RateGenius Auto Refinance Review
Buying a car is a big commitment, and unless you already have enough cash, you need finance, be that a lease or a loan. As long as you don't miss any payments, a loan is a great way to buy a car. But loans can come with high interest rates and monthly payments that are hard on your budget, which makes buying a car stressful and affects how much money you can spend. The good news is that you can reduce the strain on your wallet caused by a loan.
Auto-loan refinancing can put money back in your pocket by reducing your loan's annual percentage rate (APR). It's possible to get a lower APR by borrowing from a big bank or another lender, but it's more likely if you have an expert to guide you through the application and look out for your interests. Based in Austin, Texas, RateGenius is an online auto-loan refinance company that can help you refinance your current loan or buy out the lease on your car. RateGenius aims to get you a better APR, putting money back in your pocket!
Table of contents
- How RateGenius works
- How much you can borrow from RateGenius
- What is the APR with RateGenius?
- Does RateGenius charge fees?
- Will RateGenius affect my credit score?
- Pros and cons
How RateGenius works
RateGenius is not a lender; it’s an intermediary connecting you to a lender you might not otherwise be able to access. RateGenius searches many lenders for every application, from small credit unions to banks. RateGenius and its partner Lendingtree are online, so all you need is an internet connection and your personal information to find out if you qualify. Give them your phone number and some information about your vehicle, such as its VIN, make and model, and you’re well on your way to finding a lender.
If you’re not sure if RateGenius is for you, answer these questions:
- Has your credit score increased since purchasing your vehicle?
- Is your current APR more than 6%?
- Have you had financial problems?
If you answered "yes" to any of these, then auto-loan refinancing may be right for you. RateGenius is helpful, fast and has few requirements before connecting you with a lender.
To work with RateGenius, you must meet the following requirements:
- Be at least 18 years old
- Have a credit score of at least 550
- Earn an income of at least $2,000 a month
- Live in the United States
- Own a vehicle no older than 12 years
- Have a vehicle with mileage less than 120,000 miles
If this sounds like you, applying is as simple as filling in a form on the RateGenius website. Rest assured that your personal information will be safe throughout the application and lending process. Third parties do not retain your data unless you select them as your lender.
How much you can borrow from RateGenius
RateGenius auto refinancing is possible for almost all vehicles with a balance between $10,250 to $55,000. You can get a loan for more than one vehicle.
What is the APR with RateGenius?
RateGenius connects you with lenders to secure the best refinance for your budget. The lender will determine an APR based on your credit score. You can expect an APR from 2.99% to 9.39%. On average, RateGenius users saved $96 after refinancing.
For example, if you took out a $20,000 loan at 10%, your interest payments would be $5,550. However, RateGenius could help you get an APR of 5%, reducing your interest payments to $2,645!
Does RateGenius charge fees?
RateGenius is an intermediary that connects people to lenders with the lowest rates. Although RateGenius doesn’t charge a fee, the lender may. Reading through all documents to identify any fees is essential before selecting your lender.
Will RateGenius affect my credit score?
Yes, when you use RateGenius, it will record a hard inquiry on your credit report, but a credit check is necessary to connect you with the best lenders. A hard inquiry can affect your credit score, so only apply if you need a loan. You’re more likely to secure a low APR if you have a good credit rating. Lenders consider a credit score of 720 or higher good, and if you’re not sure what yours is, contact one of the three credit reporting companies, such as Experian.
RateGenius auto refinance pros and cons
As with any service, RateGenius has some pros and cons.
Advantages
- Vehicle requirements are standard and not outside of the expected wear and tear on a car, which aligns with other auto-financing businesses.
- RateGenius has more than 150 lenders nationwide.
- You are not required to accept a loan offer.
- Applying is simple and quick.
- Loan terms range from 24 to 87 months.
- RateGenius has an affiliated insurance broker that provides gap insurance, which protects you if you write your car off, leaving you with a loan amount greater than the value of your car.
Disadvantages
- Using RateGenius results in a hard inquiry on your credit score.
- The company’s approval rate might go as low as credit scores of 550 but favors applicants with 690 or higher.
- You need to earn at least $2,000 a month.
- Approval can take up to 48 hours.
- You are likely to hear from its affiliated insurance broker after completing your refinancing.
Is RateGenius the best option for you?
If you’re interested in paying off your loan quickly to save money, RateGenius is likely what you’ve been looking for. Overall, it’s a reliable option for serious applicants with a steady income and an average or better credit score.
Get started today and put money back in your pocket for the truly important things in life!
Update: This article has been updated to reflect current RateGenius rates and policies.
Disclaimer: This story was originally published on October 21, 2019, on BetterCreditBlog.org. To find the most relevant information concerning RateGenius Auto Refinance, please visit their website: https://www.rategenius.com/.