35%) 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%) 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 (15%) The longer you have had credit, the higher your score will be.Credit Mix (10%) You will need a good mix of retail accounts such as credit cards, loans, and mortgages for a good score.New Credit (10%) If you open a bunch of new accounts, you will be flagged for a lower score.All of these factors are used to calculate your credit score. This score indicates to lenders a person’s 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. Your credit scores are defined along the following categories:Exceptional (Super Prime): 800-850Very good (Prime): 740-799Good (Near Prime): 670-739Fair (Subprime): 580-669Very poor (Deep Subprime): 300-579Higher credit scores will make you more likely to get a better car refinancing rate and better refinancing terms. The best rates and terms are reserved for people with Prime and Super Prime scores. Which is why it’s really important to focus on increasing your credit score before you apply to refinance your car. Here are the top ways to increase your credit score:Check your credit report. Compare your payment histories, make sure there aren’t any strange accounts that you are unaware of, and make sure all of your personal data is up to date. Report any errors immediately: small inconsistencies here and there can mean big trouble for your credit score.Make on time payments. Payment history makes up 35% of your credit score. Prioritize making on time payments to increase this part of your score.Pay down any debts. Reducing your credit utilization ratio will help your credit score a lot, so prioritize paying down any debts you may have.Request higher limits. Higher limits on your accounts will help improve your credit utilization ratio and help your score greatly.Don’t open new accounts. Opening new accounts will cause hard inquiries on your credit report, which can temporarily hurt your credit score.Commit to increasing your credit score before applying to refinance your car. It can save you a lot of money!#3: Auto Refinance Companies are Your Best BetThere are a lot of places where you can refinance your car. Traditional banks, car dealerships, credit unions, online lenders–it can be truly overwhelming. That’s why your best bet when it comes to refinance is to use a company that specializes in car refinancing, like Auto Approve. Auto Approve has relationships with lenders all across the country, so they get you the best deals possible and eliminate a lot of the legwork for you. When all you do is car refinance, it means that you know all of the ins and outs of the industry and can find the best rates and deals for your customers.With 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’re pretty sure our customers are glad they trusted Auto Approve.And those are three key facts you should know about auto refinancing.Using a company that specializes in auto refinance can eliminate a lot of the noise for you. They can answer your questions (and even help you with the paperwork!). So get in touch with Auto Approve today to get the ball rolling and start saving money today!GET A QUOTE IN 60 SECONDS

Cost of living just keeps rising these days, and at a faster rate than ever before. And it’s not just in the United States–the cost of living is going up across the globe. But why now, and what can you do to save your hard earned money.Here are our top tips to reduce your cost of living expenses and save more money.What are cost of living expenses?Cost of living expenses depend in part on the individual. But according to the Economic Policy Institute, the most common cost of living expenses are housing, food, transportation, childcare, and healthcare. Inflation has caused these expenses to skyrocket lately.Why is the cost of living so high?The cost of living is so high these days due to inflation in the United States, which is higher than it’s been in forty years (that’s right, FORTY years!)  and due to global inflation, which is at its highest since 2008. There are a lot of factors that contribute to inflation, and all take their toll on our wallets. Here are some of the top reasons for increased inflation and cost of living.Shortage on GoodsShutdowns during the pandemic caused manufacturing across the globe to halt. This caused a shortage not only in products, but in the raw materials used to make those products, including plastic, steel, timber, and concrete. While manufacturers have been reopened for some time now, they are still scrambling to catch up with demand. This drives up inflation and therefore our cost of living.Increased Fuel PricesGas is more expensive than ever, which affects our cost of living in a major way. As of late May, the national average was $4.57 a gallon. For the first time ever, drivers in all 50 states paid over $4.00 per gallon. This is because the price of crude oil has surged to over $110 per barrel, a cost that is passed on to consumers.And this price surge is for a few reasons:The US ban on Russian oil. While the US doesn’t get a lot of oil from Russia, the global fuel market is very sensitive. Any decision that affects purchasing fuel has many ripple effects. Ripples from the pandemic. Demand for oil plummeted during the shutdowns, causing oil producers to slow down production. This supply and demand imbalance has caused prices to surge.Summer blend gas. During the warmer months, gas companies switch to a “summer blend” which is formulated to evaporate less. But this reformulation comes with a higher price tag of an additional $.07 to $.10 per gallon.Increased Shipping CostsIncreased fuel prices coupled with a shortage of drivers and loaders has caused an increase in shipping costs as well. And this cost gets–you guessed it–passed on to the consumers. Almost everything that you buy is transported in some way, so this added cost affects your wallet in a big way.Rising WagesA shortage of workers has caused many companies to increase their wages. And these added wages and sign on bonuses have caused many companies to raise their costs.How can you save money with the rising cost of living?Saving money is more important now than ever. But there’s always steps you can take to get more in control of your finances. Here are our top tips for saving money and getting ahead of the rising cost of living.Make a budget. We probably sound like a broken record, but making a budget is one of the best ways to get a handle on your finances. Compare your monthly income to your monthly expenses to determine how you are faring in this economic climate. Making a list of your expenses can help you see the areas where you can cut costs and the areas where you can’t.Cancel unused subscriptions. Do you use your Netflix, Hulu, HBO, Disney+, etc? Are there any that you can part with? Try cutting back on some of these expenses first. Buy generic brands. When you go grocery shopping, skip on the name brands and opt for the generic brands. They are most likely incredibly similar and can save you a lot of money on your grocery bill.Seek out coupons. Look in the store circulars and online for coupons of your favorite items. A dollar or two here and there can save you a lot in the long run.Shop on Wednesdays. Most grocery stores release their circulars on Wednesdays, so you can get first dibs on the best deals.Combine trips to save on gas. With how expensive fuel is, you want to be as efficient as possible with your car. So try to combine your errands when you can to cut down on unnecessary mileage (and tank fill ups).Carpool. If you have some local work friends, try carpooling to work. You can both save on gas prices (and also get to utilize that sweet carpool lane!)Refinance your car. Refinancing can save you money in a few ways. First of all, if you may qualify for a lower car loan APR if either your credit score has increased or if prevailing car loan APRs have decreased. Lowering your APR can add up to hundreds if not thousands of dollars in savings. But even if your APR doesn’t change drastically, refinancing can still help you save money if you change your repayment period. Lengthening your repayment period will give you more time to pay off your loan, thus spreading the payments out so they are smaller.You will pay more in interest over time, but it can give you more breathing room every month. You can also shorten your repayment period. This will make your payments larger every month but will allow you to pay off your loan sooner and save you a ton in interest payments.Switch to remote work, if possible. More and more companies are allowing you to work from home. And with the price of gas, this can be a huge perk (not to mention the time you can save every day!)Ask for a raise. Employers are aware of the increased cost of living (after all, they are dealing with it as well). So be honest with your employer and ask for a cost of living raise. They may surprise you with their response and give you the extra income you need.Look for a side hustle. There are tons of ways to earn a little extra money these days. Look into driving for a rideshare or grocery shopping for other people. A few extra hours of work a week can give you a little more breathing room in your monthly budget.Negotiate your bills. Call your providers (such as your cell provider, TV, and internet) and see if they can reduce your bills. You may be surprised by their