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There are a number of reasons why you might want to get out of your car lease early. Maybe you just lost your job, and the payments are too much to keep up on. Maybe the car isn’t as great as you hoped it would be, and it’s just not fitting your needs anymore. Or maybe, you want to be done with leasing and simply own the car outright. Whatever the reason, you have decided that you need to make a move and get out of your lease as soon as possible. So how do you do it?If you are wondering how to get out of a car lease early, these are the three main options: transfer the lease, return the car, or buy the car.Transfer the LeaseA very popular option to get out of a lease early is to transfer your lease to another person. Websites such as leasetrader.com and swapalease.com can help match you with someone looking to take over a lease. It is important to look at your lease agreement however, as not all leases permit a third party transfer. Furthermore, you must ensure that it is legal to do so in your state. The new lessee must also meet the lender’s requirements. If you are able to transfer the lease, you will most likely be held responsible if the third party stops making payments. You will also be required to pay any transfer fees, which can range from $500 to several thousands of dollars. It is common to offer incentives for people to take over your lease as well. An extra $500 to anyone willing to take over your lease might convince someone who is on the fence that taking over your lease is a good move. All of these costs add up for you however, so be sure to compare the costs between a lease transfer, early termination, and lease buyout.Return the CarThe simplest way to get out of a lease early is to terminate the lease agreement and return the car. This can also be the most costly option. When you terminate a lease early, you may be responsible for all or some of the following:Early Lease Termination FeeEarly lease termination fees vary widely from lease to lease. They are often based on a sliding scale, making it more burdensome to pay off the earlier you are in your lease. For example if you terminate your lease in the first year, you may be required to make three additional monthly payments, whereas if you terminate your lease in the second year you may only be required to make two additional payments. Review your lease agreement thoroughly to determine your responsibility.Remaining Payments on your VehicleYou may be required to pay all or some of the remaining payments on your vehicle. This is potentially the most expensive part of exiting your lease early. If you decide to terminate your lease with 18 months left on your contract and your monthly payments are $300, you may be on the hook for $5,400 in addition to the other fees associated with termination. Any Costs Related to ResaleThe lease agreement will often require you to pay a disposition fee, which covers any costs associated with reselling the car. This could include getting the car thoroughly washed and detailed, fixing any cosmetic dings, and performing any necessary maintenance. This can range from a few hundred to a few thousand dollars depending on the condition of your car. Taxes Associated with LeasingIf there are any additional taxes associated with the lease, you will be required to pay those. This will vary greatly state to state.Negative Equity Between Your Lease and the Current Market ValueNegative equity is when you owe more than something is worth. This is also referred to as being “upside-down” or “underwater”. When it comes to a lease, it means that your monthly payments are not paying down the balance of the lease faster than the car is depreciating. Your lease agreement might require you to pay some or all of this difference in the car’s value.Storage and Transportation of Your VehicleAny costs related to the physical removal and storage of your vehicle will be your responsibility to pay.As you can see, all of the lease termination fees often make this the most expensive and least practical way to get out of a lease early, but it is definitely the most straightforward. Buy the CarSometimes the most financially beneficial way to end a lease early is to buy the car from the lender. If you have the capital to do this outright, you can simply buy the car and pay for any associated fees. If you do not have that amount of cash on hand, you can opt for a car lease buyout loan. Here is how to buy your car from your lease agreement.Determining Your Car’s ValueEvery car lease has a residual value that is listed in the loan agreement. The residual value of a car is based on your car’s expected depreciation over the life of your loan and is predetermined by the leasing company. It is usually non-negotiable. This is the number that you are bound to should you choose to buy your car.It is important to also look at your car’s market value. This is based on the demand for your car, and will give you an idea of how much you can get if you resell the car. It is important to know what the market value is of your car to determine if it makes sense to purchase it. If the residual value of your car is $13,000, but the market value is $11,000, it would mean that you are paying $2,000 more than what your car is worth. Consider these values and determine if a car lease buyout makes sense for you. Maybe you want to keep the car for yourself and you are comfortable with paying for the residual value. Or maybe you want to resell the car, and you will still make money on the transaction based on the market value of the car. Other Considerations for Buying Out Your LeaseBuying your car from your lender can release you from fees that you might otherwise have to pay. Leases often include charges or penalties for the following:Excessive Mileage. Most leases have yearly mileage limits, and if you exceed that mileage amount, you can be paying huge penalties. These penalties can range from $.10 a mile to $.30 a mile, which can add up to several thousands of dollars if you drive a lot. Wear and Tear. When your car is turned in after your lease is over, it is subject to inspection. Dealers will charge you for any external dents, stains to the interior, and anything else they think will hurt resale value. These fees can vary greatly depending on the condition of your car.Disposition Fees. Dealers will usually charge you a disposition fee, which covers all costs associated with reselling your car. Think of all of these fees as money that can be put towards buying your car from your lease. If the fees add up to $3,000, it might make sense to take that $3,000 and use it to invest in the purchase. It is always a good idea to call your lender directly and find out exactly how much it will cost you to buy your car from your lease. Obtaining a Lease Buyout LoanIf you’ve done the math and determined that buying out your lease is the best way to terminate your lease early, you may need to obtain a lease buyout loan. Not all lenders offer this type of loan, but at AutoApprove we work closely with lenders that provide these loans and will work tirelessly to find you the best rate possible. To get a lease buyout loan, you will need to take the following steps:Call your existing lease company. First, find out how much it will cost to buy your car. Tell them you are looking to buy out your lease and see if they provide that service.Shop around for rates. At AutoApprove we can jump start this process for you and help you start comparing rates.Call your existing lease company, again. Give them a chance to beat any competing rates that you may have found.Sign the papers and notify your insurance company. Make sure all of the necessary papers are signed, and tell your insurance company about the new lender. Since you will no longer have a lease, you may be able to reduce your coverage and your monthly payments, as you will no longer be required to have high liability coverage.Keep it or sell it. Now that it’s yours, you can decide if it’s worth keeping it, or selling it and keeping the profit.It is not always easy to get out of a lease early, but there are options available to do so.The best option will depend largely on your financial situation, but it rarely makes sense to terminate the lease outright. Finding a third party lessee or securing a buyout loan will often be the most beneficial options. If you are interested in obtaining a car lease buyout loan, be sure to contact AutoApprove today to get more information.GET A QUOTE IN 60 SECONDS

