Caribou Auto Loan Review 2024

Caribou offers auto refinancing for passenger vehicles, including cars, trucks and SUVs but does not refinance motorcycles or commercial vehicles. APRs for loans range from 5.99% to 28.55%, depending on the loan amount, loan-to-value (LTV) ratio, repayment term and borrower’s creditworthiness, income and financial history.

Because Caribou works with a network of lenders, loan amounts and interest rates vary depending on the lender you choose. According to Caribou, the lowest available APR is based on a $45,000 loan and 60-month repayment term and is only available to the most qualified borrowers in certain unspecified states.

Along with auto loan refinancing, drivers can also take advantage of Caribou’s insurance offerings like extended vehicle protection, total loss protection and key replacement. Services are unavailable in Massachusetts, Maryland, Mississippi, Nebraska, Nevada, Wisconsin and West Virginia.

Related: Best Auto Loan Rates

Customer Support

Current and prospective Caribou borrowers can contact the company’s team of loan officers and insurance representatives via phone, email or online chat. Representatives are available 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. Drivers can also book a 15-minute appointment with a loan officer to ask questions about Caribou’s offerings, complete an application or check the status of an existing application.

In addition to live customer support, Caribou provides borrowers with an online resource center and learning library that includes general information about auto refinancing and insurance. There’s also a glossary and list of frequently asked questions that borrowers can refer to during the application process.

The minimum borrower requirements imposed by Caribou vary depending on the lender and aren’t published online. However, Caribou shares that lending decisions and rates depend on general factors, including the loan repayment term, loan amount and the borrower’s financial history and income.

Underwriting requirements are not as transparent as with some lenders. Still, Caribou lets prospective borrowers see what rates they’re likely to qualify for based on a soft credit check that does not impact the driver’s credit score³. Prospective borrowers aren’t required to provide their Social Security number to view their offers.

Total fees and other borrowing costs differ from lender to lender and are reflected in the total APR. However, Caribou charges a $499 processing fee to lenders that might be passed on to the borrower or rolled into the refinanced loan amount. Borrowers should compare all available loan offers to determine lender-specific costs and make an informed decision.

Related: Auto Loan Payment Calculator

Drivers can apply for auto refinancing through Caribou entirely online, including uploading documents. Follow these steps to prequalify and apply for a loan:

1. Use the prequalification wizard. Navigate to Caribou’s prequalification wizard by clicking “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.
2. 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 gives lenders the information they need to extend offers.
3. Choose an offer and create an account. If you want to move ahead with one of the loan offers, create an account and complete a formal application. At this point, the lender requests a copy of your credit report, which involves a hard credit inquiry. The inquiry is reflected in your profile and can impact your credit score. Choosing a loan offer also locks in your interest rate during application review and underwriting.
4. Upload documents. Caribou’s application process is entirely online, and you can upload necessary documentation as well. To do so, log in to the online platform or send the documents via email or text using a document scanning app or smartphone camera.
5. E-sign loan documents. Finally, sign all necessary loan documents electronically using the online platform. After executing the documents, Caribou works with the individual financial institution to complete the refinancing process with your old lender.

Related: What Is An Auto Loan Preapproval? And How To Get It

What to Do If You Get Turned Down

If you get turned down for auto refinancing through Caribou, contact your loan representative to determine why. Sometimes, applications are rejected due to errors or incomplete information. This may necessitate correcting the application and reapplying. However, if Caribou denies your application because of inadequate credit or income, there are a few options.

First, consider adding a co-signer to your application to improve your approval odds. Or if you can wait to refinance, take steps to improve your credit score and reapply when your income is higher. Alternatively, choose another lender that imposes less rigorous lending standards or one that specializes in borrowers with poor credit or little credit history.

As of Feb. 24, 2022, Caribou has an A+ rating from the Better Business Bureau (BBB) and 4.87 stars based on 972 customer reviews. Reviews are also positive on Trustpilot, where Caribou has a 4-star rating based on 462 reviews.

Satisfied customers reported that Caribou’s customer support team is helpful and that the application process is straightforward. That said, some users shared that refinancing through Caribou felt convoluted and frustrating and administrative fees are high.

We reviewed Caribou based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We reviewed lenders based on the weighting assigned to each category:

• Loan cost: 30%
• Eligibility and accessibility: 25%
• Loan details: 20%
• Customer experience: 15%
• Application process: 10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges, applicable fees and available discounts. We also looked at minimum credit score requirements, maximum accepted mileages, whether each lender accepts co-signers or co-borrowers and the geographic availability of the lender.

Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online application options, mobile apps and turnaround time.

¹Social security number is required should you choose to move forward in the loan application process.

²APR is the Annual Percentage Rate. Your actual APR may be different. Your APR is based on multiple factors including your credit profile and the loan to value of the vehicle. APR ranges from 5.95% to 28.55% and is determined at the time of application. Lowest APR is available for a 60 month term, to borrowers with excellent credit. Conditions apply. Advertised rates and fees are valid as of 3/4/24 and are subject to change without notice.

³To check the refinance rates and terms you qualify for, we conduct a soft credit pull that will not affect your credit score. However, if you choose a loan product and continue your application, we or one of our lending partners will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Terms and Conditions apply. Caribou reserves the right to modify or discontinue products and benefits at any time without notice. Participating lenders, rates and terms are also subject to change at any time without notice. The information you provide to us is an inquiry to determine whether our lenders can make you a loan offer. If any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. We do not guarantee that you will receive any loan offers or that your loan application will be approved. If approved, your actual rate will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Offers not available in MD, MS, NE, NV, WI, WV.