Take control of your car payments through Caribou (2024)

FAQs

Does Caribou require proof of income? ›

Does Caribou require proof of income? Yes, Caribou requires proof of income when you complete an application for auto loan refinancing.

The rates you can get through Caribou are fixed, so they won't change for the life of the loan. Regardless of your APR, you will have to pay a one-time charge of $399 for Caribou to process documents and retitle your vehicle. There are no fees for paying your new loan off early.

Auto Approve may be a good fit for those who:

Want to compare terms and rates: Pre-qualification with a soft credit check will not affect an applicant's credit scores. Prefer to use a co-signer or co-borrower: Applicants can qualify with co-signers and co-borrowers.

Caribou requires a fair credit score of 640 to qualify for one of the lenders in its network. While this can be difficult for some, it does allow co-signers, which may increase your odds of approval. It may also be able to help you lower your interest rate more than Upstart.

Caribou may be a good fit for those who:

Applicants receive pre-qualified refinancing offers, including rate, without an impact to their credit scores. Prefer a simple online application process. Caribou's process is 100% digital, from application to document upload and e-signing.

If you're not able to make your payments and you haven't been able to work out an alternative with the lender or loan servicer, you could be at risk of having your vehicle repossessed. In some cases, lenders can repossess vehicles without warning or court order after you've missed a payment.

If you have loans that have been in repayment for more than 20 or 25 years, those loans may immediately qualify for forgiveness. Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones.

If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief. If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt relief.

In some instances of serious financial hardship, your lender or credit card provider may be willing to settle your outstanding balance for less than what you owe — provided you can offer them a large lump-sum payment.

When should I refinance my car? ›

Refinancing your car loan can be a good idea if it allows you to save money on interest, but it's not the right financial move for every borrower. The best time to refinance is when interest rates have dropped or your credit score and DTI have improved.

In rare cases, you might be able to negotiate the payoff amount for your car with your lender. However, this depends on your lender's policies and your financial situation. Lenders often prefer to settle auto loan debts instead of repossessing vehicles.

Do you qualify for an Auto Approve auto loan? Auto Approve requires a minimum credit score of 620, which falls within the fair range, according to Experian. However, the lender works with an extensive network, so specific qualification requirements will vary by partner.

If you do not use the loan your credit score will not change. The impact to the credit score has already occurred due to your applying for the loan. If you signed a contract to buy the vehicle you have not collected, you will likely be stuck with the vehicle. Unless you can get the dealer to undo the deal.

Shopping around for a car loan can potentially impact your credit score. That's because every time you apply for a loan and have a hard credit check, your score can drop by roughly 1 to 5 points. Fortunately, there are ways to avoid major credit damage.

If you don't have pay stubs to show proof of income, there are a variety of other ways you can do it. Ask about using an employee letter, a W-2, bank statements, and any other document we listed above. Be sure to communicate during this process to ensure the right documents are provided and accepted.

Proof of income is an important number to mortgage lenders, landlords and many other entities. Your income can be a factor that determines everything from your health insurance plan to the amount you may qualify for if you take out a personal loan, auto loan or mortgage.

Proof of income

Lenders want to see that the amount you earn from self-employment is steady or (ideally) increasing over time. For homebuyers with a traditional job, paystubs and W-2s serve as proof of regular income. But for self-employed individuals, income records could include: Two years of personal tax returns.