Leasing a car is a very popular option for many these days. But what happens when you love your car, and you just can’t bear to say goodbye?When your car lease comes to an end, you typically have three options to choose from: lease trade in, lease turn in, and lease buyout. Here, we'll discuss your three options and help you decide if a car lease buyout is the right move for you.What is a car lease buyout and does it make sense for you?In short, a car lease buyout lets you buy your existing car from your lender.When your lease term comes to an end, you have three main options to consider. About three months before your lease end date, your lender should contact you to review your courses of action.Understanding Your OptionsLease Trade InA lease trade in is when you trade your old car in for a new car lease. In this case, you should determine your car’s value and compare it with the lease-end residual value that is listed in your lease contract. If the trade in value is higher (which is rare), you can use the difference to put a down payment on a new vehicle.In most cases, the residual value will be higher and it will make more sense to return the car and start a new lease.Lease Turn InA lease turn in is exactly that; you return your car to the dealer as is. You will have to look at your contract carefully and determine if you are responsible for any fees. An inspection will be performed when you trade in your car and you will be responsible for excessive wear and tear, any dents and dings on the exterior of the car, and any stains or tears on the car’s interior. Excessive mileage fees may also apply, which can add up fast.Lease BuyoutA lease buyout lets you buy your car directly from your lender. If the first two options are less than ideal, a lease buyout might be the right option for you. In most cases, you can buy your car lease at any point during your lease period. If you want to buy out your loan early, you will need to discuss this with your lender as it will affect the residual value of the car. It is often not financially beneficial to buy a lease out early. It is much more common to wait until the end of the lease period to broach the subject of a lease buyout.  How a Buyout WorksA car lease buyout is different than buying a new car. You already have knowledge of your car’s condition so you should have fewer concerns over the investment. The buyout loan amount will also be significantly less than buying a new car. Let’s look at what you should consider when deciding if a lease buyout is right for you.Valuing Your CarFirst and foremost, you should determine the value of your car. There are two main factors that you should consider:Residual Value. Your car’s residual value is listed in your existing loan contract. The residual value of a car is based on your car’s expected depreciation over the life of your loan and is predetermined by the leasing company. This number is usually non-negotiable.Market Value. The demand for your car will greatly affect the market value of your car. If it is a popular make and model, it will have a higher market value. Use websites such as Cars.com, Edmunds.com. Or Kelly Blue Book to determine the market value of your car.When you are buying out your lease, you are bound to the residual value of the car. It is important to know what the market value is of your car to determine if it makes sense to purchase it. If the residual value of your car is $16,000, but the market value is $13,000, it would mean that you are paying $3,000 more than what your car is actually worth. There is no rule on when exactly it is worthwhile to purchase your car, but if the residual value is within a few hundred dollars of the market value, it is probably a fair deal.Additional Buyout ConsiderationsIf you are happy with the residual value of your car, there are a few more factors to take into consideration.Excessive mileage. Have you exceeded the mileage amount allotted in your lease agreement? If so, you will be subject to per-mile penalty fees that can vary from $.10 to $.30 per mile. If you were consistently driving several thousand miles per year over your limit, that can add up to several thousand dollars. If you choose to buy your vehicle, you will not have to pay these fees, so this money can instead be put towards your buyout. Your car’s condition. Your car is subject to inspection when your lease period is up. You will be charged a fee if there is excessive damage, such as exterior dents and dings, interior tears and stains, or mechanical issues that the dealership considers beyond normal wear and tear. Disposition Fee. The disposition fee covers all costs associated with reselling your car, and can be a few hundred dollars. This pays for the dealership to clean and detail the car, and make any necessary repairs before reselling.Cost of maintenance. If you want to keep your car, it is important to do additional research to determine what your cost of maintenance will be in the next several years. If there are several expensive maintenance costs that will pop up, you will need to compare this cost with the savings from the other fees.How to Buyout Your LeaseYou’ve run the numbers and you think that buying out your lease makes the most sense and is your best option. What next?Call your existing leasing company. Get a comprehensive list of all costs associated with the buyout. Make sure this number includes sales tax, which can be a significant amount.Shop around for rates. Go online and look around at different rates. Not all lenders offer buyout loans, so you will have less options than when you originally financed your loan. It is also important to note that lease buyout loans are used car loans, which tend to have higher interest rates than new car loans. At Auto Approve, we work with lenders that do offer lease buyout loans, and can help you get the best rate available.Your rates will be based on prevailing interest rates in the industry as well as on your personal finances, just as your initial loan. Make sure you have all necessary documents for your loan application: Photo IDYour Vehicle’s InformationProof of Income and Financial HistoryProof of ResidenceProof of InsuranceHaving all necessary documents ready to go will help to streamline this process. Be sure to apply to all lenders within a fourteen day period. The credit bureaus allow all credit inquiries in a fourteen day period to count as one credit hit, so it will not adversely affect your credit score more than necessary.When the lenders respond with their offers, compare the rates and terms. At AutoApprove, we can help you shop around to compare rates and terms to find the best option for your buyout loan. Call Your Insurance CompanyYou will need to notify your insurance company of your new lender. This is also a good chance for you to review your insurance needs. On a leased vehicle, you are typically required to have high levels of liability coverage. You may decide that you do not need such a high level of coverage based on where you live or how much you drive, and you can opt for lower payments by reducing this coverage. Make Sure All of Your Paperwork Is In OrderTalk to your lender and be sure to visit your state’s motor vehicle department to transfer the title and make sure all of your paperwork is in order. Your lender should be able to guide you specifically through what steps you need to take. And when you work with Auto Approve, we handle the DMV paperwork for you!Ready to buy out your lease? Auto Approve can helpIf you have considered all of your end of lease options and determined a lease buyout is the right option for you, we're here to help you with the next steps so you can keep your car, hassle-free.At Auto Approve, we never mark up rates on car buyout loans or vehicle refinancing, so you know you're always getting your best possible rate. We pass all of the savings right on to you. We know car financing can be complicated and stressful, but we're here to streamline the process and save you as much money as possible.Check out our auto lease purchase options and get started today!GET A QUOTE IN 60 SECONDS

So, you have a car, you love it, but the interest rate... isn't so hot. You're probably wondering whether refinancing could help and, if so, when you can refinance.First, let's talk about vehicle refinancing.When you refinance a car, you are paying off your existing loan with a new loan that ideally has better terms. Just as you are able to obtain a vehicle loan whenever you would like, you are also able to refinance a vehicle loan whenever you would like. But there are many factors to consider when trying to determine the best time to refinance a car and whether or not it makes sense for you right now.Let's take a look.When can you refinance a car, and when is the best time to refinance?There are many factors to consider when it comes to refinancing. Here are some things to think about when determining if refinancing is a good idea for you right now.Your Existing LoanFirst and foremost, it's important to look at the terms of your existing auto loan.Sometimes, lenders will have prepayment penalties attached to the loan, so it is important to know what the penalties will be if you choose to refinance. If there are prepayment penalties, be sure to do the math to determine if the savings of refinancing will outweigh the downside.When determining the best time to refinance a car, it depends heavily on how long you have had your original loan and how many payments are