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You know you can refinance your house to save money on your monthly mortgage payment — but a surprising amount of people don’t realize you can refinance your car, too.
It’s not a money-saving tactic people talk a lot about, but it could save you a ton of money. A website called Upstart is helping people save an average of $1,025 a year on their car payments. That’s about $4,800 back in their pockets over the lifetime of their loan.
Could you use nearly $5,000 back in your bank account? It takes less than six minutes to check your rate.
How You Could Knock Your Car Payment Down
Upstart is an online lending platform that makes it easier than ever to refinance your auto loan. It comes with no origination fees and has a minimum FICO score of only 510, plus its machine learning system is helping more people take advantage of refinancing.
Humans are inherently biased, and credit scores only tell part of someone’s story. But Upstart’s artificial intelligence assesses true risk from a number of factors to approve more applicants than other lending models.
Most of Upstart’s auto refinance loans are fully automated, too, with flexible requirements and even their own proprietary underwriting software. And with an APR range of 2.20% to 29.99%,1 Upstart has helped its customers save millions of dollars on their car payments.2
How to Get Started
Upstart approves more people for auto refinance loans, with rates an average of 10% lower than other lenders. They’ve saved people more than $20 million on their car loans in the past year alone.
Getting started is easy. It takes just minutes to check your rate. You don’t even need to enter your car’s VIN. Plus, there are no spammy phone calls.
If you have a car payment, check out your rate and see how much money you could save on your car loan.
Kari Faber is a staff writer at The Penny Hoarder
1 The full range of available rates varies by state. The average 5-year loan offered on Upstart will have an APR of 9.91% and 60 monthly payments of $426 per $20,000 borrowed. For example, the total cost of a $20,000 loan would be $25,540. APR is calculated based on 5-year rates offered in the last 1 month. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
2 This information is estimated based on all consumers who were approved for an auto loan through Upstart and accepted their final terms. As of 1/1/2022 the savings for all borrowers amount to $28.2 million. To evaluate savings on a loan you are considering refinancing, it is important to compare your APR and remaining term from your existing automotive loan to the APR and term offered through Upstart
Car refinance loans not available in IA, MD, NV, or WV. Car refinance loans in IL and MO are originated by Cross River Bank or Midwest BankCentre. Car refinance loans in CO, KS, and TX are originated by Cross River Bank or Rising Bank, Member FDIC. Car refinance loans in FL, GA, and AL are originated by Cross River Bank or Drummond Bank, Member FDIC. All other car refinance loans are originated by Cross River Bank, Member FDIC.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.