A Car Loan Service Could Help You Get Better Refinance Car Loan
Auto loan services are provided by companies who have the ability to partner with several credible lenders including banks, credit unions and financial institutions – to provide competitive rates and loan terms for individuals with a range of credit scores. The goal is to provide customers with the best rates available to them while allowing lenders to compete for the business.
Why would anyone need a car loan service? We’re glad you asked. Read Ryan’s story. We bet you’ll find the answer there.
Ryan’s Refinance Nightmare
Prior to buying his car, Ryan went through a divorce that resulted in filing for bankruptcy. Because of the bankruptcy on his credit report, Ryan got stuck with a high-interest rate and monthly payment when he purchased the Chrysler.
Ryan has been at the same job for three years and has worked in the manufacturing industry on-and-off as an entry-level laborer for six years. He has a family to support while rebuilding his credit and getting his finances back on track.
Ryan doesn’t know where to begin looking for better auto refinance rates. And he doesn’t know…
It matters where you start.
All banks and credit unions have their own lending parameters and focus on certain financial profiles. Often times, it is even difficult for finance professionals to know what a bank specializes in, so finding the right lender for his situation will be very challenging for Ryan.
Like most, Ryan starts at his local credit union. The main goal is to lower his monthly payment.
With a credit score of 620, Ryan walks into Lender A, applies for a loan to refinance his car, and is turned down because the credit union does not work with customers with credit scores below 680. He is very discouraged and is anxious about having the inquiry on his credit report with nothing to show for it.
But he’s not ready to give up. He is sure refinancing his car and getting a better rate is the right thing to do.
Next, Ryan goes to Lender B. He learns he is able to refinance his car, but the refinance rate he is offered is not what he hoped. He wonders if it is the best rate available.
It is true Lender B finances auto loans for customers with credit scores between 600 and 850+ – that’s Ryan – but what Ryan doesn’t understand is that its rates are only very competitive above 720.
Though he doesn’t know for sure yet, his suspicions are correct. He probably won’t save as much with Lender B as he could somewhere else. But where should he look next?
Ryan’s best bet would be to inquire about a loan with Lenders C or D. Each of these lenders are very competitive for customers with a 620 credit score. He’ll get the best deal at one of these places, but how is he supposed to know that?
Ryan is paralyzed.
That’s two inquiries on his credit without results. Months pass.
Finally, a co-worker tells Ryan about an auto loan service company that specializes in matching people just like him with better car loans. So Ryan looks into it. The loan service company requires one application be completed to gather his information, his credit will be pulled, but with this information, then an expert will be able to match him with the best refinance rates available from many different lenders.
Lenders C & D
So Ryan goes for it. He completes an online application, holds his breath as the loan service company pulls his credit again – it has to be done – and waits as they begin the process of matching him with the best refinance car loan available to him. Sure enough, Lenders C and D are both able to offer Ryan better refinance rates.
Ryan moves forward with Lender D, and before he knows it, he has refinanced his car.
Ryan wonders why he didn’t start with a loan service company to begin with. In the end, it saved him a lot of time and stress to have a professional handle it, and lowered his monthly payment.
Is this you?
IFS is an auto loan service company. We partner with 15+ credible lenders to cover the full credit spectrum and allow banks and credit unions to compete for customers across a wide range of personal financial profiles. Apply with IFS to refinance your car, and we’ll do the work for you. Or try our auto refinance calculator to see how much you may be able to save.