remaining. Let's take a closer look at that.It’s the beginning of your auto loanWhile you can technically refinance immediately after you get your initial loan, it is generally better to wait a bit before refinancing your car.60-90 Days: This is the amount of time it typically takes for the title on your car to transfer. You need to wait until all the paperwork is finalized to refinance, so it's actually unlikely you'd even be able to refinance in this first period of time.Up to six months: It takes some time for your credit score to bounce back after the hard inquiry from your first loan. If you have fantastic credit, this might not be an issue. But, typically, waiting at least six months will yield more beneficial refinancing options. If you are a first time car loan borrower, it is recommended that you wait a year before refinancing your car. This will prove an on-time payment history and make you a more desirable candidate and qualify you for better loan terms and rates.It’s towards the end of your auto loanTo talk about why this matters, we need to get into the nitty-gritty of loans for a moment.First, how does interest on a loan work? Through amortization, the amount of interest you pay gradually decreases over the life of the loan. This means in the beginning of the loan, you are paying off more interest than towards the end of the loan. Let’s look at how car loans are constructed and how car payment amortization works.Car loans accrue simple interest. This means that if you take out a car loan for $20,000 at 5% interest with a 48 month payment, you will pay back $2,108.12 in interest, with monthly payments of $460.59 for the next four years. However, car loans are amortized and “front-loaded”, meaning that, in the beginning, your payments aren’t split evenly between your interest and your principal. The amortization schedule below shows how your monthly payments are split up for the first six months of your loan.Let's look, for example, at a $20,000 loan at 5% interest over 48 months.Month: 1Principal Amount: $20,000.00Monthly Interest Payment: $83.33Monthly Principal Payment: $377.25Ending Balance: $19,622.75Month: 2Principal Amount: $19,622.75Monthly Interest Payment: $81.76Monthly Principal Payment: $378.82Ending Balance: $19,243.92Month: 3Principal Amount: $19,243.92Monthly Interest Payment: $80.18Monthly Principal Payment: $380.40Ending Balance: $18,863.52Month: 4Principal Amount: $18,863.52Monthly Interest Payment: $78.60Monthly Principal Payment: $381.99Ending Balance: $18,481.53Month: 5Principal Amount: $18,481.53Monthly Interest Payment: $77.01Monthly Principal Payment: $383.58Ending Balance: $18,097.95Month: 6Principal Amount: $18,097.95Monthly Interest Payment: $75.41Monthly Principal Payment: $385.18Ending Balance: $17,712.78As you can see, in the earlier months you are paying more in interest than you are later on. Based on this amortization, you can see the total yearly amount paid in interest.Interest Paid:Year 1 - $894.80Year 2 - $657.79Year 3 - $408.68Year 4 - $146.83The majority of your interest is paid in the first two to three years that you have your loan. That means that the longer you wait to refinance, the less beneficial it will be to do so. This is because one of the major benefits of refinancing is less paid in interest over time, but if your interest is mostly paid off, you won't get to see that benefit.Current Interest RatesWhen deciding whether now is a good time to refinance a car loan, look at the current interest rates being offered. Are they better than your original interest rate? Depending on the size of your loan, even a .5 % difference can make a huge difference in the total amount you will be paying.Your Current Credit ScoreCheck your credit score using one (or all of the) of the three major bureaus: Equifax, Experian, and TransUnion. Is your credit score better than it was when you initially applied for a car loan? If so, now might be a good time to refinance.On word to the wise: Refinancing will result in another hard inquiry on your credit report, which will negatively affect your score for about a year. It may also lower the average age of your accounts, which can negatively affect your credit score. So, if you need a high credit score for another reason, like applying for a new mortgage or taking out a new lease on an apartment, consider this in your decision to refinance your car. However, there's no hard inquiry involved in getting a quote, so if you're not sure whether the savings will be enough to make a difference, you can always get a quick and easy quote to help make your decision.Your Current Financial SituationIf you need a little more breathing room every month in your budget, now might be a good time to refinance. By reducing your interest rate or lengthening the payment period, you can reduce your monthly payments. And, for those who need a break from their car loan, refinancing can also give you a few months off from payments.On the flip side, if you would like to pay off your loan earlier, refinancing to a lower rate and shortening your payment period will save you money in the long run. Depending on your current loan, you may even be able to pay less monthly and less in interest over time!When It Doesn’t Make Sense to RefinanceThere are times when refinancing will not be beneficial to you. If any of the following apply to you, it might not be the best time to refinance your car:Your credit score has decreased. You will most likely not find a lender to give you a better rate, unless your current loan is at a really bad rate.Your vehicle has a lot of miles on it. Most lenders have a minimum loan amount and if the car has depreciated in value significantly, it may not be worth your while.Your loan is “upside-down”. If you owe more on your vehicle than it’s worth, you may struggle find a lender that will be willing to refinance at a good rate.All that said, if you're on the fence, it can't hurt to try — getting a quote doesn't require a credit check and can give you an idea of whether or not you should refinance in just a few clicks.And that's everything you need to know about when you can refinanceWhile there are few limitations on when you can refinance, you can use this tips to time your refinance correctly to get the best possible deal. In order to find the best time to refinance your car, take a look at your current loan’s terms and payment period as well as your personal finances.Depending where you are in your repayment schedule, refinancing could save you a bundle. At Auto Approve, we help you find the best refinancing options for your situation. If you’re interested in refinancing, use our quote tool and we can help you find you your best possible savings to put more money back in your pocket.GET A QUOTE IN 60 SECONDS

Let’s talk about vehicle service contracts – what they are and why you could end up wanting one.See, as part of purchasing a new car, typically, repairs and mechanical issues are covered by the manufacturer’s warranty – for a few years. This coverage provides consumers with peace of mind when first purchasing the vehicle, but a few years down the line, it will fall on them to pay for these repairs that are no longer included in the contract. Since most cars last 5, 10, or even 15 years on the road (depending on the make and model), you can be stuck paying out of pocket to keep your car running smoothly for many years. After all, we all know that cars come with their fair share of mechanical problems over time. That’s why investing in a program or agreement that can provide you with mechanical coverage throughout the lifetime of your vehicle is worth considering. A vehicle service contract acts as a form of insurance policy as your car ages, providing you with the coverage you need while acting as an intermediary on your behalf.Here's all your questions answered about Vehicle Service Contracts.How Does a Vehicle Service Contract Work?Like an insurance policy, you pay upfront into your service contract. If your car ever needs any repairs covered, the provider will foot the bill on your behalf. This way, you don’t have to worry about any sudden repairs totaling thousands of dollars that can completely destroy your savings.In this article, we will give you an overview of vehicle service contracts, how to use them, and all other pertinent details related to providers, so you can make the best decision in the end. We have reviewed top extended car warranty providers and ranked them on things like customer service, coverage options, etc. below. What is a Vehicle Service Contract?As mentioned, a vehicle service contract is a paid plan that covers costly repairs after the warranty on your vehicle has transpired. Also called an extended car warranty, the service contact is available to both new or used cars. Note: as the car ages, the likelihood of frequent repairs increases, which means the contract will be quoted at a higher rate than one for a younger car.Is there a difference between a vehicle service contract and an