Car loans have become much more reasonable in the past few years, so if you’re stuck with a bad rate from an old loan, it might be time to refinance.
But going to a traditional bank isn’t always the best option. And it only gives you one point of reference.
Enter RateGenius – a loan broker that connects you with over a hundred different lenders to find the best possible refinance rate for you.
In this article, I’ll review what RateGenius is, how it works, and some of the pros and cons so you can determine if its a viable option for you or not.
What is RateGenius?
RateGenius is a brokerage for vehicle refinance loans. The company helps you to find a suitable loan from its own network of lending partners.
RateGenius is headquartered in Austin, Texas where it was founded in 1999. Since then, they’ve provided brokerage services to help borrowers find the right lender.
150 lenders
The company uses technology to help customers find the best rates from its network of 150 lending institutions located across the US. They strive to present the best options to its customers and help them to save money on their loans.
RateGenius collaborates with community and national lending institutions and credit unions to provide the best quotes to customers.
B+ BBB rating
The company has a B+ rating on the Better Business Bureau. One thing you’ll note in their reviews is that they provide quick responses to all customer complaints. This shows that RateGenius gives importance to customers and moves quickly to resolve their issues.
They also have a 4.6/5.0 rating from its 1,900+ Google reviews and 4.5/5.0 rating on its 340+ Facebook reviews.
Flexibile loan terms
RateGenius offers customers refinance options with the same term as the loan. Hence, customers can pay off their loans at the same time. Since the term is equal and the rate is lower, borrowers pay less total interest.
Easy application
Customers can use the web portal of RateGenius to get free quotes from scores of lenders. The online application process is quick, simple, and hassle-free.
RateGenius claims that its customers can save thousands of dollars over the life of the vehicle loan. Hence, customers can expect good value for their money.
How does RateGenius work?
It’s easy to get the best quotes through RateGenius. The company has simplified the process for the ease and convenience of customers.
Customers have to go through the easy three-step process for refinancing options. There is also a live chat option to help you out if you need further information.
You can submit your application online or via phone by dialing 866-728-3436 (toll-free). It will take only a few minutes.
During application, you must supply the following information:
- Loan information (your lender and the monthly payment)
- Vehicle information (vehicle model, mileage, VIN number)
- Contact information (email, phone number, and address)
You must also provide copies of the following documentation:
- Driver’s license
- Residence permit or proof of citizenship
- Proof of income
Once you have completed the process, RateGenius will contact its network of loan providers for the lowest interest and best conditions.
If your application is approved, you’ll receive an acknowledgment through email, phone, and text.
You can review the loan documents online at the secure portal or have them delivered to your home through UPS.
If you accept, you can sign the paperwork and send it to RateGenius through a pre-paid postage envelope. You can even send the papers electronically. RateGenius will immediately repay your loan and transfer the title of the outstanding amount to your new lender.
RateGenius does not charge application fees. However, individual lenders may charge an application fee. This amount will then be included in the loan.
Features of RateGenius
Some key facts about RateGenius vehicle refinance loans:
| APR | 3.5 – 25.9% |
| Minimum loan | $10,000 |
| Maximum loan | $90,000 |
| Minimum credit score | 550 |
| Minimum monthly income | $2,000 |
| Is a hard credit check required? | Yes |
| Maximum vehicle age | 10 years |
| Maximum mileage | 150,000 miles |
| Nationwide availability | All states |
APR
From the above table, borrowers with an excellent credit rating can get affordable credit. So, you can save a lot in financing costs if your credit rating is stellar.
The APR increases sharply for lower credit ratings. This is in line with the standard practice since borrowers with lower credit scores represent a higher risk.
Flexible requirements for older vehicles
The company also has very flexible requirements for older vehicles. It allows refinancing of vehicles that are not over 10 years old and driven under 150,000 miles.
Calculate your monthly payments
RateGenius also provides an easy-to-use online tool to calculate your monthly payments. To use this loan calculator, you must specify:
- Loan amount
- Interest rate
- Loan term
- Starting date
The loan calculator will then show how much you must pay each month.
Refinances SUVs and trucks
RateGenius doesn’t just refinance auto loans, but it also refinances SUVs and trucks. This is a welcome option because trucks are more likely to be refinanced than any other vehicle type.
An exciting trend that has appeared over the years and seems to grow is that pickup truck drivers comprise the majority of refinancing customers. They account for about 60 percent of vehicle loan refinance applicants.
Pickup truck owners also receive the most significant benefits. They save the most money monthly, even more than car owners.
So if you own a pickup truck, then you’re in luck because RateGenius will refinance your vehicle. There are several refinance firms that limit their refinance options to cars only.
