CarFinance.com is a financial investment company that seeks to provide auto loan services to clients with high debts or unimpressive, fair-to-bad credit scores.
Unlike other auto-financing companies, CarFinance does not favor clients with excellent credit scores. Instead, clients with average scores between 525 and 650 are most likely to secure loans from the platform.
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How Does CarFinance Work?
Did you know that with CarFinance.com, you can get your auto loan pre-approved in half an hour? CarFinance.com’s main aim is to help people burdened with high-interest loans by providing refinancing services.
Similar to most auto financing companies, CarFinance.com, allows co-applications. Here are some of the minimum requirements when seeking auto loans from CarFinance.com:
- The vehicle age should not surpass eight years
- The maximum mileage for 60-month terms is 100,000 miles, while a maximum of 75,000 miles is accepted for the 72-month loan term.
- The loan terms vary from 36 to 72 months. However, you will not be able to obtain loans for exotic cars, super duty trucks, or motorcycles.
Carfinance.com services are not available in Nevada, Mississippi, Massachusetts, Hawaii, Oregon, or North Dakota.
How to Apply for Financing
Applying to CarFinance.com for a refinance loan is pretty straightforward. You will be required to register to the CarFinance.com portal and provide additional documents to be considered for a loan.
As you apply for a loan from CarFinance.com, you have to be extra careful and in genuine need of the loan since the company insists on a hard credit pull. A hard credit pull is likely to affect your credit score, albeit lightly.
If you have a good repayment history on your existing car loans, CarFinance.com will almost certainly grant your loan request. However, your debt-to-income ratio is also crucial in determining whether your loan application will be approved.
Once you complete the registration form online, you will receive assistance from one of the company’s staff members. They will let you know if you will be required to provide additional documentation for your loan application to be considered.
Types of Loans Available
CarFinance.com specifically deals with auto loan refinancing services, which allows you to pay off your existing car loan.
With a new loan obtained from CarFinance.com, you can lower monthly payments and subsequently reduce the overall costs of purchasing your car.
It is a convenient option for people looking to refinance their existing car loans. The company does not provide other services when it comes to auto loans, but they do finance both new and used vehicles as well as trucks intended for personal use.
They offer interest rates between 7.99% and 21.99%, which is on the high side compared to current rates for borrowers with good credit. Loan amounts vary between $7,500 and $45,000.
Is CarFinance.com Legit?
Yes, CarFinance.com is a legitimate car loan refinancing platform. Their service is a fast and simple way to refinance an existing car or finance a new one.
The company’s history and customer ratings verify that their business practices have proven them to be reliable.
Company History
CarFinance.com is an online auto lending platform that provides both refinance and purchase loans depending on the type of vehicle.
The company was officially opened in 2011 and has since established itself as one of the most competitive online financing platforms.
Currently, the primary loan type offered by CarFinance.com is auto loan refinancing. The company, however, aims to expand its services and provide additional loan packages by late 2020.
Alternatives
RefiJet – One of the most used and well known online refinance options, Refijet has streamlined the process of almost anyone refinancing their car.
AutoApprove.com – With an A+ from the BBB, AutoApprove is a top company for refinancing your auto loan.
AutoPay – One of the better services to find low interest rates, AutoPay.com offers a wide range of auto loans.
Pros
Provides Loans to Clients with Poor Credit
Most auto financing companies tend to favor or prioritize clients with positive scores in efforts to avoid incurring losses due to bad business. Clients with credit scores as low as 525 can receive refinancing loans despite their unattractive score.
Fast Approval Rates
Carfinance.com is among the few auto finance companies that pre-approve loans within half an hour. The short service time means that, provided you satisfy other basic requirements, you will stand a chance to obtain a loan quickly.
GAP Coverage
CarFinance.com provides GAP Coverage, which guarantees that you won’t get stuck in your loan repayments in the event of an accident. GAP coverage ensures that CarFinance will pay for the extra cost that is not covered by your insurance company.
Customer-Friendly Website
The CarFinance website has a simple but effective layout that allows for smooth user navigation. The site has an About Us button that helps shed more light on the company’s management and various achievements since formation.
Cons
Limited Range of Loan Packages
Although CarFinance.com has been vocal about its intention to expand its loan services, it still has a long way to go before diversifying auto loans.
The current loan options are refinancing (main loan service) and car purchase loans (offered on select items).
Limitations on Vehicles That Qualify
Your loan won’t be approved if your car is more than eight years old. The age limit seems a bit harsh, considering competing companies have age limits of at least ten years.
Not Available in All US States
You can’t access CarFinance’s services if you live in Nevada, Mississippi, Massachusetts, Hawaii, Oregon, or North Dakota.
CarFinance.com Review Final Thoughts
CarFinance.com is ideal if you have an existing car loan with a very high-interest rate you’d like to or need to refinance, but your credit score is not as impressive as you would like.
On the other hand, those with better scores, even in the mid-range, may find better terms from other providers. It’s best to shop around, be sure to ask if the application will require a hard inquiry on your credit report.
Also, keep in mind that while CarFinance.com services poor-credit borrowers, they still have loan requirements. Not all vehicles will qualify, and your income and debt still play a factor in whether you’ll be eligible.
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