Credit Scores and Car Loans

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

Thinking about purchasing a crossover, but not totally sure what the difference is between a crossover and an SUV? Here’s what you need to know about what makes a crossover a crossover.While crossovers can include a relatively wide range of vehicles, there are some characteristics that tend to be common across crossovers, like a unibody construction (vs. the body-on-frame construction typical of SUVs). Read On To Learn Everything You Need To Know About CrossoversIn this article, we’ll cover:The definition of a crossover vehicleExamples of crossover vehiclesCommon characteristics of crossoversFAQs about crossoversWhat Is A Crossover Vehicle?A crossover vehicle is a vehicle that shares characteristics with both passenger cars and SUVs. It is called a crossover because it is a combination, or crossover, of the two usually distinct kinds of vehicles. You might also hear crossovers referred to as “crossover SUVs” or as “CUVs.”Examples of Popular CUVsSome of the most popular crossover SUVs include the Honda CR-V, Mazda CX-5. Toyota RAV4, and various models of Subaru, like the Outback, Forester, and Crosstrek. Generally, people like these vehicles for their practicality, versatility, reliability, safety, and gas mileage.Lower Your Monthly Vehicle Payment with Auto ApproveAlready got a vehicle you love? If you want to lower your monthly auto loan payment, we can help. Refinancing is an easy way to pay less monthly, over the life of your loan, or both.Get a free quote to see how much you could save.What Makes A Crossover A Crossover?Here are some of the most common characteristics you see among crossover SUVs.SUV Styling & High Ground ClearanceCUVs are typically styled to look more like SUVs than standard compact cars. At first glance, they look just like SUVs, and are sometimes even classed as “small” or “compact” SUVs. They’ll typically have higher ground clearance than a car, but not quite as much as a real SUV would have. Higher ground clearance can mean a better vantage point to see other drivers and a more capability on uneven terrain.Car-Like Handling & Unibody ConstructionSUVs are big, heavy cars. They can be difficult to park and don’t handle like a car. They’re also typically built with what’s called body-on-frame construction. Body-on-frame construction means that the vehicle has a separate chassis or frame that the body is mounted on, while with unibody construction the frame and body are a single unit. The reason body-on-frame construction is used for SUVs is because it gives better towing or hauling capacity and handles uneven terrain and off-roading better. Body-on-frame vehicles also tend to be a bit more durable and can take more wear and tear from activities like off-roading and hauling. Crossovers use unibody construction. Unibody construction makes crossovers lighter, meaning they handle more like a car, and this build can be safer for passengers in an accident – though the vehicle itself may require more work to recover. The sacrifice in weight means that crossovers don’t have as much capacity for towing and hauling, and the frame build difference means that, while you could probably take a CUV on a dirt road in a pinch, taking it off-roading would be a bad choice. It looks like an SUV and has room like an SUV, but it’s not built for the same kind of work.Fuel EfficiencySince they’re lighter, crossover SUVs are also usually much more fuel efficient than standard SUVs. Of course, these days you can get hybrid and electric CUVs and SUVs – but even so, the heavier the vehicle, the more energy it’ll take to run smoothly.VersatilityUltimately, the thing that makes crossovers so appealing to so many people is their unique combination of traits. You get more cargo space or trunk room, like an SUV, but the handling and fuel efficiency of a car. You get the safety of a car, with higher clearance, and can opt for a CUV with four-wheel drive or all-wheel drive to better handle rougher road conditions.Overall, for many people, a crossover SUV offers the best of both worlds. But whether it makes sense for your needs? That’s up to you.Crossover FAQStill have some lingering questions? Here are answers to some of the most commonly asked questions about crossover vehicles.What is the difference between a crossover and an SUV?Here’s the short answer. A crossover has some of the features of a car and some of the features of an SUV. Crossovers are sometimes considered a kind of SUV because they have some of the styling, room, and ground clearance found in SUVs, but their unibody construction and resulting lighter weight and easier handling make them unique.Should I get a crossover or an SUV?Deciding whether to get a CUV or an SUV is a personal choice! Those not intending to do a lot of off-roading or hauling tend to prefer crossovers for their balance of space, safety features, easy handling and fuel efficiency. However, if you live somewhere with challenging weather conditions, if you live in the country and regularly navigate rough terrain, or if you want to use the vehicle to carry or tow heavy loads, an SUV may be a better choice.Which is safest: a car, SUV, or crossover?Most popular compact cars, SUVs, and crossover SUVs are essentially safe. Crossovers have a lot to commend them when it comes to safety, because of their specific blend of features. However, the relative safety of different kinds of vehicles really depends on the conditions you’re most likely to face.In an accident, generally speaking, vehicles with unibody construction are considered statistically safer and less likely to roll than body-on-frame vehicles. However, in an accident between a car and a heavier vehicle, those in the lighter vehicle are in more danger.And, depending on where you live, vehicle collisions may be less of a risk than bad weather or terrain. Black ice, heavy storms and heat waves can all be dangerous, and different factors – like the kinds of tires on your vehicle, whether or not you have 4WD or AWD, your emergency preparedness, and the vehicle’s make and model – can all affect your relative safety.All this means that, ultimately, what’s safest will depend on your lifestyle and location. If you’re thinking about buying a new vehicle, the best things you can do are take time to understand the safety features available to you and research safety statistics on the specific make and model.Your Crossover Questions, AnsweredHopefully, this guide has answered all your questions about crossover vehicles and you’re now well-equipped to decide whether a crossover is right for your next vehicle purchase, lease, or road trip rental car.Save Money on Your Monthly Auto Loan Payment With Auto ApproveLooking to lower your monthly vehicle payments? Auto Approve can help you find the best deal available to you in just a few minutes. Refinance your vehicle through Auto Approve and you’ll get a great deal with no markups – and we’ll do the paperwork for you. Auto Approve even handles the DMV!Getting a quote is quick, free, and doesn’t require a commitment or hard credit check.Get your free quote now.

