When it comes to auto-related bills, your credit score has mileage.
CreditKarma.com, known for providing consumers with free access to their credit reports and scores, has begun an auto-assistant dashboard aiming to help drivers manage their vehicle finances. Among other features, members can check their DMV profile, view details of their loan or lease, gauge the value of the car, and see their auto insurance score.
Better yet, they’ll get notifications if their credit score could make them eligible for better rates on their auto loan or insurance. Drivers don’t often capitalize on that information, said Rory Joyce, director of product for CreditKarma — a realization that spurred development of the tool.
“We started to notice that many of our members have auto loans that were effectively mispriced,” he said.
By the site’s estimates, 4.7 million users are overpaying on their auto loans. Over the life of the loans, that represents $10.1 billion in unnecessarily high interest payments.
“We found just bringing awareness of what the calculated APR is, versus what we think they deserve, is eye opening,” Joyce said.