willingness to help. You can also try to negotiate fees on your credit card and overdraft fees from your bank.Eat out less. Eating out at restaurants is more expensive than ever with the rising cost of food. If you are accustomed to eating out or ordering takeout a few times a week, try cutting back a little to stretch your budget a little further.Pay back your debt. When things are tight, paying down debt may be the last thing on our minds. But prioritizing paying past debts will help you to eliminate their obligations and free up your money faster. At the very least, be sure to be making your minimum payments.Keep your emergency fund loaded. Again, saving your money during tight times might not be a high priority. But this is when it’s most important to have a solid rainy day fund. If something goes wrong when your budget is stretched, you are less capable than ever of dealing with it. So keeping some extra money socked away is super important. (Experts recommend having three to six months worth of expenses in your emergency fund.)Invest in bonds. If you are looking for a safe place to invest your money, look into buying “I bonds”. I bonds rise and fall with theConsumer Price Index, so they are protected against inflation. They are virtually risk free and are much safer than most other investment options out there today.Those are our top tips to reduce cost of living expenses and save your money during today’s high inflation.If times are tight, be sure to make a practical budget to help you stay on track. Look for simple ways to cut your expenses, such as switching up your grocery shopping habit and refinancing your car.A car refinance is a great way to save you money every month. And with how low car loan APRs are right now, it’s the perfect time to make the switch. Get in touch with our experts at Auto Approve today–they love to save people money and can help guide you through the process of refinancing. Get started today with a free quote!GET A QUOTE IN 60 SECONDS

If your monthly car payment has you struggling to make ends meet every month, you might be wondering how you can get a lower car payment. Maybe your income unexpectedly decreased; maybe your other expenses have unexpectedly increased; or maybe you just flat out got in over your head. Whatever the reason is, rest assured that there are ways to help you get out of a high car payment! Let’s talk about high car payments and how you can get out from under them.What is a car loan?Let’s start with the basics. A car loan is a secured loan that can help you finance a new or used car. A lender will pay for your car and you will repay them in monthly installments with an additional fee, the interest, which is what incentivizes them to loan you the money in the first place. Your car acts as collateral and if you cannot repay the lender, your car will be taken away as repayment. The fact that your car acts as collateral is what makes this a “secured” loan.How are car payments calculated?Your monthly car payments depend on three main factors: the principal of the loan, the interest rate on the loan, and the length of the loan term. Car payments are calculated by adding up the principal of the loan (this includes the price of the car plus any taxes and fees, minus the down payment) plus the total interest due over the length of the loan. It is then divided up by the amount of months in the term.Why are your car payments so high?Car payments were higher at the end of 2021 than they have been in a long time. In fact, according to Experian’s State of the Automotive Industry, the average monthly car payment jumped from $567 at the end of 2019 to $644 at the end of 2021. That’s a 14% increase in just two years! The main reason that car payments are so high right now is simple: cars are just more expensive today than they were a few years ago. Much of this increase in price is a result of the infamous computer chip shortage: a shortage in computer chips meant that cars were (and still are) taking longer to build. This increased demand and in turn increased prices. But putting the cost of cars aside, there are a few other reasons that your car payments might be so high:Your interest rate is high. Your car loan APR could be high for a number of reasons. Maybe the prevailing market rates were high when you initially financed your car (but they are currently very low!. Maybe your credit score wasn’t so hot when you initially financed, or your income was notably less. All of this can lead to higher car loan APRs (and therefore high monthly car payments).Your loan term is short. The shorter your loan term, the less time you have to pay back your loan. And although you will save a lot in interest by having a short term loan, you will have less time to pay off the principal. This means that your payments are compressed and therefore much higher per month.But whatever the reason is, fear not! We have some helpful tips on how you can get off the hook for your high car payments and help you secure lower car payments.  After all, we could all use some extra money in our pockets, right?What can you do to get out of a high car payment?Talk to your lender (Before you miss any payments)The first step you can take is to simply talk to your lender. Communication is so important, and if you are upfront and honest with your lender, they might be willing to work with you. The lender may allow forbearance, where they will temporarily reduce your payments (or even put a temporary pause on repayment). Be sympathetic in your plea: they may surprise you with their leniency. Sell your carIf your money issues aren’t a temporary issue, a pause on repayment will probably not help you a whole lot. Your car might simply be too expensive for you. And if that’s the case, selling your car might be a good option for you. The following may help you get the best price for your car:Understand and research your car’s valueCollect your car’s paperwork and service recordsPerform any maintenance that may be neededThoroughly clean your car, outside and insideAdvertise widely, both online and in your communitySet up a safe place for people to see your car and test driveSelling your car can be a great way to get those pesky monthly payments off of your back. But remember: you most likely still need a car to get around. Be sure you can find something that is within your budget before you sell your only way to get around.Refinance your carAnother great option to to get a lower car payment is to refinance your car loan. Refinancing is when you pay off an existing loan with a new loan, one that ideally has better terms. So if your car loan APR is too high or your repayment period is too short, refinancing is the best option for you to get better terms. Here’s how to know when the time is right to refinance:The market rates have decreased. If the prevailing loan rates have decreased since you initially got your loan (which they most likely have), you may be able to qualify for a lower car loan APR. (Pro tip: refinance soon before the rates go up again! Refinancing is all about striking while the iron is hot)Your credit score has increased. If your credit score has improved since you initially financed your car, you may be able to qualify for a lower car loan APR. Your credit score is the single most important factor that you can control when it comes to the interest rates you are offered. If your credit score hasn’t improved but refinancing still sounds like a good option to you, spend a few months focusing on improving your score before you apply: it can save you a boatload of money in the future.Getting a lower car loan APR can save you a lot of money over the length of your car loan. But be wary of refinancing if any of the following apply to you.You have less than two years left on your loan. Since car loans are front loaded amortized loans, you pay off most of the interest in the beginning of your loan and most of the principal towards the end of your loan. Therefore as you have less and less time left on your loan, you are paying less and less interest. Because of this, refinancing is less and less beneficial as more time goes on.You’ve had your existing loan for less than six months. Experts recommend waiting at least six months (if not one year) to refinance. That’s because it generally takes that amount of time for your credit score to bounce back after the hard inquiries on your credit report.Your existing loan has prepayment penalties. Many loan contracts have prepayment penalties built into them. These penalties are meant to discourage people from leaving their contracts early. Afterall, they make less money on interest if you jump ship. So before you get too far into refinancing, be sure to check your current loan’s contract to make sure that any penalties will be outweighed by the amount of savings that refinancing will provide.So, should you refinance your car?Refinancing is a great way to ensure lower monthly car payments. To be sure that you get the best car loan APR possible, use a company that specializes in auto refinancing, like Auto Approve. We have relationships with lenders all across the country, which means we can secure you the most competitive rates out there. But don’t just take our word for it–with a 96% would recommend rating on LendingTree and an A+ rating on Better Business Bureau, you know our customers are satisfied!Those are our top tips for getting out of high monthly car payments.Saving money is more important than ever nowadays. And refinancing your car is an easy and effective way to cut costs and get lower car payments every month so that you have more money to spend on things that matter. So don’t wait to cut costs – get started today with Auto Approve!GET A QUOTE IN 60 SECONDS