extended warranty?The short answer is: yes. Vehicle service contracts do not extend a manufacturer’s warranty – only the manufacturer can agree to that. The contract mimics the factory warranty coverage as a third party, providing additional coverage that is not provided via the manufacturer. Also note: not all vehicle contracts are made equal, so be sure to check out the extended car warranty available to you as well and compare the two.What Are the Two Types of Vehicle Service Contracts?You have a regular and exclusionary contract option. The regular contract will list all of the things that are covered in the agreement. The exclusionary will list everything that is not. If possible, opt for the regular contract that does not use backward logic – it can be easier to identify what you are buying with the agreement.What Are Vehicles Service Contract Price Ranges?There is no one-size-fits-all when it comes to vehicle service contracts and pricing. The cost of the contract will depend on your vehicle’s make and model, as well as the condition of the car. It will also depend on what level of coverage you agree to, and if you want the provider to cover 99% of breakdowns and repairs. Just like an insurance policy, if your car is older and riskier to the lender, they are going to require that you pay more for the contract.In general, these contracts can range from $199 to $1,000. Most vehicle contracts will fall into the $350 to $750 per year range. You will want to compare how much typical repairs for your vehicle will cost, when compared to this coverage. If you figure that you will owe around $1,000 this year in repairs, then taking on a $500 contract may make sense.How Do I Use My Vehicle Service Contract?You can access the contract anytime your vehicle needs a repair. Like any insurance company, all vehicle service contract providers will include different tiers of coverage. Not every tier is going to cover every possible repair, which again, is why you will want to review all details before agreeing and signing. Each provider will also have their own process as to how claims are filed, and ultimately, covered. Some providers will require that you pay for the repair and then they reimburse you. Other providers will partner with repair facilities and not require this kind of capital be fronted in order to engage with the repair. It depends on your cash flow and what you know is possible for your finances.Vehicle Service Contract Exclusions to NoteWhen you purchase this contract, you will want to review it carefully. Most contracts will list all of the parts that are covered, however, should you find yourself with an exclusionary contract, you will want to review what is instead, not covered. Even if it appears that the repairs that you do want to be covered are not on the exclusionary list, you will want to clarify with the company exactly what their contract means.Should I Purchase a Vehicle Service Contract?These contracts can make a lot of sense for used vehicles, which can come with complications down the line that you were not originally aware of. If you purchase the vehicle from a reputable brand, it is recommended to first inquire into the extended warranty package and how it compares to a rate from a vehicle service contract. And that’s everything you need to know about Vehicle Service Contracts.For many people, knowing there is a ceiling on how much they are going to pay for their vehicle’s repairs is all they need. Here are Auto Approve, we are proud to provide you with the real, genuine information you need to make smart decisions for your vehicle. We hope you have found this article to be helpful and informational.

Are refinance rates different from the rates on new car loans other people are getting? It's a worthy question.Everywhere you turn, it seems like people are talking about interest rates. Terms like “historically low” and “all time low” are being tossed around like confetti, and you definitely don’t want to miss out on whatever party is happening (especially if that party is about saving you some cash, right?). But wait – you already have an auto loan, so how can you benefit from all of this? The answer, of course, is refinancing.Let’s take a look at the benefits of vehicle refinancing.When you refinance a car, you start over with a new loan, and your interest rate can change drastically.Is the process of refinancing the same as the process of applying for a new auto loan?Refinancing is simply paying off your existing loan with a new loan. You are essentially just replacing one financing option with another. The new loan will ideally have a better rate or some other favorable features that make it more desirable than the original loan. You will still have to apply for the new loan, you will still be bound to a loan payment schedule, and you will still offer your vehicle as collateral.The Application Process is the SameWhen refinancing your car, you will need to do research and apply to different lenders, just as before. You will have to provide the same documentation as you did the first time. These documents usually include the following:Photo ID. This can be a passport, driver’s license, or other government issued photo identification.Your vehicle’s information. This often includes the bill of sale, VIN number, the make, model, and year of your car.Proof of income and financial history. Lenders want to see that you are actively earning income. The lender will specify what documents they wish to see, but this often includes pay stubs, banking information, credit history, and other financial account information. This will verify that you are a strong candidate for a new loan and that you will be reliable with your repayment.Proof of residence. Lenders need to verify where you actually live. This can be a mortgage statement, lease agreement, or utility bill. PO boxes are not acceptable as proof of residence.Proof of insurance. Lenders will want to know that there is state-required insurance on the vehicle.Think of these papers as your resume or online dating profile. You want to look as desirable as possible to the lenders you are pursuing. The more desirable you are, the more worthwhile refinancing will be.Just like with your original application, you want to compare the different offers and see who offers the best terms overall. At Auto Approve, we'll help you compare all of your offers to ensure that you are getting the best deal possible.The Loan Terms May DifferAfter refinancing, you will still have an auto loan that you will need to make regular, scheduled payments on. Your payment schedule may change, however. Your schedule may be shorter, so that you can pay off your car faster. Your schedule may lengthen, making your monthly payments lower. Or, your payment schedule may stay the same. And your vehicle will ultimately serve as collateral for your loan, as it did with your original loan.The main benefit of vehicle refinancing? The interest rate.If you are simply changing from one loan to another, why bother refinancing a car? Why bother with that whole lengthy application process, the approval, and the possibility of rejection? The biggest, most important reason of course – money. You can save a boatload of money by changing your interest rate. The lower your interest rate, the less you pay in interest (duh) and the more money in your pocket at the end of each month.There are many reasons your interest rate can change when you choose to refinance your vehicle. These reasons have to do with your personal credit, income, and job status, as well as the economy in general.Increasing your credit score can result in a lower interest rateYour credit score is the single biggest factor in your refinance rate. If your credit score has increased since your original loan, you may be eligible for a lower rate. The following factors can help contribute to a higher credit score:History of on time paymentsLow balances on credit cardsOlder credit accounts that are in good standingHaving a good mix of credit card and loan accountsA small amount of new credit inquiresIf you have a history of late payments or carry high credit balances, these can negatively affect your credit score. If you have made a lot of new credit inquiries recently, this can also lower your credit score, so you will be better off waiting a year or so to apply for car refinancing.It is generally recommended that you pull your credit report ahead of time and review it for any inconsistencies. It is free to pull your credit report from the three major agencies once per year without it negatively affecting your credit score. These agencies are Equifax, Experian, and TransUnion. If you come across anything that is incorrect, you can dispute it with the credit bureau and petition to have it removed from your report. An increase to your income or change in job can result in a lower interest rateIf your income has increased since your original loan, lenders may view you as being more financially stable and therefore offer you