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You’ve always dreamed of owning a motorcycle, but maybe you’ve never exactly dreamed of having a motorcycle financing plan. Making the jump and finally buying your first motorcycle (or second, or sixth) is exciting, and if you have the extra cash every month to do it, then why not? The good news is that getting a motorcycle loan isn’t difficult as long as you have the right qualifications. Here’s how you can get a motorcycle loan and finally get the bike of your dreams.Is it harder to get a motorcycle loan?A common misconception is that it is harder to get a motorcycle loan than it is to get a regular auto loan. But it is actually not any harder to qualify for a motorcycle loan than it is for an auto loan. In fact, motorcycle loans are typically for less money since motorcycles tend to be cheaper than cars, which means it may be easier for you to meet the financing requirements. Qualifying for a motorcycle loan is similar to qualifying for a regular automobile loan. You will need to have the following to be able to motorcycle financing:A good credit scoreA good debt to income ratioA down paymentProof of employmentProof of residence As long as you can make a down payment and are in a relatively stable financial position, secring motorcycle financing should be possible.Where can I finance a motorcycle?You can get a motorcycle loan at a number of different lending institutions. Traditional banks, online lenders, credit unions, and dealerships all tend to offer motorcycle financing. Traditional banks offer names that you can trust, so many people feel comfortable going with a recognizable bank. Online lenders can often beat the rates of traditional banks because they lack a lot of the overhead of traditional banks, but they may not offer the same sense of security. You can usually find the best rates at credit unions, but these institutions tend to have membership requirements that you may not meet. Dealerships will often offer financing even if you aren’t in the best financial position, but their rates tend to be higher. If you do not want to try traditional financing you can look into another type of financing, such as peer to peer financing or taking out a home equity line of credit. But these can be riskier options. You can also consider leasing a motorcycle instead of buying one. It is usually easier to get approved for a lease and your monthly payments will be significantly lower than financing payments.How much should I put down on a motorcycle loan?Motorcycle financing is similar to regular automobile financing, and you should treat the down payment as such. We recommend putting at least 10% down, but putting 20% down if you can will help you in a few ways. A larger down payment will mean that your principal is lower and therefore your monthly payments will be lower. A large down payment can also help your loan from becoming underwater, which means that you owe more money on your bike than it is worth. Underwater loans occur when depreciation outpaces how quickly you are able to pay off your loan, so it’s important to try to stay on top of (or ahead of) your financing payments.How many months is the average motorcycle loan?Motorcycle loans are typically anywhere from 12 to 60 months in length. A longer repayment period means smaller monthly payments, but it also means that you will be paying off your loan for a longer period of time. That means you will pay more in interest over the life of your loan. It’s generally recommended to keep your repayment period shorter so that you can save money in interest. If you need an extremely long repayment period to afford your monthly payments, chances are you probably don’t have enough money to get a bike in the first place. A 24-36 month loan is usually a good length for a motorcycle loan repayment plan that will allow you to have manageable monthly payments while staying well ahead of depreciation.How can I get a motorcycle loan?Getting a motorcycle loan is pretty straightforward. Follow the steps below to get the best motorcycle loan possible. Step 1. Prepare your finances.The first step to getting any loan is to prepare your finances. You want to ensure that your credit score is in good shape and your debt to income ratio is good. This will help you to get the best motorcycle loan APR possible. Paying down balances that have a high credit utilization ratio will help your credit immensely, as will requesting higher credit limits.  The APR you are offered is based on a number of factors including the prevailing market rates and repayment plan you select. But the biggest factor that you can control is your credit score. Request a copy of your credit report so that you can review it thoroughly. Are there any mistakes in your payment history? Are all of your debts accurate? Are there any negative events that shouldn’t be listed on your report anymore? Taking the time to review all of this can save you a lot of money in the long run. Step 2. Decide on a budget.The next step is to take a close look at your overall budget to determine how much you can afford to spend on a motorcycle. What type of monthly payments can you afford? An online calculator can help you figure out what type of loan you can afford, which will help you determine what type of bike you can afford.  If you have a car loan you may want to consider refinancing your loan. Chances are you are overpaying and if you refinance your loan with Auto Approve you can save a lot of money.  Step 3. Find a motorcycle.Once you have determined how much you can spend you can determine which bike is right for you. There are a lot of different types of bike on the market, so the right bike will depend on your skill level, how you intend to use your bike, and your budget. Check out our guide to buying a beginners bike to help narrow down your options. Step 4. Research lenders and apply.Once you have selected your bike and know your budget you can begin applying for a motorcycle loan. We recommend applying with 3-5 different lenders to give you the best chance of finding a low motorcycle loan APR. Be sure to consider customer reviews when selecting which lenders. Consulting the Better Business Bureau and TrustPilot can help you find out if any lenders have major complaints or downfalls. You want to apply to all of your loans at the same time (during the same 14 day window) so that they will all count as one hit on your credit score. If you space out your applications it will have a negative effect on your credit. When you get all of your loan offers in be sure to consider the following:The APR offeredThe loan terms and conditions, including prepayment penalties.Customer satisfaction. Step 5. Sign and drive.Once you select the loan that is right for you the lender will send payment to the dealership and you can take your new bike home once the payment is complete. You will need to ensure that the motorcycle is registered and insured per your states requirements. Can I refinance a motorcycle loan? Sometimes people end up in bad loan situations. There are a number of reasons why a loan might not be working for you anymore:Your interest rate is too high.Your repayment period is too long and you are paying too much in interest.Your repayment period is too short and you are having trouble making your monthly payments.You are unhappy with your lender.You want to add or remove a cosigner. Whatever your reason is for wanting to refinance, Auto Approve can help. Auto Approve refinances motorcycle loans all the time and can even help you add a motorcycle protection plan onto your loan so that you can get some more peace of mind. Protection plans from Auto Approve come with the following:Your choice of certified mechanic for repairs.24/7 roadside assistanceRental car reimbursementCourtesy towingAnd more Just because you end up in a bad financing relationship doesn’t mean you have to stay in a bad financing relationship. Let Auto Approve help you break up with your current lender and save thousands.That’s how you can get a motorcycle loan (and refinance your existing motorcycle loan). Getting a motorcycle loan isn’t complicated, but it does involve research, preparation, and lots of thought. If you have a motorcycle loan that you are unhappy with, contact Auto Approve today! Our agents can help you to get a new loan that works for you and your budget. So don’t wait, get in touch today!GET A QUOTE IN 60 SECONDS

