Buying a car is a big commitment. Unless you have the full amount of cash on hand, you commit to auto financing, whether that is a lease or a new loan.
A loan will enable you to take your car off the lot and call it yours – as long as you don’t miss a car payment.
Sometimes, those loans can leave you with a high-interest rate, leading to monthly payments that can be hard on your budget.
It adds stress not only to the car buying process but to the way you spend money throughout the length of the loan.
The good news is that you have options to lower the ding on your wallet from your old loan.
Auto-loan refinancing helps put money back in your pocket by reducing your Annual Percentage Rate (APR) for interest – not the principal of the loan.
It’s possible to get lower rates through a big bank or any other lender network, but you will more likely accomplish it if you have an expert on your side.
An expert will guide you through the loan application and keep your best interests in mind.
RateGenius, a company based in Austin, Texas, is an online auto loan refinance company that can help you refinance your current loan or provide a lease buyout on your car.
The goal is to snag a lower interest rate and put money back in your pocket! What could be better than that?
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How Does RateGenius Work?
RateGenius is not a direct lender, but an intermediary that connects you to a lender to which you likely would not otherwise have access.
From small credit unions to banks, RateGenius searches a wide array of lenders for every application, saving you money on your car, truck, or suv.
RateGenius is an online company that partners with Lendingtree and requires only an internet connection and personally identifiable information to help lenders determine if you are qualified.
After you provide your phone number and other relevant vehicle information, the vin, make, and model, you’re quite on your way. From there, it’s all about you and the lender they choose.
Not sure if RateGenius is for you? Answer these questions:
- Have you seen a rise in your credit score since purchasing your vehicle?
- Is your current APR more than 6%?
- Have you had financial setbacks?
If you answered yes to any of those questions, an auto refinance loan very well may be right for you.
RateGenius is easy to work with, fast, and has few requirements from you before you can connect with a lender.
- You must be at least 18 years old
- Must have a credit score of a least 550
- Must have an income of at least $2,000 a month
- Can live anywhere in the United States
- Your vehicle must be no more than 7 years old
- Your car must not have more than 100,000 miles
If you’re still a match with this information, applying is as simple as going to the RateGenius website and filling out a form.
Rest assured that your loan information is safe and secured throughout the application and lending process. Third parties do not retain any data such as your social security number or driver’s license number unless you select them as your new lender.
How Much Can You Borrow from RateGenius?
The great news? RateGenius auto refinancing options work for almost all vehicles.
The company allows you to borrow various loan amounts anywhere from $10,000 to $90,000. Plus, it is not limited to a single-vehicle per applicant.
What is the APR with RateGenius?
RateGenius helps to connect you with other lenders – smaller credit unions who remove the big bank. It will help you secure the best refinance options for your budget.
Though it’s important to note that the lender determines interest rates and based on credit score, applicants can expect an APR of as low as 2.99 percent or as high as 25.87 percent.
So, why does this matter? Well, on average, RateGenius users save $76 after refinancing with a lower APR.
For example, if you’ve taken out a $20,000 loan with a 10 percent APR, your interest amount will be $5,000. With help from RateGenius, however, you could get that APR lowered to 5 percent, which amounts to just over $2,500 on the same loan!
Are There Any Fees?
RateGenius acts as a middleman, connecting applicants with lenders with the lowest rates. Though RateGenius does not require a fee to use its services, a lender they connect you with might charge fees.
So, it’s essential to read through all documents to identify any application fees before selecting your auto refinance lender.
Is RateGenius A Hard Inquiry?
Yes, using RateGenius requires a hard inquiry on your credit report or a deep look at your credit history, connecting you with proper lenders. This credit check is the most efficient way to get it done.
A hard credit pull can, but does not always, lead to a change in your credit score. As a result, we recommended that you only go through the RateGenius process if you are a serious auto loan shopper.
It goes without saying but the better the credit, the lower the rate. Good credit is generally considered to be a credit score of 720 or higher. Not sure what your credit score is? Experian is one of the three credit that produces reports on your borrowing history, such as credit cards or any other loans.
Pros & Cons of RateGenius
As with any service, there are both pros and cons of doing business with RateGenius.
Overall, it is a reliable option for serious applicants with a steady income and an average or better credit score.
- Vehicle requirements are standard and not outside of the excepted wear-and-tear on a car, which aligns with other auto-financing businesses.
- RateGenius checks more than 150 lenders nationwide, giving you the potential for multiple, reliable options for your refinancing.
- You are not required to accept a loan offer simply because a company approves you for it.
- The application process is simple, straightforward, and quick to complete.
- Loan terms range from 24 to 87 months, which are longer than many initial car-loan options.
- Has an affiliated insurance broker that can provide gap insurance. This helps protect a new car owner from any depreciation should the car be totaled, leaving you with a loan amount greater than the car value.
- RateGenius accounts for a hard inquiry on your credit score. Only serious shoppers should apply.
- The company’s approval rate might go as low as credit scores of 550 but favors applicants in the 690 range, on average. So, this is not for people with “bad credit.”
- RateGenius does require that you have a minimum income of $2,000 a month.
- Loan approval can take up to 48 hours, making it one of the slower refinancing sites for awaiting approval.
- RateGenius also has an affiliated insurance company. You are likely to hear from an insurance representative after you go complete your refinance, but you don’t have to work with them.
Is RateGenius Best For You?
If you’re interested in saving money and paying off your auto loan quicker, RateGenius is likely what you’ve been trying to find.
Get started today and get some more money back in your pocket for the truly important things in your life!