a lower interest rate. But the number on your paycheck isn’t the only factor that matters. Having a stable, salaried position may secure you a better rate than being self-employed or working as a freelance employee. These will all help you become more attractive for a vehicle refinance. A decrease in your debts can result in a lower interest rateIf you have less debt than you did when you originally got your loan, lenders may view you as being more financially stable. Decreasing the amount of money you owe in general can lead to lower interest rates.The current economy is offering lower interest ratesRefinance rates depend in part on how healthy the economy is in general. Big banks adjust their target interest rates to respond to the economic climate. If the economy is strong, they tend to increase interest rates. If the economy is a bit sluggish, they lower interest rates to encourage spending. After the tumultuous 2020-2021 economic season, interest rates are currently at historic lows. However, many economists think that as the months go on, the interest rates may start to steadily increase. So, if you are wondering, “When is a good time to refinance a car loan?”, the answer might be right now.And that's everything you need to know about refinance vs. new car ratesAs you can see, there are many complicated factors that make up the interest rates for refinancing. It can feel overwhelming when there are so many different lenders to consider, all of which have different rates and terms to offer. That’s why, at Auto Approve, we work as your advocates, approaching different lenders to help you find the best rate and best terms available. When you refinance with Auto Approve, you can put more money back in your pocket for the things that matter, and we make the process quick and hassle-free – and never mark up your rate.GET A QUOTE IN 60 SECONDS

Plans change, things happen, and unexpected events can throw us totally off-course from what we thought we needed in our daily lives. When it comes to the terms of your auto agreement, a lease might have seemed like an apt solution at one point; yet, due to circumstances out of your control, being in a car lease no longer makes sense for you.Fear not, millions of people find themselves in a similar predicament throughout the year, which is why it’s not uncommon to want to learn how to get out of a car lease contract early.It’s no secret that figuring out how to get out of a car lease agreement early can be a costly and lengthy process. But, you have options at your disposal that can make the entire experience more bearable, and we’re here to discuss them with you today. Whether you lost your job and can no longer afford the payments, or you need to outright own your vehicle for whatever reason, it’s time to investigate the alternatives that can put you into a better financial situation. Based on our research, we are going to provide you with 3 potential options below.How to Get Out of a Car Lease Early: 3 Routes1. Terminate the Lease Early: In many arrangements, your leasing company will offer you the ability to terminate your lease prematurely. This means you are free from making the remaining payments on the currently leased vehicle. But, in order to do this, you will have to turn in the car and pay the entire balance that is due, as well as the costs and fees that are probably going to be slapped onto the early termination. Remember that the Consumer Leasing Act does mandate that all of these details are included and available for you to review in the lease you have on record.So, let’s say you go for this option. The company may charge an early termination fee, which is normally the balance between the remaining balance and the credit you will receive from the value of the car. You may also have to pay a disposal fee, transfer fee, and taxes. All of this is disclosed inside of the signed lease.The fastest way to know what this total is going to be is to call up the leasing company and ask them point-blank what the total is going to be. You may also have to pay late fees, parking tickets, or anything else that has been accumulated as part of your leasing account.Since a car’s value typically depreciates more upfront, the earlier you terminate the lease, the higher the cost is going to be on your end. In many cases, the termination cost may be so high, that it makes more sense for you to complete the lease as agreed upon. If you don’t have the financial means to do this, you may need to finance the costs if it’s a life-or-death decision.2. Transfer the Lease: As you can see, terminating the lease may not be the most cost-effective option for you at this time. But you have another option: transferring the lease to a new lessee. In order to engage in this option, it needs to be one that is legal in your state, in accordance with your lease terms, and the party you are transferring the lease to needs to satisfy the requirements set forth by the lender.Don’t be fooled: this option will still come with hidden fees, like the lease transfer fee and other costs that will pop up. You should do your due diligence and ask for a final total from the leasing company before you opt for the early termination. If you are struggling to find a company that you can transfer your lease to, you can consider using a service that connects you to a new lender.3. Buying Out Your Lease: Depending upon the scenario, buying out the car entirely may be one of your best options with early termination. Yes, there are still fees involved; but, it’s worth running the numbers and seeing if an early buyout, along with the associated fees, comes in at a lower amount of what you could get if you go through with selling the car on your own. Or at least, if selling the car thereafter is still a feasible financial option when compared to the other two options listed above.Do note: in order to pursue this solution, you need to have the funds available to pay the early buyout fees. If you don’t, you will need to factor in buyout financing as part of the deal.If the market value of the car ends up being higher than the leasing company predicted it would be, a lease buyout may be the perfect solution for you and your wallet.Bonus: if you are leasing or purchasing another car when you terminate the car lease early, you may be able to roll over the amount you owe on the car you are returning to the amount you are financing for a new car purchase. This will create a higher monthly payment, but it at least will be one singular payment that may be easier for you to manage and pay off.Is it a Good Idea to Get Out of a Car Lease Prematurely?In many cases, you may have no other choice. If you go through all scenarios above and receive quotes, you can compare them and see which one makes sense. If all three options still clock in higher than your monthly leasing payment, you may want to consider financing – or – sticking with your car lease until the contract is terminated.Note: many people buy out their leases to avoid excess mileage fees, especially if you drive more than was agreed upon initially, or because used car values have increased recently, making your current vehicle worth more than the dealer thought it would be several years ago.The worst thing you can do is agree to one of these options without hearing the final monetary amount, first. Don’t be afraid to demand that from your leasing company: it’s a service they owe you as your lessee. Are you ready to get out of a car lease contract early? We hope this article helped.GET A QUOTE IN 60 SECONDS

It can be easy to get caught up in the car leasing gimmicks that are floating around all media and advertising spaces today. Many of these ads will claim that a lease is only $58 per week or $139 bi-weekly. These companies will state that it is easier to get into a new vehicle through a lease than it is by outright buying the vehicle.It may sound wise in nature, yet this is not always the case, and we want to talk about it in this article. In reality, leases are often much more expensive than they advertise and end up costing more than just financing the car in the end. How does this happen? Through the fine print, hidden fees, and extra costs that come with breaking leases or engaging in something that is not included in the confusing contract you sign when you agree to a lease.In order to protect yourself from unknown fees before you sign that dotted line, we’re going to look at some of the hidden penalties you should review in a car lease.Fees at the End of a Car LeaseHidden Interest and Taxes: Interest and taxes are surely applied to your car lease, even if it’s something they leave out of that ‘$58 per week’ marketing ad. When these two elements are factored into the equation, it’s more like $80 per week, and that’s just with the terms provided when financing a car. This can vary based on state, county, and dealership, which is why you should always factor in a lofty sum of money to cover interest rates and taxes.Can I negotiate these lease