If you are a contract worker, you may not have the same proof of income and employment most people have. This can make financing a car as a self employed person seem more difficult. But if you are prepared and have the right information you can still get a car loan as long as you meet the lender’s requirements.Here’s how to get a car loan as a contract worker.What is a 1099 worker? A 1099 worker, or independent contractor, is a worker who is not employed as a full time employee by a company but instead works for them on a contract basis. Employers will pay them directly and will not through the company payroll system. This means that taxes are not deducted from the contractor’s pay. There are pros and cons to being a contractor and you typically have much more flexibility than you would as a full time worker. But one significant disadvantage of contract work is that it is not considered to be as stable as full time employment. Contract income can fluctuate greatly from month to month as well, which can make lending a little riskier for a financial institution.Can I buy a car if I’m self-employed?While you may be considered a slightly riskier loan candidate, it is absolutely possible to finance a car as a 1099 worker. While lending requirements vary from lender to lender, in general you should be able to finance a car if you meet the following criteria:Have a monthly income of at least $1,500 before taxes.Can make a down payment of at least $1,000 or 10% of the vehicle’s selling price. Additionally, a good credit score and good debt-to income ratio will help you to secure a loan that has a good car loan interest rate..What do I need to prove income as a 1099 worker? As a 1099 worker you do not have paycheck stubs that are typically required by lenders. These stubs prove that you not only have a steady job, but that you make enough money to afford the car you are buying. So what can you show a potential lender to prove your income? Your Tax ReturnYour annual tax return (form 1040) is the most straightforward and legitimate way to prove that you have steady income. Employers are only required to file a 1099 for your work if they have paid you more than $600, which may be an issue if you do a lot of small jobs for different companies. But in general for most contractors a form 1040 is your best bet to prove income and employment. Your 1099 FormsIf you do not have your tax form on hand you can show lenders your 1099 forms. These forms are sent to you yearly by any company that has paid you over $600. Bank StatementsIf you do not have a 1099 from a company then a bank statement is the best way to prove your income to a lender. If you have separate accounts for your business and personal life this will be easy to provide, but if they are tangled up you will need to go through and sort out which expenses are personal and which are business.  A Pay StubYou can actually create a pay stub for yourself that will count as proof of income, so long as you include the following information:Name and address of the company you provided services for.Your job title.Number of hours worked during the pay period.Your gross pay. This is the total amount received for your work.Deductions. You will need to calculate and deduct the following from your pay stub: state federal taxes, state and local taxes, social security, and Medicare.Your net pay. This is the final amount you earned after deductions.Employment Verification LettersIf you have worked with a particular employer for a while it might be a good idea to ask them to write you an employer verification letter. This letter will show that you make money and have a good relationship and history with your employer.How to get a car loan as a 1099 worker. Getting a car loan as a 1099 worker is almost identical to the process for a W2 worker. As long as you are organized and have your proof of income ready you should not have a problem applying for a car loan. The basic steps are the same:  Gather your documents.Compare lenders.Apply.Sign and Drive. But as we mentioned before, 1099 workers are considered riskier lenders than regularly employed people. Here are a few tips on how to get the best car loan rate when buying a new car. Tip #1. Make a larger down payment if possible.We always recommend a down payment when buying a car. A down payment of at least 10% (but preferably 20%) will help keep your monthly loan payments to a more manageable amount, get you a better car loan interest rate, and will help to make sure your loan doesn’t end up underwater. But making an even larger down payment will help you even more. Your interest rate will decrease as your down payment increases as the lender becomes more and more confident in your repayment. Tip #2. Shop around for a car loan.Again, we always recommend this, but lender requirements for 1099 workers will vary greatly from bank to bank so it’s even more important to shop around when you are a contractor. While you won’t find loans that are specifically designed for 1099 workers, you will find that certain lenders will work with you more than others. Tip #3. Get your credit in top shape before applying. A good credit score will prove to the lender that you are responsible with your money and have a history of paying your bills on time. Taking the time to pay down high interest debts, enrolling in autopay to make sure you never miss a payment, and requesting higher limits on your accounts will all help to boost your credit score and earn you a better car loan interest rate. That’s how to get a car loan as a 1099 worker.Contract work offers a lot of control and flexibility, but there are certain disadvantages that come with it. Proving employment can take a little more work, but if you are organized and keep track of your income and expenses you should have no problem securing a car loan. If you are overpaying on your car loan consider refinancing with Auto Approve. Get in touch today to find out home much money you could be saving! GET A QUOTE IN 60 SECONDS

There are a number of reasons why a person may want to change their insurance carrier. Maybe they are unhappy with the coverage or the customer service, or maybe they just found a better premium elsewhere.  Here’s how you can change your car insurance. How often should you change car insurance? You should get in the routine of comparing car insurance premiums about once a year. This will help ensure that you are always getting a good premium. You do not need to wait until your policy ends to switch. You should actually make sure that there is some overlap so that you do not risk being without insurance, even for a day. A lapse in insurance can open you up to a lot of risk. While you shouldn’t necessarily change policies every year, a yearly check in will help to make sure the premiums are staying competitive.When should I change my car insurance?There are a number of things that may happen in your life that will tell you that it is time to change insurance.  You moved.If you move to a different zip code, chances are your premium will be affected. You need to notify your insurance company when you move, even if it is just a temporary move. Your location is a key factor when determining premiums. So when you move it is a good idea to look around the area and see if you can find a better premium elsewhere. Your premium has increased.When it’s time for your yearly renewal, you may see an increase in premium. This is why we recommend comparing prices every year. If you notice an increase there is a good chance you may be able to find a better premium elsewhere. You have a major change in your life.Because insurance premiums are calculated based on a number of factors, many life changes can affect how much you pay. Getting married, starting a new job, and buying a new home may all affect your insurance premium. Looking around and comparing coverage can help ensure you don’t pay too much. Your child begins driving.When your child finally gets on the road, it is scary for a lot of reasons. And one of those reasons is the increase in insurance premiums. Inexperienced drivers tend to have higher premiums because they are more of a risk on the road than other more experienced drivers. So when it’s time to get them insured be sure to look around and compare your options. Some insurance companies cater more to younger drivers and have better good student discounts than others.  You buy a new car or get an additional car.Insurance premiums depend largely on the vehicle you drive as well. A new car can change your premium significantly so it’s best to check in and compare whenever you get a new vehicle.What are some car insurance terms I should know? Before we get into changing policies, let’s go over some of the terms you should know when it comes to car insurance. Automobile Insurance: Insurance that protects against losses involving automobiles. Car insurance policies vary greatly from policy to policy and company to company. The coverage will depend on the state requirements and the wants of the policy holder. Liability for bodily injury and property damage, medical payments, uninsured motorist, comprehensive, and collision are some of the common coverages of car insurance. Comprehensive Coverage: Pays for damage to your car caused by a reason other than collision. Fire, vandalism, flooding, etc all fall under this coverage.  Collision: Pays for damage to your car caused by contact with another vehicle or with another object (tree, sign, structure, person, etc).  Deductible:  The amount that the policyholder is responsible to pay before the insurance begins to pay (applies to comprehensive or collision coverage only). Liability Insurance: Coverage for a policyholder's liability if they cause an accident that results in injuries and/or damage to other persons or property.  Loan Gap Coverage: This covers the difference between the value of the car and the amount a person owes to a lender if the car is financed.  Medical Payments Coverage: Covers medical costs resulting from an auto accident for anyone in your car (you and your passengers) regardless of fault.   Personal Injury Protection: Covers medical treatment, lost wages, or other accident–related expenses.  