When the market rates are as low as they have been this year, everyone starts talking about refinancing. And for good reason – after all, refinancing your car loan can save you a lot of money. But how do you know the time is right, and when is it worth it to refinance your car? Is there a magic APR that will make refinance a good idea? Right now, rates are beginning to go up, but you may still be able to save if you refinance your vehicle now.Here’s how you can decide if refinancing your car loan is worth it.What happens when you refinance a car loan?Refinancing a car loan is when you pay off your existing car loan with a new loan, ideally one that has better terms. If you qualify for a lower car loan interest rate, this could save you a lot of money over the length of your car loan. When you refinance, you can not only change the car loan APR you are paying, but you can also change your repayment period and add or remove a co-borrower.What is a good car loan APR?The easy answer to this question is that a good refinance APR is an APR that is lower than what you are currently paying. But we can look a little deeper at these numbers. Here are the average car loan rates offered based on credit scores from the last three months of 2021:Exceptional Credit (800-850): 2.47%Very Good Credit (740-799): 3.51%Good Credit (670-739): 6.07%Fair Credit (580-669): 9.41%Very Poor Credit (300-579): 12.53%Now let’s look at the average car loan rates offered based on credit scores from the last three months of 2019:Exceptional Credit, (800-850): 3.82%Very Good Credit (740-799): 4.75%Good Credit (670-739): 7.55%Fair Credit (580-669): 11.51%Very Poor Credit (300-579): 14.25%Comparing these numbers to years before, we can see that car loan APRs have dropped significantly in just two years. A drop of 2% can save you a lot of money in the long run. But don’t take our word on it; let’s do some math.Say you have a car that you purchased for $35,000 at 5% APR over a 6 year term. You would be responsible for $5,584 total in interest, and your monthly payments would be around $564 per month. After two years, you would still have a balance of about $21,464, after paying $2,795 in interest alone. But let’s say you choose to refinance. You are able to secure a loan for the remaining principal (using an amortization table shows us that the remaining balance of the principal would be $25,394) for 3% over the remaining 4 years. The total amount of interest due over the remaining four years would be $1,586. Total interest due from original loan: $5584Total interest paid to original loan: $2795Interest that would be due without refinancing: $2789New Interest amount due with refinancing: $1586Savings from refinancing: $1203So, is it worth refinancing a car for 3%?Resoundingly, well, YES! Refinancing for just a few points lower in our above example saved our hypothetical customer $1200. Keep in mind, the better your credit score is, the better car loan APR you will be offered. So if your score has increased since your initial financing, there’s a good chance you can qualify for even lower car loan APRs.When is the best time to refinance a car loan?There are times when refinancing makes sense, and times when it doesn’t. Here’s how you know if the time is right to refinance your car loan.Your credit score has improvedIf your credit score has improved, now is the time to refinance. You have a much better chance of securing a lower car loan APR if your score has increased. With the brackets above, it’s clear that car rates become lower and lower as you go up in credit brackets. At the end of 2021, raising your credit score from “good” to “very good” reduced the average car loan APR by over 2.5%. So how do you know if your credit score has improved? Your credit score depends on the following categories:Payment History (35%)Accounts Owed (30%)Length of Credit History (15%)Credit Mix (10%) New Credit (10%)The most important factors in your credit score are your payment history and your accounts owed. If you have been more consistent with on time, full payments, your credit score may have increased a good deal. If you have paid down some of your debts and lowered your credit utilization ratio, this also may have increased your credit score significantly. You can read more tips on improving your credit score here.You should check your credit score often, and not only when you are looking to make a financial move. Get in the habit of checking your score every few weeks. You should also get into a routine of checking your credit report. You can get a free copy once per year from each of the three major credit agencies: Experian, Transunion, and Equifax. Be sure to review it thoroughly to make sure there are no errors or mistakes. Catching errors on your report can bump up your credit score significantly as well.The market rates are lower than when you originally financedAs we’ve seen, the market car loan interest rates in 2022 dipped lower than ever, so chances are they are lower now than when you originally financed. If you financed your car in 2019 and had good credit, the average APR offered was 7.55%. Car loan APRs for good credit scores were around 6% at the time of writing this blog. You need more breathing room every monthIn addition to saving you money in interest, refinancing your car loan is a great way to free up some extra money every month, even if you don’t necessarily qualify for a lower car loan APR. When you refinance, you can change the terms of your repayment, including the repayment period. By stretching out your repayment over a longer period of time, your payments every month will be much, much lower. You may end up paying a bit more over the length of the loan, but this may be worth it to you depending on your financial situation. On the other hand, if you choose to shorten your repayment period, you can pay off your loan much faster and save money overall. Your monthly payments will be higher, but you will pay less interest over the life of the loan. And these savings can add up big.You want to add or remove a co-borrowerIf you want to add or remove a co-borrower from your loan, refinancing your car loan is your best option. Since interest rates and loan terms are decided on a case by case basis and depend highly on the applicant’s financial situation, lenders will not simply add or remove someone from an account. In their eyes, they can no longer be assured that the loan will be paid back. So if you want to add or remove someone from your car loan, refinancing is your best option.Refinance sounds great! But what is the best way to refinance a car loan?The best way to refinance your car loan is to use a company that specializes in car loan refinance, like Auto Approve. Since car refinancing is our main focus, you can rest assured that we know everything there is to know about the refinance process.Car refinance sounds like a complicated, mysterious process with a lot of options to weigh. But with Auto Approve, it is actually much easier than you may think. In fact, refinancing a car is much simpler than refinancing a mortgage, and can typically be done in a few hours. All you need to do is fill out some basic information and we will shop around and get the best quotes for you to compare. We can then help you to weigh all of your offers and decide which car loan is right for you. And after you decide, we can help you with all of the paperwork (even the DMV papers!)With a 4.7 out of 5 rating on Trustpilot, our clients can testify to the ease and effectiveness of refinancing. Some of our customers report slashing their interest rates by as much as 6 percentage points! That literally translates to thousands of dollars in savings. So if you are wondering “is refinancing a car worth it?”, reach out to Auto Approve to get your free quote today!With the low interest rates available today, now might be the perfect time to refinance your car loan.Today’s interest rates are incredibly low and it’s important to take advantage of them while you can. When it comes to refinance, timing is key. So if you are thinking about refinancing your car loan, don’t wait any longer – get in touch with Auto Approve today and start saving your hard earned money! (Seriously, what are you waiting for?)GET A QUOTE IN 60 SECONDS

