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In this article, the Guides Auto team examines Caribou auto loans to help you decide if the company’s refinancing options are right for you. We discuss Caribou’s loan rates and application process, and discuss industry ratings and customer service reviews. Also compare with other lenders. with Best automatic refinancing rate.
About caribou
Founded year: 2016
headquarters: Washington DC
BBB rating: A+
Caribou (formerly MotoRefi) offers auto loan refinancing, car insurance and vehicle protection add-ons. For refinancing, potential borrowers apply online through her Caribou and are matched with loan offers. Caribou does not refinance vehicles in the following states:
- Massachusetts
- Maryland
- Mississippi
- Nebraska
- Nevada
- Wisconsin
- west virginia
Caribou’s auto loan refinancing is available for cars, trucks and SUVs, but the company has no refinancing options for motorcycles or commercial vehicles. To be eligible for refinancing, the vehicle must have less than 125,000 miles for petrol vehicles and 175,000 miles for diesel vehicles.
*Rate range as of November 11, 2022
Caribou only offers car refinancing loans, not new or used car loans. private party loan Also Lease Buyout LoanCaribou Auto Loan Refinancing Saves Customers, According to Company Website $111.16 monthly average About car payment.
Good credit can qualify you for a low interest rate of 2.83% per annum. This rate is based on a $45,000 loan with a 36-month repayment period. On the other hand, a lower credit score could have an APR closer to 36%. The minimum payment amount, loan amount, and loan term depend on the lender Caribou matches you with.
Factors Affecting Automatic Refinancing Rates
Companies like Caribou consider several factors before offering car refinancing. Below are some examples of what you can expect from the analysis.
credit score and credit history
Your credit score and credit report play a big role in determining your offer. Lenders consider you a responsible borrower if you have a good credit score. This helps keep interest rates low.
loan period
More time to pay off your car loan or reduce your monthly payments is nice, but it means more interest. You can get a lower interest rate by choosing a shorter loan term when refinancing. pay off a car loan early.
Income and debt-to-income ratio
Lenders are interested in your income. The Debt-to-Income (DTI) ratio tells lenders how much they are paying in debt each month compared to their total monthly income. The lower the DTI ratio, the lower the eligible interest rate.
Vehicle loan-to-value (LTV) ratio
The loan-to-value (LTV) ratio represents the percentage of the value of a vehicle that can be rented. For example, if you borrow $10,000 for a car worth $20,000, your LTV ratio is 50%. Higher LTV ratios can lead to higher interest rates.
Who is eligible for Caribou Auto Refinance?
There are several factors that determine whether a potential borrower is eligible for Caribou auto loan refinancing. One of these factors is the 580 FICO minimum requirement.® credit score. Additionally, age limits vary by lender. She above is ineligible if she resides in any of the seven states.
Caribou Application Flow
The Caribou Auto Loan Refinance application process is quick, easy, and completely online. Caribou makes it easy in three steps:
- Please check the rates.
- Select a loan offer.
- Complete a car loan refinance.
step 1
First, get prequalified by completing an online application. Share basic information including the following details:
- Name, date of birth, contact information
- Vehicle make and model, vehicle identification number or license plate
- current car loan payments
You only need to share your social security number if you choose to proceed with the loan application process. If you proceed with your application, Caribou or your lending partner will request a full credit report. This will be a hard credit pull. Affects your credit.
step 2
You can then view rates and offers from Caribou’s auto loan partners. Checking your rates doesn’t hurt your creditworthiness — Caribou performs a soft credit check at this stage, but it doesn’t affect your creditworthiness.
Step 2 gives you the opportunity to choose the right refinancing loan and add Caribou’s other products to protect the value of your vehicle. Along the way, you’ll also benefit from the company’s acclaimed customer support.
step 3
The final step is to submit some more information and sign everything online. Caribou can also help you skip a trip to the DMV by handling title transfers.
Required documents
During the auto refinancing process, you will be required to submit certain documents about yourself and your vehicle.
In general, you will need the following for your application:
- Driver’s license
- vehicle registration
- proof of car insurance
- proof of mileage
- proof of residence
- proof of income
- Other lender-specific documents such as phone bills and mortgage statements
There is no application fee, but Caribou charges lenders a $399 processing fee to cover the cost of the service. Lenders can include this fee (and other fees) in the amount of the refinancing loan.