Policy: An insurance contract between the insurer and the insured. Premium: The price of insurance policy, typically paid every year. Surcharge:  An extra charge added onto the premium by an insurance company. This usually happens when there is a moving violation or at-fault accident.  Uninsured Motorist Coverage: Provides coverage for a policyholder when there is a collision with a driver who does not have insurance (or sufficient liability limits) to pay for damages.How to change your car insurance.When it’s time to change your insurance policy you can follow these simple steps.  Compare policies.When you look at insurance policies there are a number of things that you need to compare. First things first, be sure that you enter accurate vehicle information when comparing policies. A VIN number will help ensure that the policies are accurate. Be sure to look at the following:Coverages. Look at what is specifically covered under each policy. Do they have the same coverages (collision, medical, uninsured, etc)?Deductibles. You will have a choice of deductibles which will affect the premiums you are offered. Making sure that you have the same (or very similar deductibles) will help you compare the policies more accurately. Liability limits. You will also need to compare the liability limits to ensure that the policies are covering similar things. Compare insurance companies.Additionally, think about the insurance company itself and not just the policy. Are the customer satisfaction ratings high? Do they pay out claims or do people seem unhappy with how payouts work? Select your policy and avoid a gap.When you find the policy that is right for you, be sure to start your new policy before canceling your old one. Avoiding a gap in coverage is very important. Your new company is typically not allowed to cancel on your behalf, so it will be up to you to cancel it.  Cancel your old policy. When you call to cancel your old insurance company may require proof of new insurance. They will then cancel your policy and refund you any money that remains on your premium. (If you are only 6 months into your 12 month policy, they will refund you half of your premium minus any cancellation fees).That’s how you change insurance companies.Changing insurance companies can save you a lot of money, and so can refinancing your car loan. Contact Auto Approve today for your free quote!GET A QUOTE IN 60 SECONDS

You’ve dreamt of owning a motorcycle for as long as you can remember, and you have finally decided to make that dream a reality. Maybe you are looking for a bike to take on leisurely rides, or maybe you are looking for more of an adventure. But whatever your reason is, it can be hard to know where to start.Here’s your ultimate guide to buying a beginner motorcycle.Are you prepared to own a bike? First things first, are you ready to own your own bike? You should ask yourself the following questions before you go too far down the rabbit hole: Do I have a motorcycle license? Do I know how to get one?Is my family ok with me buying a motorcycle?Do I know how to ride a motorcycle? How and where can I practice?Where will I park my motorcycle?Can I afford a motorcycle? Think about all of these questions and be sure that you have good answers for all of them before moving on.What type of bike do you need? There are several different styles of bike on the market, all of which are good for different things. Think about how you intend to use your bike. Do you want to commute? Do you want to take it out on the weekends for fun? Do you want to take it on long trips? In general, beginning motorcyclists will be best suited to get either a cruiser, sports bike, or naked bike. Each of these categories offers lightweight options that are easy for beginners to maneuver comfortably. Here are your different options when it comes to a motorcycle style.CruiserA cruiser is a great option for a beginner rider. They are powerful, stylish, and have a low seat height and relaxed seating position which makes them comfortable for new riders. They are better suited for shorter distances, so if you plan on commuting or taking short weekend trips, this might be a great option for you.  Top cruiser pick for beginners: Honda Rebel 500 SportIf your love for motorcycles was born out of a need for speed, a sport bike might be a better option. Sport bikes have a rapid acceleration which makes them better suited for experienced riders, but if you start on the lower end of the power spectrum there are a number of options available.  Top sport pick for beginners: Kawasaki Z650RS NakedA naked bike is a bike between two worlds, settled between the sport bikes and cruisers. Also referred to as standard bikes, they have an open bike frame that makes them similar to sports bikes but without the extra bulk. They also have a more upright seating arrangement, which makes them an ideal beginner bike. In fact many naked bikes are created especially with beginner riders in mind. Top naked pick for beginners: KTM 390 Duke Touring A touring bike is not designed for beginners. They are the biggest and heaviest bikes on the market, designed for long trips and far distances. A touring bike is more of an aspirational goal for when you have mastered your beginner bike and are ready to level up your motorcycle game.  AdventureAgain, an adventure bike is not designed for beginners. These powerful bikes are designed for off roading adventures and have rugged features to help them perform in different types of environments. Adventure bikes should also be viewed as aspirational bikes, a goal to have when you are very comfortable with your beginner bike.  What size bike should you get?In addition to determining what type of bike you should get, you will also need to decide on an engine size. If you are a beginner, a smaller engine size is definitely a good idea. Experienced riders know that smaller engines give you the room you need to learn the ropes. When it comes to something as powerful as a motorcycle, you want some room to make mistakes. If you make a mistake your engine size might mean the difference between some bumps and bruises or a trip to the emergency room.  Engine sizes range from 125cc to over 2000 cc. The lower the cc is, the easier the bike will be to handle. When you test drive be sure to try out some different engine sizes. Some beginners might find that a 300 cc engine is powerful enough for their needs and can still get them around on the highway. Others may easily handle a 500 cc or 600 cc engine and find that to be a better fit. Starting lower and increasing the engine size will help you find the perfect size for you. Should you buy a new motorcycle or a used motorcycle?When you have settled on what type of motorcycle is best for you, you will need to decide if you want to buy a new bike or a used bike. New bikes are certainly safer as they tend to offer more traction control and better safety features than older bikes. While a used motorcycle will be more affordable, newer bikes are actually cheaper to insure and will require less maintenance than a used bike. Newer bikes also tend to get better gas mileage and will come with a factory warranty.  If you prefer to buy a used motorcycle, it’s important to do your research. Be sure that the bike doesn't have too many miles (fewer than 20,000 miles is ideal). You should also bring along an experienced motorcycle rider who can help determine if there are any serious issues with the bike. If you don’t know any bike enthusiasts and aren’t very knowledgeable yourself, stick with a new bike.How does it ride?You should be sure to test drive any bike that you are considering. Your driving experience–as well as your safety–will depend on it. Here are some notes to keep in mind:When you sit on your bike you should be able to place your feet flat on the ground.Your feet should rest comfortably on the pegs.Your arms should reach the handlebars and you should be able to turn them from side to side without shifting your body. You should be able to pick the bike up by yourself and push it around without help.  While bigger bikes may look cool and have the style you want, they are not suitable for everyone. Make sure you find a bike that is that right size and fit for your body type. There are a lot of bikes on the market and there is something for everyone.What brand of bike should you get?Iconic brands come with higher price tags. But these brands also tend to come with higher resale value, more reliability, and oftentimes easier repairs. The more popular a brand or model is, the easier of a time you will have if something goes wrong. What bike can you afford? Another huge factor to consider when buying a bike is your budget. Chances are your bike will not be your main mode of transportation if you are a beginner. This means that your motorcycle budget will be outside of your normal budget, separate from your car payment and other costs. A motorcycle is a luxury, and you will not only need to think about how you will pay for the actual bike, but you will need to pay for insurance and maintenance as well. If you can buy your bike upfront and avoid financing, that is always a great option. But if you are looking to finance be sure to consider the following:How can I pay for a new bike? If you can save and pay for your bike upfront that is a great option. You can save a lot of money in interest and avoid the hassle of financing. But if you are looking to finance you should ensure that your credit is in good shape and that you are in a good position to make payments every month. Avoid buying a bike on your credit card, even if it seems like an easy option. You will pay a lot more in interest and getting behind on credit card payments can put you in a ton of debt fast. It’s a much better idea to get a loan instead.How much of a down payment can I afford to make? Making a down payment of 20% is a good idea to keep your loan from going underwater and to help keep your payments affordable. A higher down payment will also make you a more desirable candidate for lenders.Can I afford the extras as well? Remember that you will need to pay for insurance, registration, maintenance, and safety gear as well as the bike itself. And that’s everything you need to know about buying a beginner motorcycle.If you have your heart set on buying a motorcycle, make sure that you buy a bike that is right for you and your needs. Consider safety, practicality, and affordability when making your decision. If you already have a motorcycle and are looking to refinance, contact Auto Approve today!GET A QUOTE IN 60 SECONDS

