If you have an auto loan, you might have had difficulties paying your monthly balance. With this, you might be looking for options to do so.
This is where refinancing comes in handy.
Today, we’ll discuss one of the famous auto refinancing options you have, which is OpenRoad Lending.
Continue reading this article if you want to learn more about OpenRoad Lending. We’ll also help you find out if it’s the best option for you.
What is OpenRoad Lending?
OpenRoad Lending is an auto refinancing company founded in 2009 that allows you to lower your auto loan payments.
Through refinancing, you can pay an existing loan by getting a new one. Typically, refinancing loans have competitive prices and are usually offered with low-interest rates.
As a result, you pay low monthly payments, allowing you to save money.
Going back, OpenRoad Lending provides auto refinancing to people who meet the minimum requirements. For you who have a reasonably good credit score, OpenRoad may be one of your best options.
Additionally, OpenRoad works with banks and credit unions that might perform a hard credit check in the underwriting process. So, keep in mind that your credit score will make a huge difference.
If you’re looking for other car-related services, like car buying and other related products, OpenRoad might be a good fit.
OpenRoad Eligibility Requirements
Like other lending companies, OpenRoad also has eligibility requirements that you have to meet to take out a loan. If you’re planning to borrow from OpenRoad, make sure that you have the following:
- An annual income of at least $18,000, excluding income from self-employment or taxi service
- Loan payoff amount of $7,500 – $100,000
- An 8-year-old or newer car that has a mileage of less than 140,000
- A 125% maximum loan-to-value ratio
Aside from these, you should know that OpenRoad isn’t available in some states. These are Alaska, Hawaii, Mississippi, Nevada, New Hampshire, North and South Dakota, Minnesota, and Wisconsin.
If you live in any of these states, it’s best to look for other refinancing options.
Also, OpenRoad only allows refinancing for specific makes and types of cars. The following are ineligible for OpenRoad’s auto refinancing service:
- Daewoos
- Isuzus
- Smart Cars
- Commercial and recreational vehicles
- Motorcycles
- Large trucks (those with a payload capacity of over ¾)
- Any obsolete vehicle (those that are presently no longer manufactured)
Other OpenRoad Services
As we’ve mentioned, OpenRoad offers other services besides auto refinancing. These services include:
- Guaranteed Asset Protection (GAP)
Guaranteed asset protection is a type of insurance that provides coverage for when your vehicle is declared a total loss. This could be due to theft, fire, or an accident.
If you have auto insurance, but the coverage is less than your loan, GAP insurance will pay for your remaining balance. This means that you wouldn’t have to pay for anything.
- Auto and Homeowners Insurance
If you don’t have auto or homeowners insurance yet, you can get one from OpenRoad through a partnership with Answer Financial.
- Extended Service Contracts
An extended service contract is also known as an extended warranty. This allows you to get coverage for car repair costs and other maintenance ones, even when your car’s warranty has already expired.
- Repair Services and Deductible Reimbursement
OpenRoad offers a paintless dent repair service that helps you protect your car against dents. Additionally, OpenRoad also offers a deductible reimbursement of at most $500.
- Credit Repair
Another partnership OpenRoad has is with Lexington Law. With this service, you can get free credit consultation from Lexington.
- Car Buying Service
If you’re planning to buy a car, you might want to consider OpenRoad. OpenRoad has a free car buying service that helps you compare car prices.
With their car buying service, you’ll be able to see how much car owners paid for their cars. Also, you can use this service before talking to a car dealer to get the best rates possible.
OpenRoad Pros and Cons
To help you decide if an OpenRoad auto refinancing is for you, we’ll be listing some of OpenRoad’s pros and cons.
Pros of OpenRoad Lending
- Your application can get approved within a few minutes.
If you need refinancing as soon as possible, OpenRoad is a good option. Application is also easy and efficient.
Additionally, OpenRoad allows co-borrowing, so you can choose to add a co-borrower if you’d like.
- OpenRoad is rated A+ by the BBB.
