In the fast-evolving world of auto financing, Caribou has emerged as a game-changer by connecting drivers with a network of lenders for auto loan refinancing. Founded to simplify the refinancing process, Caribou offers a seamless, 100% online application experience. This comprehensive review dives into Caribou’s offerings, highlighting the pros and cons, customer support, borrower requirements, fees, and the application process.
What Caribou Offers
Caribou specializes in auto loan refinancing for passenger vehicles, including cars, trucks, and SUVs. The company does not refinance motorcycles or commercial vehicles. Borrowers can benefit from competitive annual percentage rates (APRs) ranging from 5.99% to 28.55%, depending on several factors such as loan amount, loan-to-value (LTV) ratio, repayment term, borrower’s creditworthiness, income, and financial history.
Since Caribou collaborates with multiple lenders, the loan amounts, interest rates, and terms vary depending on the lender chosen. For the most qualified borrowers, the lowest APRs are based on a $45,000 loan with a 60-month repayment term. However, these offers are available only in certain unspecified states.
Apart from auto loan refinancing, Caribou also provides insurance services, including:
- Extended Vehicle Protection
- Total Loss Protection
- Key Replacement
It is important to note that Caribou’s services are unavailable in Massachusetts, Maryland, Mississippi, Nebraska, Nevada, Wisconsin, and West Virginia.
Pros and Cons of Caribou Auto Loans
Pros
- Prequalification Available with a Soft Credit Check: Potential borrowers can view available refinancing options without affecting their credit score.
- No Social Security Number Required Initially: Borrowers can get prequalified offers without providing their Social Security number.
- 100% Online Application Process: Borrowers can complete the entire process from the comfort of their homes.
Cons
- $499 Processing Fee: This fee may be passed on to the borrower or included in the refinanced loan.
- Limited Availability: Caribou’s services are not available in all states.
Customer Support
Caribou offers robust customer support to both current and prospective borrowers. The team of loan officers and insurance representatives is available via phone, email, or online chat Monday through Friday from 9 a.m. to 8 p.m. ET, and Saturday and Sunday from 9 a.m. to 4 p.m. ET. Borrowers can also schedule a 15-minute appointment with a loan officer to discuss Caribou’s offerings, complete an application, or check the status of an existing application.
Moreover, Caribou provides an online resource center and learning library, which includes general information about auto refinancing and insurance. The platform also features a glossary and a list of frequently asked questions (FAQs) to help borrowers navigate the application process smoothly.
Minimum Borrower Requirements
While Caribou does not publish specific minimum borrower requirements online, lending decisions and rates depend on general factors including:
- Loan Repayment Term
- Loan Amount
- Borrower’s Financial History and Income
Caribou’s underwriting requirements are not as transparent as some other lenders, but prospective borrowers can still see likely rates based on a soft credit check. This check does not impact the borrower’s credit score, and no Social Security number is required for the initial prequalification.
Caribou Auto Refinancing Fees
The total fees and borrowing costs vary depending on the lender and are reflected in the total APR. Caribou charges a $499 processing fee to lenders, which might be passed on to the borrower or included in the refinanced loan amount. It is crucial for borrowers to compare all available loan offers to determine lender-specific costs and make an informed decision.
How to Apply for a Caribou Auto Loan
Applying for auto refinancing through Caribou is straightforward and entirely online. Here’s a step-by-step guide:
- Use the Prequalification Wizard: Visit Caribou’s website and click “Get started” or “Check your rate for free!” from the homepage. Provide your personal information and follow the on-page prompts. If you have a co-borrower on your current auto loan, provide their information as well.
- Review Your Offers: Once you submit your information, Caribou forwards the details to its network of lenders. This step involves a soft credit check that does not impact your credit score but provides lenders with the necessary information to extend offers.
- Choose an Offer and Create an Account: If you want to proceed with one of the loan offers, create an account and complete a formal application. At this point, the lender will request a copy of your credit report, which involves a hard credit inquiry. This inquiry will be reflected in your profile and can impact your credit score. Choosing a loan offer also locks in your interest rate during the application review and underwriting process.
- Upload Documents: Caribou’s application process is entirely online, and you can upload the necessary documentation through the online platform. You may also send the documents via email or text using a document scanning app or smartphone camera.
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