If you are struggling financially, debt consolidation is one way that you can get a grip on your finances. But debt consolidation isn’t a magic process that erases your debt, and in some instances it might actually put you in more debt. So how does debt consolidation work and how do you know if it’s a good move for you?Here’s everything you need to know about debt consolidation.What is debt consolidation?Debt consolidation is when you have multiple debts across different accounts that you combine into one single account. There are three types of debt that you can consolidate: credit card debt, student loan debt and high-interest personal loan debt. These three types of debt can very easily get out of hand and when you have debts across many different accounts it is easy to get overwhelmed. But consolidating your debt will simplify your payments and possibly save you money. What are the benefits of debt consolidation?It simplifies your life.Debt consolidation can be beneficial for quite a few reasons. First and foremost it will simplify your life. If you have several credit card debts, they all have their own payment due date, minimum payments, interest accruals, and late payments. This means that every month you have a lot to juggle and a lot of minimum payments to make. You are always one missed payment away from an increased interest rate or a late fee. But if you can move all of these debts to one account you will only have to worry about one due date and one minimum payment. This can make your life much easier and make your finances much easier to manage.It can save you money.When you have several accounts, chances are that a few of them have high interest rates. But when you consolidate your debt you will consolidate them into one account with one interest rate, and there's a good chance that it can save you money on those high interest accounts. You can help your credit score.Your credit score takes a lot of factors into consideration and there are many things that can cause your credit score to dip when you have debts across a lot of accounts. When you have a lot of accounts you are much more likely to miss a payment, make a late payment, or make an incomplete payment. All of these things can cause your credit score to take a hit. But if you consolidate your debts you will have a much better chance of keeping up with your payments and helping your credit score.What are the drawbacks of debt consolidation?While there are many benefits to debt consolidation, there are a few drawbacks that you may need to consider.  It may cost you some money upfront.Depending on how you consolidate your debt there might be some upfront fees that you are required to pay. Loan origination fees and balance transfer fees can both eat into any savings that you might make by consolidating. Secured loans can put you at risk.If you take out a secured loan, such as a home equity loan, you can put yourself in serious financial risk. If you fall behind on payments you could even lose your home. You might end up paying more overall.If you are having trouble every month keeping up with payments, consolidation can help you to extend your repayment periods. This will help to keep your monthly payments low so that you can keep your head above water, but this also may result in paying more interest over the life of your loan.How can you consolidate debt?When it comes to consolidation, there are several different ways you can consolidate your debt, each with their own pros and cons.You can do it yourself with a low interest credit card balance transfer.One way to consolidate your credit card debt yourself is to transfer all of your debt to a low interest credit card. You can transfer your balances yourself and pay a balance transfer fee. After that your debt will be located under one account (and only have one payment).The pros: You can easily do this yourself and find a credit card that has a low (or no) interest promotional balance transfer rate. The cons: The promotional rates usually have an expiration date and you will then be required to pay the full rate. If you are late on a payment the bank may increase your rate and you will end up in more debt than you were in before.You can get a debt consolidation loan.Many banks, credit unions, and installment lenders offer specific loans that are designed for debt consolidation. When you take out a consolidation loan your lender will pay off your debts on your behalf and you will pay your new lender for the new combined debts.  The pros: You can shop around to get a good consolidation rate that may be less than some of your other accounts. The cons: There is a good chance you will pay more over the life of your loan. Your repayment period will extend so that your monthly payments are affordable, but this means that you will pay interest over a longer period of time.You can use a home equity loan to consolidate your debt.If you own a home you can actually borrow against the equity in your home. You can use this money to pay off your debts, and then you will make payments back to your mortgage company. The pros: Home equity loans usually have lower interest rates than other loans out on the market. The cons: If you fail to make payments on your home equity loan you can actually lose your house. It is a risky way to borrow money if you are in a tight financial situation.You can borrow from a retirement account.If you have a retirement account set up such as a 401(k) you may be able to borrow against your retirement account to consolidate your debts. You are typically allowed to borrow the greater of $10,000 or 50% of your account balance, or $50,000, whichever is less. The pros: There is no credit check involved and any interest that you pay on your loan goes back into your account.The cons: If you leave your job you may be required to pay back the money by the following tax season and face penalties if you cannot. You will also miss out on any gains that you may have been entitled to during that time.You can get on a debt management plan.If you are struggling and it feels like you are in over your head, a debt management plan might be the answer for you. These plans are created by non profit companies that will help you organize your finances and get on a payment plan that works for you. The pros: You can get professional help to navigate your debt repayment. They will help you to negotiate rates and help eliminate fees that you otherwise might be required to pay.The cons: You may be required to close some of your credit card accounts as a stipulation. This can cause your credit score to dip and can affect your finances in the future.Should I consolidate my debt?Debt consolidation is a good option if you have good credit, have a lot of high interest debt, and you have a plan for the future. If you have good credit you will be able to secure a reasonable debt consolidation interest rate and will most likely be able to reduce the high interest rate you are currently paying. But it’s important that you have a plan for the future. You want to ensure that you can pay off your consolidation loan, avoid accumulating new debt, and continue paying your other bills and obligations. A well thought out budget will help you to achieve this. You can look for other opportunities to reduce your monthly payments, such as refinancing your car loan. Debt consolidation might not be a great option if you have a bad credit score and/or do not have a lot of debt. A bad credit score means you may not get a good interest rate, and if you are only in a small amount of debt you will likely not see a lot of benefits in consolidation. That’s everything you need to know about debt consolidation. Debt consolidation is a great option for many people who find themselves struggling to keep up with payments every month. Consolidating can help you to simplify your payments and reduce the amount you owe every month.  Refinancing your car loan is another great way you can help to reduce the amount you are paying every month. If you have a car loan, contact Auto Approve today. Our experts can help you determine if refinancing is right for you (and show you just how much money you could be saving!)GET A QUOTE IN 60 SECONDS