charges? Although you may be able to negotiate other elements of the lease, you will most likely be unable to negotiate the interest rate, much less the taxes. Be sure to check if there are any tax breaks available in your state for a car lease (note: they are usually not enough to compensate for the high-interest rates that are charged by dealerships today).Administrative Fees (Twice): Dealerships will apply two different administrative fees to your lease as a part of doing business with them. The first fee will come when you initially lease the car. The second fee will come when you return the car after the lease is completed. These fees can be as much as $750 each time, justified as a way to compensate the administrative staff that will have to process the paperwork for the termination of the lease.In most cases, the average consumer is not surprised to see that fee the first time they take the car off of the lot. But, when they see the fee again after they return the car, they are shocked to learn that an extra $1,500 in total was omitted from that monthly payment number when they first inquired about the car lease.Termination Fees: Yes, you will be penalized if you decide to terminate a car lease before the agreed-upon date. You are probably thinking to yourself: but why? Isn’t the dealership receiving the car back in a better condition than if I had kept driving it? Whether you are moving, downsizing, or lost your job, any of these reasons will make it necessary for you to terminate the car lease. And, you have that right to do so, but you will be hit with a termination fee. The fee amount will vary based on the information in the lease you signed. Many people will find they end up paying the full amount of the lease via the termination fee, even if they turn the car in a year early. Be sure to ask the lessee to disclose what this fee is to you if you predict yourself needing to terminate the lease prematurely.Mileage Variations: A general car lease will enable people to drive 12,000 to 15,000 miles per year, give or take. If you go over this mileage count, you will have to pay for it – at 10 to 20 cents per mile. If you do the math, that means you would owe $1,800 on an extra 3,000 miles you drove over the preset amount. Extra mileage is one of the biggest ways a dealership makes a profit off of this lease – they can almost count on you breaking the agreement. If you predict yourself needing to drive a fair amount in the coming years, this is a major reason why a car lease may not make sense for you.Mileage Punishment – Auction Fees: Not only are you going to be slammed with fees per mile that you go over the agreement, but the dealer also reserves the right to tell you that you have to sell the car returned at auction. This means you are responsible to cover the difference between what the car sells for at the auction, and the initial value of the car that was configured based on the pre-defined mileage count. So, let’s say the dealer figured the car would be worth $13,000 after you returned it within the mileage count. If you go over that mileage count and the dealer determines the car is now worth $10,000 at auction, you are required to cover the $3,000 difference that they ‘lost’ as a result of your negligence. As you can see, this gives the dealer way too much wiggle room when it comes to the interpretation of the car’s worth. This is something you will want to hash out with the dealer before signing any paperwork. The Down Payment Omission: And finally, back to that $58 example above: this is a payment amount that is described after the down payment has already been put down on the lease. If you put a $5,000 down payment on the lease, your bi-weekly payment may only be $100 or $200 because you already paid handsomely to drive the vehicle. The moral of the story: that ad-based monetary amount is false.Need help refinancing your vehicle? We recommend you talk with our team first before signing any leasing paperwork. Auto Approve is here to help.GET A QUOTE IN 60 SECONDS

It started with toilet paper and aluminum cans, then bicycles and lumber. The world has gone through wild cycles of demand and supply over the last year, but not many people could have predicted this economic brain-teaser: car prices are through the (metaphorical) roof, with no indication of slowing down. For decades, conventional wisdom has held up for individuals who are purchasing a car. If you get a brand new car, you’re told that its value depreciates as soon as you leave the parking lot. A used car’s value only went down with time and kilometers. Conversely, if you were in the market for a used car, you could count on paying a fair price given the age and usage of the vehicle. In 2021 however, used car prices saw their biggest price increase in 68 years. Here’s what that looks like, according to Business Insider: An inflation by any other name...When the May consumer price report was published earlier this year, there was one glaring anomaly that, given the circumstances, was very alarming. The US was finally showing signs of coming out of the pandemic-induced recession, and business trends were looking up. However, the data showed inflation rising at the fastest pace since the 1990s. Some people (and economists) are using this data as signs that a long inflationary period is on the horizon. Could the government policies and market trends during the pandemic actually lead to a multi-year, super-inflationary period?Turns out that the trend was driven in large part by the uptick in just a few categories. According to Vox.com, about half of the increase in prices could be attributed to just four categories: used cars, rental cars, hotels, and plane tickets. Notice a pattern?Source: Vox.comDemand for cars and travel: Fast and furiousIn a normal year, used car prices typically rise about 1% annually. In 2021 so far, used car prices are up nearly 30 percent. Two factors are behind this unprecedented rise: supply chain disruptions in the new car market due to a global shortage of semiconductor computer chips, and the available inventory of cars.The semiconductor chip shortage: This has been a weird year for semiconductor microchip manufacturers (and everybody else). Car manufacturers cancelled orders for new chips early on in the pandemic because of low forecasted demand, but the opposite scenario turned out to be true. Earlier in the year, there was a major shortage of microchips, especially for North American car companies like Ford and General Motors. Fewer new cars were manufactured or brought over to the US. Available car inventory is low: With almost no US company able to manufacture new cars, used vehicles became harder and harder to come by. This led to a continent-wide inventory shortage. There just aren’t enough cars as there are potential car buyers. Dialing it in: how do these macro-trends impact you and your financial goals?At first glance, it may seem like buying a car is not a financially feasible decision anymore, at least in the near future.However, the rise in car prices have led to an unanticipated bonus for potential car buyers: auto loan refinancing approvals have increased 66% since May 2020, for the most part due to the rise in vehicle values and their positive impact on loan-to-value ratios (more on LTV later).It’s a win-win. Sellers get the immediate payoff from the current prices, especially if they’ve been wanting to sell or trade-in their wheels for a while. Buyers are getting approved for auto refinance requests more than ever before. As vehicle values go up, the Loan-to-Value ratio adjusts downward automatically. Since a lower LTV makes it easier (and cheaper!) for borrowers to refinance, this is a great opportunity for buyers in the market.Loan-to-Value (LTV): what it means and why it mattersLTV, or Loan-to-Value, is an important ratio to know when you’re financing a large purchase like a car or a house. It is a measure of risk, showing lenders (and buyers) to what degree a loan is backed up by a tangible, real asset. LTV is calculated by dividing the loan amount by the fair value of the asset. Say the car that you’re purchasing is $20,000 and you get a loan for $15,000, your LTV ratio is 75%. That means that 25% of the appraised value of the asset is not covered by the loan. The Loan-to-Value ratio is an important consideration when lenders are figuring out who they can loan out to (and at what rate). LTV ratios trending lower are great news for borrowers who may not have been able to get approved for auto loan refinancing in the past. Similarly, borrowers who already qualified for a refinance will get better loan terms if they apply now. Advantages of refinancing your auto-loanAccording to Experian, the average loan amount for a new vehicle is $33,739, and a used one usually runs up to about $20,723. Since a car is a major purchase for most people, going for refinancing while approval rates are so high can help you lower your interest rate, reduce your monthly payment, and improve your cash flow. Essentially, refinancing a car loan involves borrowing money from a new lender to pay off the current car loan lender in order to get more favorable rate terms on your new loan. Here are more details on how you can benefit from refinancing your car loan:1. You’ll end up paying less interestMost borrowers will end up paying less interest over the term of their loan if they refinance. Here is a calculator you can use to find out how much money you’d be saving through a refinance. The final amount depends on the remaining life of your loan and your new rate, but usually taking a few hours to refinance your auto loan can add up to hundreds (if not thousands) of dollars over years. 