Do you need to rent a car on vacation?It’s a complicated question, and there’s no one size fits all answer. However, there are a few important details you can and should take into account if you’re on the fence about renting a car on your next holiday.In this short guide to car rentals for vacation, we’ll look at:Your destinationYour travel planYour travel companionsYour vacation habitsAnd your budgetWith these things considered, you should have a clearer picture of whether or not renting a car is right for your getaway. And hey, remember – this is a good problem to have, it means you’re going on vacation!5 Things That Determine Whether You Need A Car On VacationWhether or not you want to drive on holiday is a personal decision. Ultimately, this choice can affect the kind of trip you have, so choose based on the vacation you want. 1. Where You’re GoingYour destination is a huge factor in deciding whether or not you need a car at all. For example, consider the following:Is it somewhere you’ll need to drive to get around? Is it somewhere with robust public transpo and limited parking? Do they drive on the same side of the road? What are your plans for meals – will you need to buy groceries?If you’re going to an all-inclusive resort, or a major city where parking will be expensive and difficult and public transportation is the standard way of getting around, a car might only slow you down. If you’re renting a ranch in Montana or roadtripping through mountains, you’re almost certainly going to want not just a vehicle, but one that can handle inclement weather and rough terrain.And if you’re going somewhere like Ireland or England where they drive on the other side of the road (or if you’re coming to the U.S. or Canada from, for example, the U.K., India, or Japan), even if having your own transportation might be convenient, you might want to look at buses and trains to lower stress and keep you safe.2. How You’re Getting ThereThere are different considerations for taking a road trip vs. flying somewhere.If you’re taking a road trip, you might consider taking your own car rather than getting a rental. This is certainly cheaper, and if you’re driving somewhere close to home, taking your own car is a perfectly good option. The biggest reasons to rent a vehicle for a road trip are:If your car is old or has limitations that’ll make it uncomfortable or more likely to break downIf you know you’ll need to handle terrain or weather your vehicle isn’t well-suited forIf you’re going somewhere far enough from service stations that a breakdown could mean a major trip interruptionIf you’re driving from Boston to Southern Maine, renting a car feels a little silly – you’re close to home, you’re not changing terrain, and you’ll be surrounded by auto shops the whole time. But if you’re driving from Boston to the Grand Canyon, the idea of getting a broken down car back home becomes a much bigger deal. A rental might be more expensive, but if you’re renting with a national company, it may be easier to simply replace a vehicle in the case of an emergency than wait for one to be fixed when you’re several days’ drive from your home and your destination. Of course, that’ll depend on your breakdown coverage and your rental agreement, so read the fine print on everything carefully as you weigh your options.On the flip side, if you’re flying to your destinations – say you’re off to see the rainforests of Costa Rica – renting a car will likely be your only choice, if all the other factors align and you decide a car is, in fact, necessary.3. Who You’re Going WithBig family? Solo travel? Your adventuring party makes a big difference in your transportation needs. If you’re backpacking on a budget alone across Europe, you might be willing to put up with a lot of minor inconveniences to save money. A car might be more of a hindrance than a help – or at least eat up your cash.On the other hand, if you’re taking your parents and your young kids to a beach house, you’re definitely going to need a vehicle.And if you’re traveling with a group of several adults, you might be willing to go either way on a vehicle rental vs, taking transportation. In that case, the best thing to do is dive into the details – will several train tickets be as or more expensive than a vehicle rental? Does the train have a scenic view, or would a car be a better way to see and explore the area?Want a little money back in your pocket for your next getaway?Refinancing your vehicle loan is a great way to save. Most people are eligible for a better rate and to pay less monthly. When you refinance with Auto Approve, we’ll help you find the best deal available to you, then do the paperwork for you!Get a free quote to see how much you could save.4. What You Like To Do On VacationAnother thing to think about is the kind of vacationer you are. Some people like to stay close to home, or stick to eating at restaurants and strolling around urban sites. If that’s you, cabs and walking might be more than sufficient for your needs. But for the outdoorsy, those who love beach days, national parks, and driving into the woods, a car can be a must-have. When you picture yourself on vacation, what are you doing? If you prefer to split the difference, you can always rent a car just for a day or two rather than for the whole time, to save money.5. Your BudgetMaybe one of the most important factors in all of this is what works for your wallet. Compare costs for different options and decide what’s worth it to you. If money is tight, choosing what will cost the least is probably going to be the best plan of action – just make sure you don’t choose something that could have the unintended consequence of costing you more because your research failed you. If the bus is cheaper, but it only comes every other day and you’ll need to rent a hotel room for a night while you wait, is it still cheaper? How much does a cab actually cost? How much is parking and gas where you’re going? Be thorough, especially if cost is a concern.And on the other hand, if you have more wiggle room in your budget, the right transportation for the right destination can make a trip more pleasant and less stressful. So, Should You Rent A Car For Your Next Vacation?That’ll depend on all these factors. A car is not always the right choice for every person and destination. Hopefully, with all of the above in consideration, you’ll be able to figure out the right steps for you and your next trip!Another good next step to take?Finding out how much you could save by refinancing your vehicle with Auto Approve! Most people are paying more than they need to be on their monthly car payment, thanks to dealer markups. If you got your loan through dealership financing, if rates have gone down, or if your credit has gone up, refinancing may be able to save you money both monthly and in the long run with a lower interest rate.Getting a quote only takes a few minutes, no commitment and no hard credit check required.Get your free quote now.