Summer is a great time to recharge and refresh with vacations, trips to the beach, and relaxing afternoons at home enjoying the beautiful weather. But it can also be a great time to check in with our finances and get a restart before the hustle and bustle of fall comes our way. If you have a car that is financed, you may be wondering if a car loan refinance will help you save some cash. Here’s how you can tell if you should refinance your car loan in summer 2023. What is car loan refinancing?Car loan refinancing is when you get a new car loan that will replace your existing loan. Refinancing a loan will help you to get a better interest rate, change your repayment period, and change who is or is not a cosigner on the loan.When you refinance your loan you will go through the same process as you did during your initial financing. You will research lenders, apply for a loan, and select the loan that has the best terms, conditions, and car loan interest rate. And that’s it! It’s incredibly simple, and there are companies out there like Auto Approve who can help you navigate the world of refinance and help you through the application process. When you select a loan that is right for you, your new lender will pay off your old loan directly and you will begin making payments to your new lender. And voila–your loan is refinanced and you can start saving money immediately. When should you refinance your car loan?There are a number of signs that the time is right to refinance your car loan. You should know the terms and conditions of your existing loan before you seek refinance, as this will help ensure that the new loan you get will be better.Your credit score has improved.The car loan APR that you are offered is very dependent on your credit score. In fact your credit score is the biggest factor that you have control over when it comes to securing a loan. The rate that you are offered will be based on what credit tier you are in. Your credit score will fall into one the following categories:800 to 850: Excellent740 to 799: Very good670 to 739: Good580 to 669: Fair300 to 579: Poor In general you will be offered a good car loan interest rate if your credit score is in the very good and excellent range. As your score decreases, the interest rate that you will be offered will increase. Your credit score is based on five key factors in your personal finance: your payment history, credit utilization, length of credit history, credit mix, and new credit accounts. There are many reasons why your credit may have increased since your initial financing:You paid off some debt.You have been making consistent on time payments.Your available credit increased.You had a negative event expire.And more.Any improvement to your credit score can help save you a lot of money in interest, especially if it bumps you into a different category. But in general if there has been an increase to your credit score it is a good idea to think about car loan refinancing.You want to change your repayment period.Another benefit of refinancing is that you can change your repayment period. There are two ways that this can help you: it can either save you money or it can buy you some breathing room in your monthly finances. If you shorten your repayment period you will be paying off your loan quicker and you will therefore spend less money overall on interest. This will make your monthly payments higher, but you will save money in the long run. On the other hand, if you are having trouble making your payments every month, lengthening your repayment period will allow you to greatly reduce your monthly payments. Since you will be paying the loan off over a longer period, the principal will stretch out and easily cut your payment by hundreds per month. You should note that you will be paying more interest over the life of the loan, but this may be worth it if it can make your monthly budget work for you. The market rates have decreased.The refinance rate that you will be offered will be based in part on the current market rates. If the current rates are lower than they were when you initially financed your car, you may be offered a lower car loan refinance rate.You are in a bad relationship with your current lender.Sometimes we end up in bad relationships. Maybe you don’t like the customer service and have had a few too many bad interactions. Maybe they have hit you with fees and penalties that you do not find fair. Maybe they have been unresponsive and unhelpful. Whatever the reason is, refinancing your car loan can help you get out of a bad spot with your current lender.You want to add or remove a cosigner. If you want to add or remove a cosigner from your current loan, refinancing your loan is going to be your best option. What do I need to refinance my car loan?In order to refinance your loan you will need to have the following documents: Proof of employment or income (a paycheck stub or tax return)Proof of car insurance.A valid driver’s license.Proof of residence. This is required if your driver’s license and credit report address don’t match. A utility bill is usually sufficient for this.  Your car’s registration.Your vehicle’s information: model, make, year and vehicle identification number (VIN)Your current lender’s information and loan information, including the payoff amount.A photo of your car’s odometer Some lenders may require more information or paperwork, but these are the standard documents that most lenders will want. Is summer 2023 a good time to refinance my car loan?So is now a good time for car loan refinance? It really depends on your situation. The current market rates are not particularly low right now, but that might not matter for you. The rates might still be lower than when you originally financed, and if your credit score increased then you might be eligible for a much better interest rate.  If you are looking for some breathing room, refinancing to a longer repayment period can really help you out of a tight spot. The best thing you can do is to look at your finances and determine if you could benefit from car loan refinance.  That’s how you can know if car loan refinancing is right for you in summer 2023. Contact Auto Approve to find out how much money you could be saving!GET A QUOTE IN 60 SECONDS

Car safety is at the top of many people’s list when they decide to buy a new car, especially if you are looking for a family vehicle. Car accidents are unfortunately a part of our lives, with about 0.7% of accidents resulting in fatalities. In 2021 alone there were 42,939 deaths caused by car accidents. Because of this, we need to be careful when selecting a car so that we can minimize the chances of serious harm in the case of a car accident. So how exactly do they determine which cars are safest? And which cars are at the top of list when it comes to safety?Here are the safest cars in 2023 (and why they earned that title).What determines the safety of a car?There are two major organizations in the United States that rank the safety of cars: the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS). These organizations gather data and analyze vehicles to make the highways safer for all of us. Part of this analysis involves testing cars in crash scenarios to determine which cars are the safest and which are the least safe.While these organizations both test the safety of cars and use crash scenarios they have different ranking systems and operate independently of each other. This means that you should take both ratings into consideration when looking to buy a new car. The NHTSA uses a 5-Star Safety Ratings Program while the IHS uses a Top Safety Pick and Top Safety Pick+ as a ratings system.What are NHTSA safety ratings?The NHTSA uses a  5-star rating system to measure the safety of a vehicle. Five stars are awarded to the safest cars while one star is awarded to the least safe cars. Their ratings are strongly based on four crash test scenarios that they run. A Frontal Crash Test Scenario. This measures how safe a car is in a head to head collision. They assume that an average-sized male is in the driver seat and a small-sized female is in the passenger seat, both wearing seatbelts. The crash is between two vehicles with the same weight. After the crash they analyze the injuries to the head, neck, chest, and leg. Frontal crash ratings are only compared between vehicles from the same weight class, plus or minus 250 lbs.Side Barrier Crash Test Scenario. This measures how safe a car is if it gets hit from the side, as if there were a four-way intersection where a car did not stop and hit a car on the driver side. They assume that an average-sized male is in the driver seat and a small-sized female is in the back seat on the driver side, both wearing seatbelts. The test measures a 3,015 lb moving barrier that crashes at 38.5 mph into a vehicle that is not moving. After the crash they analyze the injuries to the head, abdomen, chest, and pelvis. Side crash ratings can be compared across all weight classes.Side Pole Crash Test Scenario: This measures how safe a car is if it were to slide off of the road and hit a telephone pole on the driver’s side. They assume there is a small sized female in the driver’s seat with a seat belt fastened. The test measures how a car responds when it hits a pole with a 25 cm diameter at 20 mph. Side pole crash tests can be compared across all weight classes and vehicle types. Rollover Resistance Test Scenario: This measures how a car responds if there is a sharp curve that you try to navigate but end up rolling the car off of the road. This measures the “static-stability factor” of an SUV, which is essentially how top heavy an SUV is.All of these tests are a critical component of a car’s safety rating, although other components are taken into account.  