Picking an auto refinance company can feel overwhelming. With so much information out there, it’s hard to even know where to start sometimes. That’s why today we are discussing what factors you should consider when choosing an auto refinance company, and how you can make sure you get the best car refinance deal possible.Here’s everything you need to consider when choosing an auto refinance company.Where Can I Refinance My Car Loan?First things first; who can refinance my car loan? You have four basic options when it comes to a lender that will refinance your car loan: a traditional bank, a credit union, a dealership, and an online lender. Let’s look at the pros and cons of each of these.Traditional BanksThe Pros: Refinancing your car loan through a traditional bank can be relatively easy (so long as the bank of your choice actually does refinancing – some traditional banks do not offer personal loans like this anymore). Since traditional banks are so large, they can often offer the lowest and most competitive rates for your car loan refinance. The Cons: Traditional banks tend to have very strict requirements and may not be as willing to work with you as other lenders. Their applications tend to be lengthier and their credit score requirements are more aggressive. Credit UnionsThe Pros: Since credit unions are smaller, they can often work with you more to bend the application rules and requirements. They are designed to help a core group of customers, so they have more leeway than larger banks have to make exceptions. The Cons: While they will be able to work with your unique situation better than a traditional bank, you will most likely not get the best rate out there. It will be easier to secure an auto loan, but it might not be the ideal terms you were seeking.DealershipsThe Pros: Refinancing at a car dealership is incredibly easy, especially if you have your initial financing there.The Cons: Refinancing through a dealership will almost never secure you a low car loan APR. This is because car dealerships act as intermediaries and tack on additional fees to the deals that are offered by the lenders.Online Refinance CompaniesOnline auto refinance companies are probably your best bet when it comes to getting the best deal while keeping the process simple and to the point.At Auto Approve, auto refinance is our specialty. And because it’s our specialty, we make the process super easy and the point. All you have to do is fill out some basic information, and we take care of the rest. We have relationships with top lenders across the country – including a mix of banks and credit unions – so we can get you the best rates around. It takes a lot of time and research to comb through the hundreds and thousands of lenders that can refinance your car loan. So a one stop shop like Auto Approve can make your life much, much simpler by handling all of that legwork for you. And bonus: we even handle the nitty gritty paperwork for you (yes, even the DMV paperwork).What Factors Should I Compare When Choosing an Auto Refinance Company?When researching auto refinance companies, there are a few things you want to compare. When you have offers to compare, be sure to look at the following.The APRThe point of refinancing your car loan is to save you money, and securing a lower car loan APR is the key to that. The car loan APR you are offered will be based on: The market ratesYour incomeYour vehicleYour credit scoreYour credit score is the most important factor when it comes to the car loan APR you will be offered, so make sure your credit report is accurate and up to date and that you are making consistent on time payments to your accounts.The market rates have a significant effect on the car loan APR you will be offered as well. If the market rates are lower now than when you initially financed, you will likely qualify for a lower APR.The Terms of the Loan: Short Term vs. Long TermYou will most likely have an option for the repayment period of your loan. A short term loan is great when it comes to maximizing your savings. By having a shorter repayment period, you will pay interest over less time and therefore save more money. You will most likely be offered a lower car loan APR for a short term lease. If you choose a longer repayment period your car loan payments will be much less every month, as your payments will be spread out over a longer period of time. But you will not save as much money in the long run, as you will be paying interest over a longer period of time and you will most likely be offered a slightly higher car loan APR when compared to the short term loan.The FeesDifferent lenders have different fees that they charge to refinance your car loan. This will vary from lender to lender but may include the following:The prepayment fee. Some lenders charge fees for paying off your loan early. The processing fee. Both your current lender and new lender may charge you a processing fee.The registration fee. You may be required to re-register your car when you refinance your car loan. This will vary from state to state.The title transfer fee. Some states may charge a title transfer fee, even though the title is just moving from one lender to another. Be sure to ask your lender about these fees and be sure you understand what hidden fees may be in your agreement.The Customer RatingsCustomer satisfaction is very important when it comes to choosing a car refinance company. Are they transparent with how your payments are allocated? How is their communication? Do customers seem happy with their deals? Reading customer reviews can provide you a great deal of insight. Be sure to read it all, the good and the bad, to determine if this lender is a good match for you.At Auto Approve, we know how important customer satisfaction is. That’s why we go above and beyond to make sure each customer has a positive experience. But don’t just take our word for it. With over 2200 five star reviews on TrustPilot, you can rest assured that our clients are happy.When Should I Refinance My Car Loan?Interest rates have dropped since you initially financedIf interest rates have dropped since you initially applied for financing, you may be eligible for a much lower car loan APR. In the past two years car loan rates have dropped drastically, so chances are you can be saving a lot of money every month by refinancing your auto loan.Your credit score has improvedIf your credit score has improved since your initial financing, you may be eligible for a lower car loan APR. Sometimes the difference of ten or twenty points can be the difference between a good car loan APR and a great car loan APR. And that can translate to saving hundreds of dollars. Check your credit score and credit report to see how you compare.Your debt-to-income ratio has improvedYour debt-to-income ratio can also affect the car loan APR that you are offered. Whether your income has increased or your debts have decreased, this can help you to secure a better car loan APR.You got into a bad deal in the first placeIf you got talked into a bad financing deal in the first place, it’s probably time to refinance your car loan. Dealership financing is notoriously predatory, so if a smooth talking salesman talked you into a high APR or unfavorable repayment terms, refinancing your car loan is probably a good bet.You need extra money every monthIf things are a little tight every month, refinancing your car loan can give you a bit of breathing room. You can reduce the APR you are paying, which can save you money every month. You can also change your repayment terms when you refinance your car. By stretching out your repayment period over a longer period of time, you can reduce your monthly payments by hundreds. You may end up paying more in the long run, but it might be a good option for you if your budget is tight.And that’s everything you need to think about when choosing an auto refinance company.There’s a lot to think about when it comes to refinancing, and deciding which company is the best for your car loan refinancing can feel overwhelming. That’s why choosing a company that specializes in car loan refinancing can make the process much easier. All you need to do is fill out some information, and we can handle the rest. So don’t wait any longer – get started with Auto Approve today and discover how much money you could be saving!GET A QUOTE IN 60 SECONDS

Times are hard right now for many people, and the ballooning inflation we are seeing doesn’t seem to be letting up. It leaves many people to wonder, “how can I save some money” – and specifically, “how can I lower my car payment?”If you are like most people, you are probably overpaying on your car payment every month. In fact, by the end of 2021 the average car payment was over $640 per month. That’s over $7500 per year, not including insurance, gas, maintenance, etc. Long story short: owning a car is very expensive, especially in 2022.But fear not – today we are talking about how car payments work and how you can get lower monthly car payments.Here are our top tips to help get a lower car payment.How are car payments calculated?In order to determine a car payment, you will need to know the following information:The cost of the car, also called the principalThe term of the loan The interest rateSales taxAdditional feesYou can go online and find a car payment calculator that will help do the heavy lifting for you. For example, say you are buying a $30,000 car with a $5,000 down payment. You have a 5 year loan at 4.5% APR with 7% sales tax and $300 in fees. Total Loan Amount: $27,400 ($25,000 cost of car + $2,100 tax + $300 fees)Total Cost of Interest Over 5 years: $3,2429.12Total Cost of Car: $35,649.12Monthly Payments: $510.82The monthly payments are divided between the principal balance and the interest on the loan. Car loans are front-loaded amortized loans, which means that towards the beginning of the loan, more of the payment goes towards the interest on the loan. Towards the end of the loan, more of the payment goes towards the principal. A car payment amortization schedule can help you keep track of how your payments are divided. A car payment amortization breakdown for our above example shows how car payments are divided between principal and interest:Year 1Beginning Balance: $27,400.00Interest: $1,130.73Principal: $4,999.11Ending Balance: $22,400.91Year 2Beginning Balance: $22,400.91Interest: $901.07Principal: $5,228.77Ending Balance: $17,172.15Year 3Beginning Balance: $17,172.15Interest: $660.86Principal: $5,468.98Ending Balance: $11,703.19Year 4Beginning Balance: $11,703.19Interest: $409.62Principal: $5,720.22Ending Balance: $5,982.99Year 5Beginning Balance: $5,982.99Interest: $146.83Principal: $5,983.01Ending Balance: $0.00Early on in your loan, you are paying more in interest, and later on you are paying more in principal. But the monthly car payments will stay the same every month.What is a good APR for a car loan?Your monthly car payments are primarily dictated by your starting principal, car loan APR, and term of repayment. While the starting principal and repayment term are up to you, you will need to shop around for the best car loan APRs. The car loan APR you are offered will be based on the following:Prevailing market ratesYour credit scoreYour debt-to-income ratio Your loan termIs it a new car or used car (used car loan rates tend to be higher than new car rates)The rate you are offered depends a great deal on your credit score. The higher your credit score is, the lower the car loan APR. 