Looking for auto refinancing? Well, you don’t need to wonder whether you’ll qualify with a lender for one anymore. You can now prequalify for auto refinance products before you apply with a lender.
Here’s a quick guide on why and where to get prequalified for auto refinance products.
Why Prequalify For Auto Refinancing?
Applying directly to a lender for any financing or refinancing has some consequences. The biggest single consequence is that your credit score will take a small hit.
When you apply with a lender, they typically perform a hard pull on your credit score. When they do so, the credit bureau they go to will note that you applied for a loan. The effects won’t be too significant right away. But if you want to apply to multiple lenders and compare offers, your credit score will take an unnecessary hit. There are better ways to compare the auto refinancing available to you.
Where Do You Prequalify For Auto Refinance Loans?
You can get prequalified for auto refinancing on online lending platforms. These are sites that allow you to see the auto refinance products that are available to you after prequalifying you.
When you sign up for an online lending platform, you will provide some basic information to the platform. They will then use this information to prequalify you with available lenders. At this point, you can compare refinancing options that you qualify for. But you don’t need to expose your credit report to hard pulls that have a small negative effect on your score.
Examples
LendingClub
LendingClub is an experienced but modern peer-to-peer lending platform. They will connect you to available auto refinance loans after prequalifying you. The loans they can match you with have low APRs of between 3.99% and 24.99%. That’s in part because they lack annoying and sneaky fees like origination fees.
To be able to find good auto refinancing on LendingClub, you should have a credit score of at least 600.
LendingTree
LendingTree is an old and comprehensive personal lending marketplace. They will match you with the most affordable auto refinance products available to you from their partners.
LendingTree’s partners’ APRs start as low as 3.09% for the most qualified borrowers. And it doesn’t take long to sign up for LendingTree and see what rates are available. They can also prequalify you for a longer list of vehicle types. Motorcycles, RVs, and boats can be refinanced on their trusted platform.