What Are the IIHS Safety Ratings?The IIHS runs different tests than the NHTSA that tend to measure the safety features of cars more than the construction of the car. Because of this they can be seen as complementary to the NHTSA tests (which is why you should consider both rankings). The IIHS uses the following test scenarios to determine a car's safety.Small Overlap Front Crash Scenario, Driver Side: This measures how safe a car is if it were to hit a barrier on the front left of the car. It assumes the car is traveling at 40 mph and measures the impact to a driver’s head, neck, chest, hip, thigh, lower leg, and foot.Small Overlap Front Crash Scenario, Passenger Side:  This measures how safe a car is if it were to hit a barrier on the front right of the car. It assumes the car is traveling at 40 mph and measures the impact to the head, neck, chest, hip, thigh, lower leg, and foot of both the driver and the passenger. Moderate Overlap Front Crash Scenario: This measures how safe a car is if there is a frontal crash between two cars. It assumes a car is traveling at 40 mph and there is an average sized adult in the driver’s seat and a child seated behind the driver. They evaluate the impact to both the drivers and the child.Side Crash Scenario: This side crash test is currently replacing an older test and measures how safe a car is when there is side impact. A 4,200 pound vehicle crashes into the driver’s side of a car at 37 mph and the impact to the driver and a driver side rear passenger are measured. They evaluate the head, neck, torso, and pelvis. The IIHS runs other test scenarios that involve a car's ability to avoid hitting a pedestrian. They also look at other components, such as headlights, LATCH (Lower Anchors and Tethers for Children) systems, and seat belt reminders. The IIHS gives each car a score for each test. These scores are broken down as Good, Acceptable, Marginal, and Poor. Scores are kept individual and a car is not awarded an overall safety score. What other safety features should you look for?There is a lot of safety technology out on the market today. And in general many of these technologies will work to keep you safer. A lot of it will come down to your budget and what you can afford. The NHTSA recommends looking for the following technology: Forward collision warning Lane-departure warningAutomatic emergency brakingRearview camera systemWhich cars are the safest in 2023?According to the IIHS, the following cars are the safest in 2023 and were named as the Top Safety+ Award winners. In order to be named Top Safety+ Award winner the vehicles needed to have Good ratings (the top raing) in all of the crash tests, have Acceptable or Good ratings for headlights, have an Advanced or Superior rating for both daytime and nighttime vehicle-to-pedestrian front crash prevention.Small Car: Acura IntegraMidsized Cars: Subaru Outback, Toyota Camry Large Luxury Car: Genesis G90Small SUVs: Honda CR-V, Honda HR-V, Lexus UX, Subaru Solterra Midsized SUVs: Hyundai Palisade, Kia Telluride, Nissan Pathfinder, Subaru Ascent, Toyota Highlander, Volkswagen ID.4Midsized Luxury SUVs: Acura MDX, Acura RDX, Infiniti QX60, Lexus NX and NX Plug-in Hybrid, Lexus RX, Tesla Model Y, Volvo XC90 and XC90 RechargeMinivans: Honda Odyssey, Toyota SiennaLarge Pickups: Rivian R1T, Toyota Tundra crew cab and extended cabAccording to the NHTSA, the following cars were awarded 5 star safety ratings. Audi Q7 Audi Q8 BMW X1 Chevrolet Colorado Chevrolet Malibu Ford Explorer Gas Genesis GV70 Honda Accord Sedan Honda CR-V Honda HR-V Honda Pilot Hyundai Santa Cruz Jeep Grand Cherokee Jeep Grand Cherokee PHEV Jeep Wagoneer Jeep Wrangler Unlimited PHEV Kia Niro Kia Sportage Kia Telluride Lexus GX 460 Lexus RX 350 Mazda CX-30 Mazda CX-50 Mazda3 Mini Countryman Mitsubishi Outlander Nissan Ariya  Nissan Armada Rivian R1S Subaru Solterra Toyota Prius Volkswagen Tiguan There is some overlap between the winners, such as Honda CR-V, Honda HR-V, and Lexus RX. But you can search for each vehicles ranking directly on the IIHS and NHTSA website. There is a lot of information out there when it comes to car safety, but these agencies are designed to help cut through the noise and give you honest feedback about the safety of a car. It’s a great idea to take all of these factors and ratings into consideration when you start your search to buy a new car.Those are the safest cars in 2023. Safety should always be a top priority when searching for a car, but your other needs and your budget will undoubtedly play a large part in your decision as well. Taking this information into account and balancing your needs and wants will help you to decide which car is practical, affordable, and safe for you and your family. If you already found your car but need to find a new car loan, Auto Approve can help! Contact us today to find out how refinancing your car loan can save you a lot of money.GET A QUOTE IN 60 SECONDS

Every parent wants to give their kid a good start in life. We want our kids to grow up to be healthy, smart, and financially sound. One step towards achieving that is helping our children to open their first bank account. So what’s a good age to open a bank account for your child? Here’s when, why and how you can open a bank account for your child.Why should I open a bank account for my child?Opening a bank account for your child has many benefits. First and foremost, it provides a place for your child to safely keep their money. Whether it’s chore money or money from holiday gifts, it’s good for kids to have a safe place to keep their money. A savings account will allow their money to safely earn interest as well. But a savings account will also teach your child about money management, which is perhaps the most important reason. Learning about how banks work, how interest rates work, and how interest accumulates are all important lessons that will help your child immensely in the future.What bank is best to open an account for a child?Most banks will allow you to open a bank account for your child. There are two account options you will have when selecting a bank account for your child, a custodial account and a savings account that is designed for children.A custodial account is an account that is owned and controlled by the parent, but when the child turns 18 they will be able to take it over. Custodial accounts give most of the control to the parents and any adult can contribute to the account.Savings accounts designed for kids are actually joint accounts that children can operate alongside their parents. These accounts are designed to teach kids about money management and will oftentimes come with educational materials and apps to help kids learn about money. When your child becomes 18, what happens to the account will vary depending on the bank.Both types of accounts are beneficial, so it will be up to you to decide which is better for you. Savings accounts that are designed for kids will often give your children more opportunities to learn, so this may be a preferable option for you. When deciding which bank to open a savings account with, here are a few things to consider.EligibilityYou will need to make sure that your child is eligible to open a savings account. Different banks have different age requirements for their kids programs, and some may require that an adult has an account there. Here are some sample eligibility requirements from various banks:Alliant Credit Union: Eligible for kids up to 12 years old; families must be members of Alliant.Bank of America: No age requirement; must be a jointly owned account.Capital One: Eligible for kids up to 18 years old; account must be owned jointly with a parent or legal guardian if under the age of 12.Wells Fargo: No age requirement; can be set up as custodial or joint ownership account. FeesBe sure to consider what fees may apply to your child’s savings account. Are there overdraft fees, maintenance fees, or a minimum balance that you need to maintain? Asking all of these questions can help you avoid a problem in the future. Interest ratesThe interest rates on regular savings accounts are not much these days, but if you are interested in teaching your kids about how savings grow it’s an important consideration. Looking around to compare rates can also teach your kids the importance of shopping around. LocationUnless you live in a big city you might be limited to the physical bank locations you can visit with your child. While you can certainly open a savings account online, it may be more fun and more impactful to visit a branch with your child and get the whole banking experience. Account controlsThe control that you have over your child’s account will vary a lot from bank to bank. Take the time to research how each bank will allow you to monitor your child’s money.  