Other Caribou Products to Consider
Here are some other caribou products that can protect the life and value of your vehicle.
car insurance
Talk to Caribou about switching to another car insurance company. Caribou connects car owners with domestic carriers who can provide affordable quotes.
extended protection
Caribou extended vehicle protection helps cover unexpected car expenses. If you need to pay for repairs that are not covered by insurance, this cover will cover the costs.
Key replacement coverage
Key fob replacement typically costs $200 to $400, according to the Kelley Blue Book. In many cases, Caribou key replacement covers the cost of a new key with no deductible if your key is misplaced or damaged.
total loss protection
Having this insurance can save you money in the event of a car accident or theft. A guaranteed asset protection (or “gap”) plan pays for the difference between your car loan balance and the actual cash value of your vehicle, giving you peace of mind in the event of a total loss.
beauty care
Caribou’s cosmetic care package can keep your car’s exterior in good condition by covering windshields, rims, wheels, small dents and more.
Caribou review
Caribou has been rated highly by BBB customers with nearly 4.9 out of 5.0 based on over 900 reviews. Not only is it BBB accredited, it is also rated A+ by the organization. Caribou has only handled 17 of her BBB complaints in the last three years.
Caribou is also highly rated and profitable by Trustpilot customers. 4.5 out of 5 stars Based on over 500 reviews.
Positive caribou reviews
In general, customers who rate Caribou highly are satisfied with its customer service. They also cite a quick and easy process, low fees, and a stress-free experience.Many reviewers on both BBB and Trustpilot thank the representatives by name for helping them out.
Negative Caribou Review
Negative Caribou reviews have come from customers citing issues such as the slow and frustrating process during underwriting, negative impact on credit reports, poor customer service and lack of response to some inquiries. Some customers also said they weren’t told about the lender’s fees, and at least one customer said the monthly savings from refinancing were offset by expenses.
Our team reached out to Caribou for comment on the negative reviews and BBB complaints, but did not receive a response.
Caribou Auto Loans: Conclusion
This relatively new financial services technology company has a high customer satisfaction rating, earning high ratings on both BBB and Trustpilot, as well as an award for Best Customer Service. Caribou does not charge application fees or prepayment penalties for auto loan refinancing. However, there are high processing fees that lenders may choose to pass on to you.
Automatic refinancing recommendations
Caribou’s overall score of 8.0 is partly due to its interest rates and high-scoring customer experience, but it may not be the right loan option for you. Find and compare rates before proceeding with any lender. Consider Auto Approve and myAutoloan before making your final choice.
Auto-Approve: Top Contender for Refinancing
Auto Approve has an overall rating of 8.9 out of 10.0. The company’s auto refinancing loans range from $5,000 to $85,000 with no application fees or prepayment penalties. Rates from lenders Auto Approve starts at 2.94% and there is no minimum credit score requirement for the company.
keep reading: Automatic approval of reviews
MyAutoloan: Best Low Interest Option
myAutoloan received the highest score in our review with an overall rating of 9.2 stars. best car loan provider. Online lending markets allow consumers to compare refinancing offers that can reduce their monthly car loan payments. Applicants with a FICO credit score of 575 or higher are eligible for refinancing loans of $5,000 or more. Automatic refinancing rates from financial institutions in myAutoloan’s network start at 2.49%.
keep reading: myAutoloan review
Caribou Auto Loans: Frequently Asked Questions
our methodology
Consumers trust us to provide objective and accurate information, which is why we created a comprehensive rating system to develop a ranking of the best auto loan companies. We have collected data on dozens of loan providers to rank companies on various ranking factors. The final result is an overall rating for each provider, with the company with the most points at the top of the list.
The factors that our rating takes into account are:
- Reputation (30% of total score): Our research team considered the ratings of industry experts and the years in business of each lender in giving this score.
- Availability (20% of total score): Companies that cover a range of situations are more likely to meet borrower needs.
- Loan details (15% of total score): To determine this score, we considered the loan types, terms, and loan amounts available from each lender.
- rate (25% of total score): Auto loan providers with low annual interest rates receive the highest scores in this category. Available discounts were also taken into consideration.
- Customer Experience (10% of total score): This score is based on customer satisfaction and transparency. We also looked at the responsiveness and helpfulness of each lender’s customer service team.
*Data is at the time of publication.
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