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): 300-579In the last quarter of 2021, the average car loan APRs of each category were as follows:Exceptional (Super Prime): 2.47%Very good (Prime): 3.51%Good (Near Prime): 6.07%Fair (Subprime): 9.41%Very poor (Deep Subprime): 12.53%The interest rates for those with very poor credit were about five times the interest rate for those with exceptional credit. And that can add up to a lot of money over the length of your loan.How to get a lower monthly car payment before you buyTo avoid having high monthly payments from the beginning, you want to do your research ahead of time. Follow our tips below to stop high monthly car payments before they even start. Make a down paymentMaking a down payment will reduce the total amount of your loan, your principal. The larger the down payment, the lower your monthly payments will be. Aim to pay at least 20% of the total cost as a down payment. This will also reduce the chance of your loan becoming underwater (when you owe more on your car than your car is worth).Shop and compareShop around for the best deals on the car you want. The lower the sticker price is on your new car, the lower your monthly payments will be. Be sure to look at Kelley Blue Book and Edmunds before you even step into a dealership so that you know how much money the car you are interested in is actually worth. It’s easy to get talked into a bad deal by a smooth-talking salesman, so do your homework beforehand.Choose a longer repayment termSelecting a longer repayment term from the beginning will result in lower monthly car payments. But remember: the longer your repayment term, the longer you will be paying interest. This can add up to a lot of money by the end of your loan.Make sure your credit is in good shapeTo ensure you get the best car loan APR offers in the first place, make sure your credit score is in good shape from the beginning. Request a copy of your credit report and review thoroughly for errors or mistakes.Commit to making consistent, on-time and full payments to increase your score.Pay down any large debts that may be skewing your credit utilization ratio.Avoid opening any new accounts or triggering any hard inquiries in the year leading up to your financing. Working on your credit score can save you a lot of money in the long run and is something you should take very seriously. Bumping your score up can result in hundreds if not thousands of dollars in savings.How to get a lower monthly car payment after you buyIf you are overpaying on your monthly car payments, here are our top tips to lower your payment.Refinance your car loan to a lower APRRefinancing a car loan is when you pay off your existing loan with a new loan. If you can secure a lower APR, this can save you a lot of money. You may find a lower car loan APR if:The market rates have decreasedYour credit score has improvedYour debt to income ratio has improvedAverage market rates have dropped significantly in the past two years, so chances are you will find a lower car loan APR, even if your credit score hasn’t improved much.Refinance your car loan to a longer termIf you are currently on a shorter term loan (say 36 months), refinancing your car loan to a longer term can drastically lower your monthly car payments. Talk to your lenderIf you are struggling to keep up with monthly payments, try talking to your current lender about your situation. If your credit score has decreased or your current loan’s prepayment penalties make refinancing your car impossible, talking to your lender may be your best option. They may be able to put you on a more manageable payment plan or suggest other options to you. The Consumer Financial Protection Bureau suggests asking your lender how any of these options might affect your credit.Add a co-borrowerIf your credit score isn't better than what it was when you originally financed your loan, adding a co-borrower may be a good option for you. When you refinance a car loan, you can add a co-borrower to your loan and possibly reduce your interest rate and secure better terms. If they have good credit, they will be eligible for a better interest rate. Those are our top tips for getting a lower monthly car payment.Be sure to understand how car payments are calculated before you commit to any type of financing. It’s also important to do your homework to make sure that you are getting a good and manageable financing deal in the first place. But if you already have a less than ideal car loan situation, refinancing your car loan may be your best option.At Auto Approve, we specialize in car loan refinancing and know how much money it can save you every month. We have relationships with lenders across the country and can help you start saving money today. So don’t wait – find out just how much money you could be saving with lower monthly car payments. contact us today to get your free quote!GET A QUOTE IN 60 SECONDS

Refinancing your car loan is a great way to save money. Whether money's a little tight or you want to open up more monthly cash flow for more important things, either refinancing to a lower car loan APR or by changing your repayment term can drastically change your monthly payments. And refinancing to a lower rate can even help you save more money overall and pay less monthly. But are there any upfront fees associated with an auto loan refinance? That's what we'll be taking a closer look at in this article. How much money does it cost to get an auto loan refinance, and is it worth it?When you refinance a car loan, what happens?Auto refinance is when you pay off your existing car loan with a new car loan, ideally one that has better terms and a better car loan APR. And while it may sound complicated or time consuming, it’s actually super simple. It’s much easier and faster than refinancing a mortgage, and if you use a dedicated auto refinance company, they can handle a lot of the paperwork for you.To refinance a car loan, there are just a few simple steps you need to take.Gather your documentsMake sure you have all of the paperwork you will need for your car loan refinance. You will typically need the following:Your personal information. This will include your photo identification, social security number, and proof of residence (note that it must be a physical address, not a PO Box).Your car’s information. You will need to know the make, model, year, VIN (vehicle identification number), and mileage of your car.Proof of income. You will need proof of employment. Recent pay stubs are perfect for this.Proof of insurance. You will need to prove that your car is insured.Current loan information. You will need all of your current loan information, including the balance and the lender’s contact information.After you have all of your documents together, you may want to scan and upload them on your computer if you are planning to apply online. The more prepared you are, the faster the refinancing process will be.Make sure your credit is in good shapeBefore you apply for auto loan refinance, you want to be sure that your credit score is in good shape. After all, the higher your credit score is, the lower your car loan APR will be. Request a copy of your credit report to check for any mistakes or errors and report anything that is incorrect. If your credit score isn’t great, consider waiting a few months and focus on increasing your score in that time.Research lendersBefore you apply, you won't have any solid offers to compare. But you can do research on different lenders and see what their customers have to say about them. Are their customers happy with their loans? Is there good communication and customer service? Narrow down on three to five lenders, ideally a mix of traditional banks, online lenders, and credit unions.Apply and compareAfter you’ve done your research, it’s time to apply. If you use a company that specializes in auto loan refinance, they can help you through the application process and help you decide which offer is right for you. Look at the following terms in each