Education toolsMany banks offer additional education tools to help teach your kids about financial literacy. Bank of America and Wells Fargo both have sections on their website devoted to teaching kids about money management, while Alliant Credit Union has a kid friendly app that aims to teach kids about banking. What’s the best age to open a bank account for my child? There is no perfect age to open a bank account for your child, as it depends on your circumstances. Opening a bank account for your child when they are too young to participate in the banking process merely means that you will manage the account entirely and can slowly introduce them to their account as they get older and comprehend more. But you may also choose to wait until your child is older so that they can help to open the account and play a more active role in their money management. There is no right or wrong answer, but be sure to do your research so you can determine where and when your child is eligible to open a bank account.What do I need to open a bank account for my child? Opening a bank account for your child is similar to opening a bank account for yourself. As the legal guardian you will need to provide most of the documentation. Your child can use their social security card or birth certificate as their primary identification. The specific documentation requirements will vary from bank to bank and from account type to account type, so be sure to contact your bank to determine exactly what you will need.What else can I do to teach my child about finances? Kids are constantly absorbing what is around them, even when you may not realize it. This means that your behavior towards money and spending habits will be the biggest influence on their financial well-being in the future. Having open and honest conversations about money, budgeting, and working will all help your child to have a better understanding about money matters. Show them how to budget.Teaching your kids about incoming and outgoing money is imperative. You can show them your budget and explain how to track income and expenses, accounting for all of the various things in life that cost money. From mortgage and rent payments to utilities to car payments, everything adds up and comes directly out of your income. Helping them to set up their own budget may further help them understand this concept.Show them the value of hard work.It seems simple, but kids need to understand that money is the result of work. Whether that work is a job that they go to, chores that they perform, or investments that they have made, work is the way that they can increase their income and have more money to spend on the fun stuff. Show them how to cut their expenses.As a child they don’t really have expenses, but showing them how you work to cut costs will help them grasp this concept. Coupon clipping and buying generic brands can cut your grocery bills, using cash back and rebates can help save money on large purchases, and refinancing larger loans to lower interest rates can cut your monthly payments.  Show them the power of compound interest.Savings accounts can show kids the power of compound interest, which shows them how their money can work for them. As they earn interest that is added to their savings, they will earn interest on that money as well and their money will grow independently. You can further explain this to them with other examples. Show them how to budget for their goals.What does your child really want more than anything? Is it a toy or game, or is it a larger expense such as a car? Whatever it is, teaching them to use their goals as motivators for saving will help them learn the value of work and the satisfaction of meeting a goal. Starting small with saving chore money to buy a toy will grow to saving money to go to college, and all of this will help them to become a financially responsible adult.That’s when, why, and how you can open a bank account for your child.Teaching kids about finances is an important part of parenting, and opening a bank account is a great way to start this education. Kids absorb everything, which means that your behavior and budgeting will have an incredible impact on them. Take a fresh look at your bank account, budget, and savings practices to ensure that you are the best role model for your kid. If you are overpaying on your car payment every month, contact Auto Approve to find out more about car loan refinancing!GET A QUOTE IN 60 SECONDS

When you have your first kid a lot of things change–including what you need to look for in a new car. The sporty coupe of your younger days is no longer a practical option, so you may find yourself scouring Kelley Blue Book reviews to find the next set of wheels for your family. So what are the must-haves when it comes to getting a family car?Here are 5 things you should look for in a family car.#1: A High Safety Rating (and Added Safety Features)Safety is the most important thing when it comes to picking out a family car. There are a number of things that contribute to how safe a car is. The Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA) evaluate new cars every year to determine how well they protect the occupants during a crash. The IIHS uses Top Safety Pick and Top Safety Pick+ as a ratings system and the NHTSA uses a 5-Star Safety Ratings Program. But they both measure similar aspects of safety, performing the following tests to determine how safe a vehicle is:A Frontal Crash Test ScenarioSide Barrier Crash Test ScenarioSide Pole Crash Test ScenarioRollover Resistance Test Scenario All of these tests are performed to determine the safety of a car and these will inform the rating that each institution awards them.  High safety ratings will give you peace of mind that the car you are selecting will perform well if there is an accident. But there are some additional things you should look for in addition to a high safety rating to ensure your car is safe enough for the whole family.The Size In general, bigger cars are safer because there is more to protect you. A minivan will provide much more physical protection for you than a small coupe will. Many safety tests compare cars of similar sizes so that you are comparing apples to apples, but larger vehicles are in general a safer option. According to the IIHS:Minivans have the lowest collision fatality rate with a driver death rate of 25 per million.Pick-up trucks have a collision fatality rate of 52 driver deaths per million. Cars have a driver death rate of 56 per million.Four door mini cars have an average driver death rate of 82 deaths per million.The Body BuildNew cars today are built to be safer than older cars. They are designed to brace for accidents and crumble in ways that will protect the occupants inside. A newer car that is designed for family use will be safer than an older model.Airbag SafetyAirbags are incredibly important when it comes to vehicle safety. In fact, studies have shown that front airbags reduce driver fatalities by 29%. Recent additions of side airbags to newer cars have saved even more lives, with the IIHS reporting that these additional airbags have reduced driver death by 37% in cars and a whopping 52% in SUVs. Considering the amount and placement of airbags in your new family car could literally save your life.Tire Pressure Monitoring SystemsWhile this may seem like an unnecessary feature to older generations accustomed to checking tire pressure manually, these monitoring systems are a huge safety feature.These became the law in 2007 and the NHTSA estimates that it saves about 80 lives and prevents over 10,000 accidents every year. While this isn’t a concern in newer cars, be sure that any used car you are considering has this feature.Additional Safety Features There are a number of additional safety features that manufacturers have been rolling out in recent years. Some of them are not especially proven, but some are definitely worth any added costs. The NHTSA recommends the following when looking for a new car:Forward Collision WarningLane Departure WarningAutomatic Emergency BrakingRearview Video System#2: Enough SeatingSafety is the top concern when looking for a family car, but seating is also a huge consideration that can’t be ignored. Of course you will need enough seats for your immediate family, but you should also think about the future. Do you need additional room for car seats and booster seats? Do you anticipate friends tagging along on trips? Is there a possibility of sports carpooling on the horizon? Will you need a space or a seat for the family pet? When you figure out how many seats you will need, you can then think about the specific type of vehicle–car, SUV, minivan, or truck–that will work best for you.#3: Storage for EverythingA family car needs to be practical for your everyday life. This means grocery trips, sports gear, luggage–the list goes on and on. So it’s important that your family car has excellent storage. A large trunk and seats that fold flat will all help you to store as much as possible in your car when the time comes.