2. You can improve your cash flowIf you purchased your car a few years ago, you would not have had access to today’s historically low rates. Or maybe you financed your car through the car dealership, which generally doesn’t have the lowest rates in the market. Finally, if your credit score or income was lower than what it is right now, you can almost guarantee a lower rate through a refinance. While there are fees associated with refinancing an auto loan, borrowers almost always save more than they spend. Generally, if you refinance early on in the life of the loan, you’ll save more money. Personal finance website Credit Karma found that the average savings for members who refinance loans through its service is $3,000, or about $55 per month.3. Your LTV value will most likely improveRefinancing your auto loan may lead to a lower LTV ratio. Your car gets a brand new appraisal during a time when car valuations are much higher than previous years, so the ‘value’ part of the Loan-to-Value ratio goes up. A lower LTV in turn can allow you to make smaller monthly payments, if that is what fits into your budget right now. It also means you have more equity in your asset (your car), and you can use that higher valuation to support other financial moves (like using it as collateral for a business loan, etc).Why now is the perfect time to refinanceThe pandemic caused an unprecedented reduction in the supply of both used and new cars. And pretty much immediately, prices went up. This market bubble, combined with the historically low rates that the government has introduced, presents an opportunity for car buyers to refinance their car purchase. With a 66% increase in auto refinance approvals since last year, borrowers should take advantage of market trends while they can. There is a strong case for consumers to secure a refinance during a period of historically low interest rates and high car values. If you’ve been thinking about refinancing your auto loan, now is the time to apply. Unlike refinancing a mortgage, refinancing a car loan is extremely easy. It can almost entirely be done online and within a couple hours in most cases. Prospective buyers who did not get approved for auto loan refinancing even a few months ago might be hesitant to try again, but remember that the lower LTV ratios right now mean that your application is more likely to get approved without you having to take any additional steps. Consumers with strong applications (great credit, stable income, low debt, for example) may get even better loan terms. Rates are as low as 2.25% right now, making the cost of borrowing almost negligible. Simply put, borrowers benefit when rates are low. If you’ve been looking for a way to cut down on your monthly expenses, this is one expense that can make a huge difference.Although car values are expected to remain high for another few months, the truth is that a trend like this quickly gets corrected through policies and market forces. Consumers and borrowers who have been on the fence should take advantage of this market sooner rather than later and refinance their auto loans while conditions are still so favorable. GET A QUOTE IN 60 SECONDS

We can’t always control the circumstances in our lives, which is why at times, our financial situations may change without warning. Whether you want to simply lower your car payment, you want a lower interest rate, or you want to remove a co-borrower from your loan, auto refinance is a viable and responsible option that is available at your disposal today.When you elect to refinance your car, Auto Approve makes the process easy by paying off your old loan and setting up your new, more favorable loan. This can be an option for you no matter what your credit score is. Most people don’t realize that they may qualify for a lower monthly payment or interest rate, or how simple it is to remove the co-signer from your original loan for whatever reason. The beauty of auto refinancing is that you get a fresh, new start with better terms and rates than your original loan. The fact is, most people are eligible for much better terms than they currently have. It’s always smart to sit back and reflect on how you can achieve the best possible loan terms and rules for your present financial situation. The process just takes a few minutes - you submit your information, and Auto Approve taps into their network of the nation’s top lenders to get you the best terms possible.But, before you dive into auto refinance full-speed-ahead, let’s first look at a general overview of how to refinance your car, and if it makes sense for you.How to Refinance Your CarGeneral Overview: Does Refinancing Make Sense for You?Although auto refinance makes sense for the majority of situations, it’s still something you want to review before you commit yourself fully. If your current loan has a prepayment penalty, you will want to explore what that penalty looks like and if you can have it waived. Most of the time, there is no prepayment penalty, but it’s always wise to do your due diligence and check.If there are additional fees associated with canceling the loan, like needing to re-register the vehicle and transfer the title after refinancing, plan for this ahead of time. Fees can change per state, so it’s worth checking on what the specific details are for your state.You also want to consider the age of your car. Some lenders will be stricter about refinancing cars that are over 10-years-of-age or with more than 100,000-miles on the car. Overall, though, if you need to change the terms of the loan immediately or your credit score has improved, then the cost savings that come with these changes can override the fees mentioned above. That’s why auto refinance is something that is recommended for the majority of people today. We just want to encourage you to, as always, do your homework.Gather the Necessary Documentation:Now that you have determined that you want to pursue auto refinance, it’s time to collect the necessary documents to make it happen. Here is some of the information to anticipate presenting: employment information and history, residential information and history, social security number, date of birth, proof of mortgage statements, and address.Some lenders will want to know that you can repay the loan you are signing to. A paycheck stub, or a tax return can satisfy this request. They may also request proof of insurance as part of the process. Next, you will need to know the balance on your current auto loan, as well as that lender’s information if you are switching to a new lender. It’s worth noting your interest rate and length of the prior loan so that you can use that as leverage when shopping for a new loan.You will need the vehicle identification number (VIN), which can be found on your insurance card or located on the registration and title statements. Speed Up the Process with Prequalification:It’s time to expedite the process with prequalification. Applying for prequalification can be a great place to start so that you know your leverage. To get prequalified, the lender will gather a few pieces of your personal information as stated above. Once the information has been gathered, Auto Approve will prequalify your file and give an estimate or pre-approval that will provide you with an idea of what rates and terms you qualify for at that time.Apply for the Auto Refinance Loan:Ok, the moment is here. You are ready to apply! You will need to complete a loan application. Auto Approve then decides the best fit lender based on the prequalification and the credit profile of the applicant. Our team will submit the application to the lending institution. We will contact you for approval prior to submitting the application so you are in the loop from start to finish. Should the loan be approved, you will sign the paperwork presented by the lender, detailing the terms of your new loan. Always keep a record on file for future reference. The minimum amount you owe each month will be included via the digital copy of the deal. Be sure to never go below the minimum amount. If possible, pay more than the minimum amount to shorten the life of the loan.Transferring Your Old Loan:The transition from your old-to-new loan will be handled by Auto Approve. Be sure to still reach out to the previous lender to ensure that the transition has been done timely and professionally. When to Refinance a Car LoanWe know that was a lot of information, which is why Auto Approve is here to assist you throughout the entire experience. We make refinancing simple and easy, saving you time, frustration, and potential credit dings along the way. Start with a quote through our platform, and allow us to work with banks and credit unions to find your best rate. That’s it. Auto refinance, made with you in mind.GET A QUOTE IN 60 SECONDS