Since its establishment in 2009, OpenRoad’s reputation has been beaming. They’re also rated A+ by the Better Business Bureau, which is the highest BBB rating.
- OpenRoad offers other services, including a free car buying service.
As we’ve said, OpenRoad has many other services that you can avail of. Aside from their refinancing, you can also get other ones, like GAP insurance and credit repair.
Cons of OpenRoad Lending
- The company has a minimum income requirement of at least $18,000.
Like we’ve mentioned earlier, OpenRoad requires an income of at least $18,000 for someone to be eligible.
This is a disadvantage because some lending companies don’t have income requirements, while some have a lower one.
- You can only get a loan if your car is eight years old or newer.
If your car is older than eight years, you wouldn’t be able to get an OpenRoad refinancing. This is generally less than other companies’ requirements.
Also, keep in mind that OpenRoad has ineligible cars for refinancing.
- Your credit score is a significant factor.
As we’ve stated earlier, your refinancing will depend on various factors, including your credit score. This means that your financial terms may not be excellent if your credit is on the bad side of the scale.
How to Apply for an OpenRoad Loan
Applying for an OpenRoad refinancing is relatively easy. They also don’t charge an application fee, and you’re not obliged to accept an OpenRoad offer.
You can also make the application online, but make sure you have the following information before proceeding. Also, keep in mind that late payments depend on who your lender is.
You’re going to need the following when applying for a refinancing:
- Personal information: Name, Social Security number, birthday
- Contact details: Home address (including the length of residency), email address,
- Monthly costs: Monthly mortgage or rent payment
- Income details: Employer, job title, monthly income, employment length, and other income information you have
- Vehicle information: Car year, make, and model; car’s current mileage, Vehicle Identification Number, your existing lienholder
If you’re planning to apply with a co-borrower, you’ll also have to prepare these details about them.
Once you’ve sent your application, OpenRoad will run a soft inquiry on your credit. This wouldn’t affect your credit score.
Application Process
Now, after finishing your online application using the information above, you’re going to do the following steps:
- After your online application, you’re going to get your results after a few minutes. If your application gets approved, OpenRoad will send you a loan offer that’s good for a limited time. Upon receipt, you have to provide OpenRoad with your proof of income and the details of the loan you’re refinancing. OpenRoad is also going to ask you to sign a loan security agreement.
- Once you’ve completed these documents, the next thing to do is to fax or mail them overnight to OpenRoad.
- If you’ve provided complete documents, OpenRoad will pay your lender within 7 to 10 business days.
Afterward, OpenRoad will send you a welcome letter saying that your refinancing has been done.
Keep in mind that what you’ll pay to OpenRoad depends on how much your auto loan was. In some cases, OpenRoad might finance more or less than what your car is worth in cash.
Remember that it’s also dependent on your car’s depreciation and not a result of your application and refinancing processes.
Auto Loan Rates
Like we’ve said, the rates you get will highly depend on your credit score.
If your credit score is terrible, your monthly rates will most likely be high. As a result, you’ll probably pay more interest.
Make sure that you know your credit score so you can check the rates you can qualify for.
OpenRoad Alternatives
Now, if you’re not sure that OpenRoad Lending is for you, it’s time to look for your other options. Remember that shopping around before deciding which to choose is always the best way to find what suits you.
There are many alternatives available in the market, but here are what you can consider.
- Capital One Auto: If you’d like to qualify for a loan without a hard credit inquiry, Capital One Auto is a good option.
- Autopay: Autopay is an excellent option if you’d like to see refinancing rates and compare them from multiple lenders using one application.
- Innovative Funding Services: If you’re worried about repayment terms, IFS is a good option. They offer loans with repayment terms ranging from 12 to 60 months.
Final Words
Refinancing an auto loan is a great way to pay for a loan you can’t afford, and OpenRoad Lending can help you.
Just keep in mind that refinancing highly depends on your credit score. Also, don’t forget that you should always shop around first to see what’s best for you.
Did you find this article helpful? Read more of our auto-related articles below:
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