offer:The interest rateThe prepayment penaltiesYour cash flow and the repayment termsCustomer satisfactionHidden feesSign and saveOnce you’ve decided on the auto loan refinance that is right for you, you can sign on the dotted line and start saving immediately. Most lenders and refinancing companies will take care of most of the paperwork for you. This involves paying off the balance of the old loan and beginning payments on the new loan. But be sure to reach out to the previous lender to ensure the loan was paid off in full. At Auto Approve, we specialize in refinancing and know how much of a drag all of that paperwork can be. And that’s why we collect all of the documents you need and send them to you electronically. All you need to do is e-sign and let us handle the rest. We even handle the DMV paperwork for you!How much money does it cost up front to refinance your car loan?There are a few upfront costs associated with refinancing your car loan. They will vary from lender to lender and depend on not only your current loan’s terms, but also your new loan’s terms. Here are a few fees that you may be responsible for:Prepayment fee. Your current lender may charge you a fee for paying off your loan  early. Read through your current loan’s paperwork to see how much this fee will cost you. Transaction Fee. Your current lender and new lender both may charge you a processing or transaction fee. You may be able to get this waived however (it doesn’t hurt to ask).Late Payment Fee. If the new loan takes some time to process, you may have a late payment on your existing loan, and there may be a fee associated with this. Registration Fee. You may be required to re-register your car when you refinance your car loan. This varies from state to state so be sure to visit your DMV to find out.Title Transfer Fee. States may also charge a title transfer fee, even though the title is just moving from one lender to another. As everyone’s loans are different, it’s hard to say exactly how much the upfront costs of car refinancing are. It may be next to nothing, or it might be a few hundred dollars. But refinancing a car loan can save you a lot of money in the long run, so don’t let any short term costs dissuade you from auto loan refinance.Is refinancing a car worth it?Most people are overpaying on their car loan payments. And because of this, you can stand to save a lot of money with an auto loan refinance. Car loan refinancing may be right for you if any of the following apply to you. Your credit score has improvedCar loan refinance rates depend heavily on the applicant’s credit score. So if your credit score has increased since you initially took out your loan, you may qualify for a lower interest rate.  Credit scores indicate how likely a person is to repay their loan. A good credit score tells them that you are a good candidate who pays their bills and pays them on time. Your credit score depends on the following categories:Payment History (35%)Accounts Owed (30%)Length of Credit History (15%)Credit Mix (10%) New Credit (10%)If you have been more consistent with on time, full payments, your credit score may have increased since your initial financing. If you have paid down some of your debts and lowered your credit utilization ratio, this also may have increased your credit score significantly. The interest rates are lowIf market interest rates are low (like they are right now), you might be able to qualify for a lower car loan APR, even if your credit score hasn’t changed. Today’s market rates are down significantly from a few years ago, so if you initially financed a few years ago, you may find much better rates now.You need help with monthly paymentsIf your monthly budget is a bit tight lately, refinancing your car loan can help you free up some money every month. 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. But even if you don’t qualify for a lower car loan APR, refinancing your car loan gives you the chance to change your repayment terms. And by lengthening your repayment period, you can change the amount you pay per month drastically.  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-borrowerThere is no way to add or remove a co-borrower to an existing loan, so if you want to change who is listed on the loan, you will need to refinance your car loan. This is because every loan decision is made by looking specifically at each borrower’s financial situation, and changing who is listed as a co-borrower may affect their decision to loan the money. There are a few fees that you may have to pay when you refinance your car loan, but it is usually greatly outweighed by the amount of money you can save.While there are a few fees, they will depend on the terms of your current loan and the terms of your new loan. There might be application fees, registration fees, and penalty fees. But in general they are not much compared to the amount of money car refinancing can save you.Refinancing a car loan doesn’t have to be complicated. Get started with Auto Approve today to discover just how much money you could be saving.GET A QUOTE IN 60 SECONDS

If you are looking to buy a new car, you may be wondering if now is a good time. Fortunately, car loan rates tend to be a little less sensitive than other types of loans. So even though the Fed has announced that it will be steadily raising rates throughout the year, they shouldn’t affect the car loan market too much.Now is a perfect time to refinance your existing car loan.Auto Rates in 2021The car market went through a strange year in 2021. While rates remained low as a result of the pandemic, there were supply chain issues that resulted in low inventory. Low inventory in turn led to increased prices. But while car prices increased, the interest rates decreased.From the start of the year to the end of the year, car loan interest rates dropped from 4.24% to 3.92%. This actually fueled consumer demand further, leading to even more shortages. Long story short, it was a great time to buy a car, but not an easy time to buy a car.Forecasting Auto Rates in 2022The Fed announced early this year that it plans to gradually increase interest rates to help curb the ever-rising inflation that we are seeing. But as we noted before, car loan interest rates tend to be a bit more stable than other interest rates. This is because car loans are highly competitive, so they do not respond as drastically to market increases. So even though benchmark rates will rise steadily throughout the year, car interest rates will most likely not rise above 5%.The problem continues to be with the supply chain. A global chip shortage has drastically slowed down production of new cars. New car availability is down about 65% over the last year, which makes buying a new car more difficult and more expensive. In fact, a Torque News survey reported that dealerships were charging between $10,000 and $20,000 over the sticker price for a new car.So while timing is great from a financing point of view, timing is not necessarily great from a car price tag point of view. It might not be the perfect time to buy a new car, but it is the perfect time to refinance your car loan.Why now is the perfect time to refinance your car loanWhen rates are low but inventory is short, it means that it’s a great time to consider keeping your current car and refinancing your car loan to a lower rate. Consider refinancing your car loan if any of the following apply to you.You got talked into dealer financing with your original loan Dealer financing is very rarely a good idea. You see car dealerships are indirect lenders, which means they act as an inbetween for you and a bank or credit union. The financial institution handles the actual financing, while the dealership tacks on financing fees. So when you pay for dealer financing, you are really paying for the loan plus the added dealer fees. When people refinance their car loans from dealer financing, they report saving hundreds of dollars per year.Your score has improvedIf your credit score has improved since your initial financing, you may be eligible for a much lower car loan APR. Your credit score is one of the most important factors in the car loan APR that you will be offered. Your score can increase for a number of reasons. You have made consistent, full, on-time paymentsYou have had a negative event expire (like a bankruptcy)Your credit limit has increasedYou haven’t had a lot of credit inquiriesYour credit utilization score has increased. This ratio is determined by adding up all of your credit card balances and dividing it by your available credit. This number should ideally be less than 30%All of these events can change your credit score and have a positive impact on the car loan APR that you are offered.The market rates have dropped since you initially appliedWhen did you get your initial car financing? If it was a few years ago, chances are the market rates have dropped since then. In fact, according to an Experian study, average car loan rates dropped from 5.26% at the end of 2019 to 3.86% at the end of 2021. That’s close to a 1.5% decrease in just two years. Cutting your car loan APR by that much can add up to a lot of money in savings.How you can prepare to refinance your car loanIf you are overpaying on your car loan payments (and trust us, you probably are), there are a few steps you can take to prepare for auto loan refinance. Here are our top tips to prepare for your refinance. Jumpstart your credit scoreGive your credit score a little jumpstart before you apply for auto loan refinance. Request a copy of your credit report and review it carefully for any mistakes or errors, and report any inconsistencies immediately. Then look at all of your debts and see if there are any high interest accounts that you can pay down a little bit. Lessening your credit utilization ratio can help you increase your credit score. You can also improve your credit utilization score (and therefore increase your credit score) by requesting higher limits on your accounts.Get your documents in orderBeing as prepared as possible can help make the refinance process quick and easy. Gather up all of your necessary paperwork and upload it to make your application process as easy as possible.  