Lease buyouts
RateGenius also offers loans for lease buyouts. The company informs customers about conditions on an excellent lease buyout.
RateGenius encourages customers to accept a lease buyout if the value is less than the market value of the vehicle. They also urge customers to verify the vehicle’s performance and overall condition before finalizing a lease buyout. If you go ahead with the lease buyout, you can depend on RateGenius to provide low-interest loans.
You can opt for insurance coverage
RateGenius also works with an affiliate that provides insurance coverage. After your application is approved, the affiliate may contact you and provide insurance offers. They also offer vehicle service contracts and gap insurance.
Customer service
RateGenius also provides excellent customer service through email and live chat. Their friendly and courteous customer service representatives explain and simplify all terms and conditions for customers.
Pros & cons
Pros
- Large number of lenders — RateGenius has an extensive network of 150 lenders nationwide.
- You can save…a lot — RateGenius can provide substantial savings in interest.
- Easy application — The application process is quick, convenient and simple.
- Excellent customer support — RateGenius has great customer service review.
- Older vehicles accepted — Generous conditions for the maximum vehicle age (10 years) and mileage (150,000 miles).
Cons
- Low credit scores need not apply — People with a credit rating below 550 are not eligible.
- Low earners also need not apply — Individuals whose monthly household income is less than $2,000 per month cannot apply.
- No commercial vehicles accepted — Does not refinance commercial vehicles and company vehicles without company authorization.
Who should use RateGenius?
RateGenius is for individuals who:
- Have a good credit score. RateGenius’ customers have an average credit rating of 690. The minimum acceptable credit score is 550.
- Don’t mind a hard credit pull. RateGenius’ customers are typically serious shoppers for vehicle refinance loans. Therefore, they may perform a hard credit check even though it reduces their credit rating slightly. Lenders usually perform hard credit pulls as part of a loan application.
- Need help in finding a lender who offers the best terms. Many lenders offer loans on different terms. Some of these lenders may extend credit on the terms that favor the circumstances of the borrower. A reliable broker can help borrowers to find such lenders. This will allow them to make the best possible choice.
Who should not use RateGenius?
RateGenius is not suitable for individuals who:
- Have a credit score below 550.
- Have an income below 2,000 per month.
- Have a vehicle older than ten years or a mileage above 100,000 miles.
- Don’t want to perform hard credit check.
RateGenius vs. competitors
Before comparing RateGenius to competitors, it’s imperative to understand a significant difference:
Some of these competitors provide refinance loans directly. RateGenius looks around for the best quotes from their network of lending partners.
RateGenius has a better minimum credit score requirement
RateGenius has an excellent minimum credit rating requirement as compared to most competitors. But if your credit rating is below 550, then you must look elsewhere.
Possible options include:
LendingClub charges no prepayment penalty, offers a nice range of loan amounts, and offers a 15-day grace period for missed payments. Best of all, the minimum credit score to apply is just 600.
With above average rates and high origination fees, LendingClub is best for borrowers with fair credit who may otherwise have limited borrowing options.
- No prepayment penalty
- Range of loan amounts
- 15-day grace period on missed payments
- Restrictive loan terms
- Higher rates than some competitors
- Steep origination fee on loans
Some competitors have lower income requirements
Several competitors have a lower monthly income requirement than RateGenius. Some even have no minimum requirements, like CarFinance.com.
However, the minimum requirement for RateGenius is reasonable. This is in the best interests of customers.
It’s difficult to repay loans with such a meager income and the high costs of living as it can minimize the risk of default, which can hurt customers.
The vehicle requirement is better with RateGenius
At 10 years, the maximum vehicle age condition is also much better than most of the market. However, if you want to refinance for a vehicle older than 10 years, then you should try Consumers Credit Union. These firms have no restrictions on the vehicle age.
Similarly, the maximum mileage restriction of 150,000 is more generous than the market average.
Summary
RateGenius is a reputable firm that borrowers can depend upon for refinancing options that can save them interest over the long run.
The company has distinguished itself with several glowing reviews on Google, Facebook, Credit Karma, Consumers Advocate, Better Business Bureau, and other leading organizations.
They offer refinancing options through a network of lending institutions. So you can get plenty of great quotes if your application is approved.
Other firms offer refinancing loans directly. So you’ll have access to limited choices with these firms.
But since RateGenius is a brokerage, so you can get the best quotes from top lenders. RateGenius may actually be a better option than firms that extend credit directly.
Since the application process is easy and free, consider applying to RateGenius for vehicle refinance. Once you receive your quotes, you can compare their interest rates with your current loan. You probably can save a substantial amount on your monthly payments.
Read more:
- How Much Should You Spend On A Car?
- How To Drive A Nicer Car Than You Thought Possible