It’s hard to overstate the importance of a good credit score. After all, they are the main factor that lenders use when determining whether or not you are a good candidate for a loan. But your credit score is important for reasons beyond borrowing. A good credit score can help you score a better apartment, get you better rates on car insurance, and more. But how much do you really know about your credit score, and what questions should you be asking?Here’s everything you need to know about your credit score.What is credit? And what is a credit score?Credit refers to any agreement where a borrower receives money from another person or institution with the understanding that they will repay the money, usually with interest. When people talk about credit, they are referencing their credit history, which is a record of their credit usage. A credit score is a number that indicates to lenders their capacity to repay a loan. A credit score is between 300–850 and indicates a consumer's creditworthiness. The higher the score, the more likely a person is deemed to pay back their loan. How are credit scores calculated?Credit scores take into account five different factors in your credit history. Each factor is weighted differently. The factors are:Payment history (35%). Do you pay your accounts in full and on time?Amounts owed (30%). How much money do you owe?Length of credit history (15%). How long have you had accounts?Credit mix (10%). Do you have a healthy mix of accounts?New credit (10%). Are there new accounts that you haven’t proven your ability to pay?Every month different agencies will voluntarily send information to credit bureaus. These agencies typically include banks, credit unions, retail credit card companies, mortgage companies, car loan lenders, and debt collectors. These companies will share:Any new applications for an accountThe date a new account is opened and the loan amount/ credit limitThe account balanceThe status of payments madeWhether or not the account is sent to collectionsAdditionally, credit bureaus also purchase public records from public records providers. These include liens, court judgements, and bankruptcy filings.How do I know if I have good credit?The best way to know if you have good credit is to simply check your credit score. There are many sites that will allow you to check your credit score for free, so it’s a good idea to monitor it regularly. Additionally, you should check your credit report at least once a year (but we recommend reviewing it three times).Credit bureaus will allow you to access your credit report once per year for free and without it affecting your credit score. If you do this once every four months at each of the three bureaus, you will be able to effectively monitor your credit.Your credit score will follow into one of five categories, which will indicate the health of your credit score.Exceptional (Super prime): 781 to 850Very Good (Prime): 661 to 780Good (Non prime): 601 to 660Fair (Subprime): 501 to 600Poor (Deep subprime): 300 to 500What should I look for in my credit report?When you are able to review your credit report there are several things you should look for. Your report is broken down into four sections that you should review.Your personal information section. You should review to make sure that your name, address, social security number, employment history, and marital status are all up to date.Your public records section. You should review this to make sure that there are accurate records of any lawsuits, bankruptcies, liens (including tax liens), and judgements. Your credit accounts section. This will be the longest part of your report, but it's where the meat of your credit score lies. Review it to make sure your payment history is correct, that account ownership is correctly listed, that debts that are paid off are listed as so, that closed accounts are accurately noted, and that there is no negative payment information that is older than seven years.Your inquiries section. Review this to ensure that you authorized any hard inquiries on your account. It is illegal for someone to request a hard inquiry without your consent.If you notice any errors to the credit agency as soon as possible. They will look into the matter within 30 days. If they do not comply they will be in contempt of the Fair Credit Reporting Act.What are the benefits of good credit?There are many benefits of having good credit, and in general it will make your financial life much easier. These benefits include:You will be offered lower interest rates on credit cards and loansLenders will be more likely to approve youYou will get utility services more easilyLandlords will approve you for rentals more easily You will be approved for higher credit limitsYou will look better to potential employersYou will get better insurance ratesYou will have better negotiating power for loans and accountsWhat credit score do I need to refinance my car?There is no magic number credit score when it comes to refinancing your car. But car loan refinance is much more beneficial when your credit score is in good shape.The car loan APR you are offered will be based on a few factors:Your credit scoreYour income and debt-to-income ratioYour vehicleYour current loan informationCurrent market ratesYour credit score is the factor that you will have the most control over. The better your credit score is the lower the car loan APR you will be offered. The best rates are reserved for those with the best credit, so taking the time to improve your credit score is well worth it.Does refinancing affect credit score?People commonly wonder if refinancing hurts credit score. And while it will affect your credit score slightly, the benefits of refinancing a car will far outweigh any slight dips that it may cause in your score. Refinancing a car loan affects two parts of your credit score, your history length and your new credit. Opening a new account, it will shorten your credit history length. It will also count as a new credit and the hard inquiries will be noted in your credit report. But both of these will only cause slight dips in your score, and hard inquiries only affect your credit score for about a year.But the benefits of refinancing a car loan can really help your credit score. If you are having trouble making your monthly payments, refinancing to a longer repayment period can lower your monthly payments and make your monthly budget more manageable. This means that you will be able to more consistently make payments (on all of your accounts, not just your car loan). And that can really bump your payment history section, which is the most influential section of your credit report.Refinancing to a lower car loan APR can also loosen up more money in your wallet so that you can pay down other debts, which will also improve your credit score.How can I raise my credit score?If you are interested in refinancing a car loan it is a good idea to work on your credit score before applying. This will give you the best chance to be offered good terms and a good car loan APR. There are a few steps you can take to ensure your credit score is in its best shape before you apply.Make on time payments to all of your accounts (consider autopay if applicable).Check your credit report for errors.Pay down debts with high credit utilization ratios first.Continue using your credit responsibly.Don’t close any credit accounts.Request higher limits on your accounts.Catch up on any past due bills.Have someone cosign a loan with you (you can benefit from their good score).There is no quick way to improve your credit score. It will take time and commitment, but it will be worth it for you in the long run.That’s everything you need to know about credit scores: what they are, why they are important, and how you can improve yours.Building a great credit score takes time, but it’s incredibly important to your long term financial success. Better interest rates, easier approvals, and more peace of mind are waiting for you on the other side.Refinancing a car loan is a great step to helping your credit score. While you want your score to be in great shape before applying for refinance, keep in mind that it can help you improve your score too by loosening up some money every month.If you are thinking about refinancing your car loan, contact Auto Approve today! Our experts can help guide you through the refinancing process and help you start saving money immediately.So don’t wait, contact Auto Approve today to get started!GET A QUOTE IN 60 SECONDS