You will most likely need the following documents: photo identification, your social security number, proof of residence, your car’s information (make, model, year, mileage, and VIN), proof of income, proof of insurance, and your current loan information. Use a company that specializes in auto loan refinanceThere are a lot of lenders out there that can refinance your car loan. From traditional banks, to credit unions, to dealerships, there are a lot of options. Using a company that specializes in auto refinance can help simplify this process for you and ensure that you are getting the best offers possible. At Auto Approve, you simply need to fill out some basic information, and we can handle the rest. From fast tracking your applications to helping you close the deal, Auto Approve can help you navigate the waters of refinance.Now is the perfect time to refinance your car loan, and Auto Approve is here to help.Get a free quote and start saving money today!GET A QUOTE IN 60 SECONDS

2022 is well underway, and it’s time to check in on our resolutions and goals. If your goal was to save more money, we are here to help give you a little extra motivation. With prices going through the roof and inflation creeping higher and higher every day, it’s never been more important to be smart with your money. There’s still time this year to get ahead on your finances and make 2022 your best financial year yet.Here are 5 smart money moves you can make in 2022.Get Serious About Your BudgetWe say it all the time, but it always rings true. Creating and sticking to a budget is one of the most important things you can do for your financial well being. Whatever your goal may be, whether it is to pay off debts, start a college fund, or save for a vacation, having a budget is the best way to achieve your financial goals. So here is our quick and easy guide to creating a budget:Determine Your Fixed ExpensesFixed expenses are your expenses that do not change from month to month. They will not change from month to month and can include your rent or mortgage, car payment, cable bill, trash collection, subscription services, internet, student loans, etc. Once you have located all of your fixed monthly expenses, log them in a spreadsheet.Determine Your Variable ExpensesVariable expenses are your expenses that do change from month to month for a variety of reasons. They might include your groceries, electric bill, parking fees, dining out, entertainment, and home repairs. Try to get an estimate for how much these categories cost you from month to month. Looking at your past credit card bills or receipts can help you get an approximate gauge. Then enter them on your spreadsheet as well.Determine Your IncomeDetermine what your monthly income is. What is your take home income (post tax and post deductions)?  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 in a separate column.Compare the incoming and the outgoingHow does your incoming money match up with your outgoing? Are you bringing in more than you are spending? In that case, look to see where you can invest this extra money. But what if you are spending more money then you are bringing in? If this is the case, look for places to cut your expenses. What subscription services can you cancel? Can you cut back on entertainment and dining out? 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.Pay a Little Bit More Towards Your DebtsAccording to a recent CNBC study, the average American household with debt owes $155,622, or more than $15 trillion altogether. These debts include mortgages, car loans, credit card debt, and student loans. With numbers this large, it’s important to prioritize paying off your debts sooner rather than later.Prioritize which accounts you should pay off. Credit card debt should be first on your list of debts to tackle, as the interest rates tend to be exceedingly high and these debts have a tendency to snowball. Commit to making additional payments whenever you can (and maybe even think about building an extra payment into your budget).Refinance Your LoansRefinancing is when you pay off an existing loan with a new loan, ideally a loan that has better terms. Refinancing a car to better terms often results in saving money, either in the long run by reducing the payment period or interest rate, or in the short term by reducing monthly payments. In fact, in 2021, Auto Approve customers saved, on average, over $100 a month. Interest rates are still relatively low in 2022, so now is an excellent time to consider refinancing. Here are some ways that refinancing your car loan can help you.You Can Save Money with a Lower Interest Rate You may be able to secure a lower interest rate when you refinance your car loan, either because the current market rates are low or because your own personal financial situation has improved. By lowering your interest rate, you are lowering your monthly payments and will end up saving money over the course of the loan.You Can Save Money with a Shorter Payment Period When you refinance your car loan, you may be able to change the terms of your payment period and shorten the period. This can save you money overall, as the sooner you pay back the loan, the less interest you will pay in the long run.You Can Reduce Your Monthly Payments with a Longer Payment Period If your monthly budget is a bit tight these days, refinancing your car loan is a great way to free up some monthly cash. This will allow you to pay off the loan over a longer amount of time, reducing your monthly payments significantly. And while you will end up paying a bit more over the length of the loan because you will be paying interest for a longer period of time, it can give you much needed breathing room if you are currently struggling.Diversify Your Income StreamsIf you have a bit of extra time on your hands, consider getting a side job. There have never been more opportunities for people to get a few more sources of income, and some of them can be done from the comfort of your home. Delivery groceries with Instacart or ShiptBecome a rideshare driverBecome a virtual assistantWork as a transcriptionistWork in someone’s home as a babysitter, house cleaner or tutorBecome a pet sitterTake a passion or hobby and try blogging or setting up an Etsy storeWhile none of these will get you rich quick, they all provide some additional and flexible sources of income. And an extra few hundred bucks a month can make a big difference in your budgeting and savings plans.Take Advantage of Your Employee BenefitsLook carefully through all of your employee paperwork to find out what employee benefits you are offered. So many people do not take advantage of these benefits, and it can mean money down the drain. Employer Contribution Matching ProgramsDoes your employer match your retirement fund contributions? Many companies offer either partial matching or dollar for dollar matching. Partial matching: They will match part of the money that you put in. This varies from employer to employer, but it is common for employers to match 50% of your contributions. This is usually capped at 6% of your salary (they will contribute up to 3% of your salary).Dollar for dollar matching: They will match your contributions in full up to a certain amount. If you are dollar for dollar up to 3%, your employer will match only up to 3% of your salary.Make sure that you are maxing out your contributions every year. If you do not contribute the maximum amount to be matched, you are walking away from free money.Health Savings AccountsEmployers often offer Health Savings Accounts, and there are three main types that may be available: HSAs:  These accounts are owned by the employee, and contributions can come from both the employer and the employee. Money is placed tax-free in an account and can be used for qualified medical expenses. These are usually only available if you have a high deductible plan. Many companies will contribute money per year to offset having higher deductibles.FSAs: These accounts are owned by the employer and deductions are taken from paychecks as tax-free contributions. Employees can be reimbursed out of this account for qualified medical expenses. HRAs: These accounts are set up by the employer to offset medical expenses. Employers are the only contributors to these types of accounts, so you cannot add your own contributions. This money can be rolled over from year to year, so if you don’t use the total amount one year you can use it the following year. If any of these options are available to you, do your research and decide what’s best for you. But with the rising cost of healthcare, health spending accounts are more important now than everAdditional BenefitsAdditional employee benefits may be available to you and can vary widely. Some of these benefits may include:Life insuranceDisability insuranceDependent care optionsLegal plansFree gym membershipTuition reimbursement or supportFree parkingProfessional development programTalk to your human resources department if you have questions about your eligibility, but be sure that you are taking advantage of any and all employee benefits that are offered. After all, they are part of your salary.And those are our top five smart money moves you can make in 2022.We hope this has helped motivate you to make 2022 your best financial year yet. From maximizing your benefits to refinancing your car loan, there are a lot of ways to get more bang for buck.Get started with Auto Approve today to see how much we can save you when you refinance your car loan!GET A QUOTE IN 60 SECONDS

