Capital One’s “What’s In Your Wallet” TV commercials are eye-catching. Ask viewers to tell you what’s in your wallet. Capital One offers credit cards, auto loans and banking services. Auto Navigator is another service offered by Capital One that allows car buyers to browse cars, find financing, and get prequalified for loans, all without affecting their credit score.
Refinancing your Capital One auto loan can help you save an average of $118 per monthly and up to $1416* per year. These tips may be helpful in getting the process started.
1. Shopping Around
Capital One Auto Finance’s app offers a unique digital experience that allows users to shop, check monthly payment options and prequalify without affecting credit. There are no minimum income or dealership requirements. However, not everyone will qualify. For example, PNC Bank offers a more convenient online shopping tool with financing that does not limit the price of vehicles.
It’s a great idea to shop around for the best deal before buying a car. This applies to both new and used cars. This can be done using online tools, free apps and visiting dealerships, banks or credit unions to get rates and conditions specific to the car you are interested in.
Ask your lender about reduced rates of interest or other incentives. You can also show them your payment plan, or that you’ve had a long-standing relationship with them. You can convince them by showing them how you are a good borrower. They may even lower the interest rate on a credit card or auto loan.
2. Refinance
Capital One, a leading auto lender with competitive rates of interest and flexible terms for lending at competitive rates, is well-known. Capital One also offers auto refinancing to existing customers who want to change their current loan agreements into loans that have more affordable terms.
You may be eligible for better refinancing terms if your finances have improved since you took out the auto loan. This could include lower rates, longer terms and reduced monthly payments. The extra cash you receive can then be used to pay other obligations or to give you more discretionary income.
Capital One only accepts applicants who have strong credit ratings and a sufficient amount of income. This makes their prequalification tool ineffective when attempting to determine what rates might be applicable. Their online application process is also simple and straightforward for prospective borrowers.
It’s important to compare lenders when looking for the best auto loan. Some have stricter eligibility criteria, such as minimum credit scores and debt-to income ratios. Be aware of any existing prepayment penalties before considering the refinancing option with a different lender.
3. Protect Your Home at Affordable Prices
Capital One offers its customers the opportunity to purchase affordable insurances to go along with their auto loans, including roadside assistance, vehicle replacement, and peace-of-mind. The extras may include vehicle replacement or roadside coverage, such as assistance in the event of a car accident or theft. This could save you money on repairs. The added protection provided by these types of coverages often makes up for their relatively low cost.
Capital One Auto Navigator simplifies the car loan process with its one stop loan service. The prequalification tool allows borrowers compare monthly payments and interest rates without affecting their credit score. Its online shopping feature allows borrowers find vehicles and create loan terms even before visiting a dealer. They can also speed up car buying by using their partner network.
Capital One doesn’t specify a credit score minimum requirement. Instead, it requires that the borrower has enough money each month to pay for both their loan and monthly expenses. Capital One may charge a higher origination fee for those who have less than perfect credit or those who finance an older vehicle with high mileage. Most lenders view these individuals as more risky. In such cases, it is best to negotiate a lower interest rate.
4. You can transfer your balance
Balance transfers can be a stress-free and effective way to reduce debt and anxiety, no matter what your situation. Capital One offers attractive deals that can lower interest rates significantly.
Logging in to your account and choosing “Transfer a Balance”, from the menu dropdown, is all you need to do. Enter the amounts that you want to transfer, as well as account numbers, names and addresses of both cards. This process will take between three and fourteen days to complete once submitted. Continue to make payments until the balance of both cards is zero.
Balance transfers can cause a slight drop in your credit rating, as every hard inquiry will add another inquiry to the report. Balance transfer cards used to repay debts in the initial period can actually increase your score over time. This is because they lengthen your credit history while decreasing credit usage. Calculate your monthly payments to see if you can afford it before transferring debt.