#4: Backseat ExtrasLittle extras can make your car trips a lot easier. Cupholders give your kids a place to keep their drink that is easy to access, USB ports allow them to charge their phones and devices independently, and back seat pockets give them a place to get organized. Some luxury cars even have tray tables and adjustable seats, but you don’t need to go too crazy. A few backseat comforts can make your trip more enjoyable for you and your kids.#5: Keyless Entry and Power DoorsThis may seem like a small thing, especially if you do not yet have kids. But the second you bring your first child home you will realize that you do not have enough arms for everything. Early on you will be lugging the car seat and diaper bag, and then you will move on to toys and backpacks and sports equipment. And all of this can be miserable if you have to fumble for your keys every time you go to load up. But keyless entry will make your life a lot easier. It is more and more standard on new cars nowadays, but keep your eye out for it just in case. Power doors can similarly make your life easier. Closing your backseat doors with the push of a button will make all the difference some days.Those are five things you should look for when buying a family car.Buying a family car is a big deal. You spend a lot of time in the car, especially when you have kids that you are constantly driving. So it’s important to pick a car that you like and enjoy AND that is safe for the whole family. Already have your dream family car? Consider refinancing your car loan with Auto Approve!GET A QUOTE IN 60 SECONDS

 The economy is in a rough spot right now, which means many of us are behind on payments. Mortgage, rent, insurance, groceries, electric bills–it seems like we can never get a break or catch up. Car loan debt is at an all time high right now due to high car prices and high car loan interest rates. In fact 2 in every 13 Americans is paying over $1000 on their monthly car payment. It’s not hard to imagine these numbers getting the best of us and resulting in a missed car payment. But what exactly happens when we actually can’t afford to make our monthly car payment?Here’s what you should do if you can’t make your car payment.What happens if you miss a car payment? The exact consequences of missing a car payment will vary depending on your contract and your lender. But missing a car payment will definitely affect your credit score, which will have lasting implications for your financial future. A bad credit score can mean the following:You will have a harder time getting approved for loans and will have fewer options.You will have higher interest rates.You will have higher insurance premiums.You may have to pay a deposit for utilities.You may have a tougher time renting an apartment. A hit to your credit score can take years to recover from and could affect several areas of your life. It is unlikely that your car will be repossessed if you miss one car payment, but some companies will repossess your car if you miss two payments. Most companies will repossess your car by the third missed payment.  If your car is repossessed you may think that is the end of it, but the lender may actually come after you with legal action to incur any fees that you haven't paid. So not only will you be out of a car (and without the down payment and payments that you have already made), but you may owe the lender even more money, and your credit score will be seriously compromised. A repossession will show up on your credit report as well, which will be a major red flag for future lenders. All of this is to say: you do not want to miss a car loan payment if you can help it. The repercussions are long lasting and will take a long time to recover from. If you are struggling to make one payment, chances are you will struggle again. It’s better to be proactive and address your financial situation before you miss a payment and certainly before you miss several payments.How many days late can you be on a car payment? This varies from loan to loan but most lenders will give you a 10 or 15 day grace period if you miss a payment. As long as you pay your bill within a few days of the due date there will not be consequences. Some lenders will give a greater grace period on your first payment with a 60-day no payment option. This means that you will have 60 days after signing to make your first payment. This can be very helpful if you made a large down payment and could use a month to catch up. Your contract will list if you are responsible for any late fees. The amount will vary from lender to lender but will typically be between 2-5% of your monthly payment. Can you defer a car payment? How many times can you defer a car payment?This is another thing that will vary from lender to lender. Some lenders will allow you to defer once, while others may allow you to defer payments three or four times. The timespan of these deferrals may be per year or per the life of the car loan. Read your contract carefully to determine what the implications are.Can I make a partial payment on a car loan?You may think that if you make a partial payment it will help to mitigate the damage. While making a partial payment will apply towards your loan and reduce the amount you owe, if you do not make the payment in full it will still be marked as late. This means that it will still negatively impact your credit score and may put you in jeopardy of losing your car depending on how your car loan contract is worded.Should you defer a car payment? Deferring a car payment is a good option if you are starting to struggle financially but feel that a small break can help you catch up. There are several advantages to deferring a car payment:You can avoid late fees.You can avoid the risk of repossession.You can use the extra time to decide what to do to fix your financial situation. But deferring a car payment comes with some disadvantages as well. After all you will still be responsible for making the payment and for the interest accrued during that time. If money is truly tight, deferring the payment may just mean deferring the problem.What options do you have if you can't make your car payment? Talk to your lender.A great first step to take is to contact your lender directly. They may suggest deferment or they may be able to enroll you in a program to help you make your payments. If you have a good history of on time payments they may be more willing to work with you. Remember, your lender doesn’t want to repossess your car–that’s a lot of work on their end to recoup your payment. They ultimately want you to pay them, so they may be more willing to help you out than you may anticipate. When you talk to your lender you can also ask them if it's possible to change your payment date. If you get paid at the beginning of the month and your loan is due at the end of the month it may be harder for you to make your payments on time. But if your lender allows you to change your payment date it may set you up for more success. Refinance your loan.If your lender is not willing to work with you or you do not have a good relationship with them, you may want to refinance your car loan with a new lender. There are a lot of benefits to refinancing your car. You can not only secure a better car loan APR, but you can change your repayment terms which can give you a lot of extra breathing room every month. Lengthening your repayment period means that you will pay off your loan over a longer period of time. You will end up paying more money in the long run because you will pay interest for longer, but this will mean much lower payments every month. If you are in danger of missing payments, this might be your best option. Companies that specialize in auto refinancing can help you secure a refinance loan that will work for you and help you navigate the refinancing process. Get rid of your car.If you are struggling, ask yourself “do I really need a car?” Let’s face it: cars are expensive. Not only do you have car payments, but you have to pay for insurance, gas, maintenance, parking, tolls, registration, and more. If you live in an area that has public transportation or you have someone in your life who can help you get around, it might make more sense to get rid of your car altogether. This will alleviate a lot of stress in your life. Selling your car will also give you a little cash injection depending on how far along you are in your loan. Trade in your car.If you still need a car to get around, selling your car is probably not a great option. But you can trade your car in at the dealership to get a car that has more affordable payments. If you have the time and inclination you can sell your car privately and use the income to secure a less expensive car. You will get more money if you sell your car privately, typically making 15%-25% more than if you were to trade it in. That’s what you can do if you are having trouble making your car payment. The best way to ensure that you can always make your car payments is to select a car that you know you can afford. Determining a budget ahead of time and getting preapproved for a car loan will help you to stay within a healthy range of car prices. Try to avoid the unnecessary add ons and be sure to make a healthy down payment to further secure an affordable monthly payment. If your monthly payment is too much, contact Auto Approve today to see how much money we can save you!GET A QUOTE IN 60 SECONDS