The market values are still low and you know that now is the time to refinance your car loan. But how do you know if you qualify? Is there a minimum credit score that you need to refinance your car? Today we are talking about what credit score you need to refinance a car and how you can get the best auto refinance rates.What factors will impact my auto refinance rate?The car rate APR that you are offered by lenders depends on a few different factors, mainly your credit score, your income, and your vehicle.Your Credit ScoreYour credit score is a large factor in the car loan APR that you will be offered. Your credit score tells lenders how creditworthy you are, and how likely you are to pay back your loan.If you are wondering “what credit score do I need to refinance my car”, there is no magic number. But the higher your score is, the better the rate you are offered will be.Your IncomeYour income is also taken into consideration for your car loan APR. Lenders want to know that you have a steady source of income to meet your payments. They will need to see proof of income, such as pay stubs, to validate your income.In addition, lenders consider what’s called your debt to income ratio (DTI). This is a simple ratio of your monthly debt payments compared to your monthly income. For example if your monthly income is $5,000 and your monthly debts are $2,000, your DTI is 40%. This takes into consideration all of your debts (including rent/mortgage, child support, student loans, credit cards, etc.) and all of your sources of income (including salary, tips, rental income, investment dividends, etc.).Just like with your credit score, there is no magic DTI that you need for refinancing a car loan. But a RateGenius study between 2015-2019 found that 90% of approved customers had a DTI below 50%. Your VehicleYour car is another consideration when calculating your car loan APR. It does not matter what type of car you are driving, whether it is a Honda or a BMW, but rather how much your car is worth compared to how much money you are borrowing.Lenders use a loan-to-value ratio (LTV) calculation to determine if your vehicle qualifies for refinancing. Auto loans are called secured loans, which means that if you should default on payments, your car is the collateral and will be repossessed. The LTV will help lenders decide if they can recoup their losses should you default and they need to resell your car.You can calculate your vehicle’s LTV with the following information: your current loan balance and your car’s estimated value (you can use Kelley Blue Book or Edmunds to get a sense of this number). Then use the following equation:Total Loan Balance/ Vehicle’s Current Value = Loan to Value RatioSo if your current loan balance is $15,000 and your car’s currently valued at $16,000, your loan to value ratio is 93.75%. Once again, there is no magic number you need to qualify for auto loan refinancing, but the lower the LTV, the better. Another RateGenius study between 2015-2019 found that 90% of approved applicants had an LTV below 123%. Generally having an LTV below 100% is considered good.What is the minimum credit score I need to refinance?While your income and vehicle matter somewhat, no factor is more important to your auto refinance rate than your credit score. Credit scores are broken down in five categories: Super Prime, Prime, Near Prime, Subprime, and Deep Subprime. Your ability to refinance and the rate at which you can refinance your car loan will depend on what category you fall into.Exceptional (Super Prime): 800-850Very good (Prime): 740-799Good (Near Prime): 670-739Fair (Subprime): 580-669Very poor (Deep Subprime): 300-579Your credit score is dependent on five separate considerations: payment history (35%), accounts owed (30%), length of credit history (15%), credit mix (10$), and new credit (10%). All of these factors affect your overall credit score, but some categories carry more weight than others. Payment history and accounts owed make up for the heftiest part of your credit score.Your credit score will drastically impact the car loan APR that you are offered when you refinance. If your credit score is deep subprime (with a credit score below 579), you may have trouble refinance your car loan at all, and if you are able to refinance, you will most likely get a very high rate. If your credit score is super prime, you will get the best car loan APRs available. Let’s look at the latest market trends available to look at some average car loan APRs. According to Experian’s State of Auto Finance 2021 Q4, we can see the following averages.Credit ScoreAverage Loan Rate Offered 2021 Q4 (New Car)Exceptional (Super Prime): 800-8502.47%Very good (Prime): 740-7993.51%Good (Near Prime): 670-7396.07%Fair (Subprime): 580-6699.41%Very poor (Deep Subprime): 300-57912.53%The rate increased rather drastically between credit score tiers. So while you still may qualify for financing or refinancing with a subprime or deep subprime credit score, you will be spending a lot more on interest.Focus on increasing your credit score to secure a good car loan APR.How can I increase my odds of getting approved for vehicle refinancing?To increase your odds of getting approved for car loan refinancing (and increase your odds of getting a good car loan APR), focus on improving each of the areas from above: your credit score, your income, and your vehicle. But how?Improve your Credit ScoreImproving your credit score can help your odds of getting a good car loan APR. Consider the following measures to improve your score.Check your credit report. Dispute any errors or mistakes that you notice, as these can impact your credit score negatively.Make on time payments. Your payment history makes up 35% of your credit score, so prioritizing this can help your score a great deal. Sign up for autopay if you can to ensure you are not missing any payments.Pay down your debts. Reducing your credit utilization ratio by paying down debts can have a positive effect on your credit score. This ratio is part of your accounts owed category, which makes up 30% of your credit score. Request higher limits. Requesting higher limits from your credit accounts can also help improve your credit utilization ratio and boost your credit score.Hold off on opening other new accounts. When you open a new account, it triggers a hard inquiry on your credit report, which can cause your score to dip slightly. It will also affect your length of credit history. While these will not drastically change your score, they can be the difference between a good credit score and an excellent credit score.Improve your Debt to Income RatioIt’s also worthwhile to try to improve your debt to income ratio. While you may not be able to change your salary, you can prioritize paying down the principals on your existing accounts so that your ratio lowers.Improve your Loan to Value RatioYour loan to value ratio depends heavily on the car you are driving. While you may not be able to change your car, there are steps you can take to slow down the depreciation on your car. One of the biggest causes of depreciation is mileage. Try to cut down on your mileage if possible to stay ahead of depreciation. Routine maintenance and care of your car can also help curb depreciation.Some cars simply hold their value more than others do. You should keep that in mind when you are initially car shopping. But taking care of your car and cutting down on mileage may help improve your loan-to-value ratio.While there is no magic credit score that you need to refinance your car, the lower your credit score is the better your chances are for approval (and the better the rates you are offered will be).And that’s what you need to know about credit scores that qualify for refinancing!Focusing on increasing your credit score, decreasing your debt to income ratio, and decreasing your loan to value ratios will help you secure financing approval.If you are still unsure of how much you could be saving with an auto loan refinance, contact the experts at Auto Approve today! The car loan APRs are low, so now is the perfect time to refinance your car loan. We make refinancing simple: just fill out your information and you will have car loan refinance offers in minutes. We handle all of the pesky paperwork so you don’t have to (yes, even the DMV)!So what are you waiting for, get started with Auto Approve today!GET A QUOTE IN 60 SECONDS