What Gravity Lending auto refinance does
Gravity Lending is an online lender that refinances existing car loans — meaning you take out a new loan with them to pay off your current car loan with another lender. The goal is usually to lower your monthly payment, reduce the interest rate, or shorten the loan term. You keep the same car; only the loan changes hands.
The process starts online. You enter information about your current loan and car, Gravity Lending checks your credit and the car's value, and if they approve you, they send money directly to your old lender to pay off what you owe. Your new monthly payment goes to Gravity Lending instead.
This is different from trading in a car or getting a new loan for a different vehicle. You are refinancing the debt on a car you already own.
Key Takeaways
- Gravity Lending refinances your existing car loan by paying off your current lender and creating a new loan with a potentially lower rate or payment.
- You will need your current loan details, proof of income, and information about your car to start the process online.
- The time from process to funding typically ranges from a few days to two weeks, depending on how quickly you provide documents.
- Refinancing makes sense if your credit has improved since you got your original loan, or if interest rates have dropped.
- Not everyone saves money by refinancing — you pay closing costs and may extend your loan, which can cost more overall.
When refinancing your car loan makes financial sense
Refinancing works best when your situation has changed since you took out your original loan. If your credit score has risen, you may now may have access to for a lower interest rate. If market interest rates have fallen, a new loan could cost less. If you are struggling with your current payment, refinancing to a longer term lowers the monthly amount, though you pay more interest overall.
The math matters. A lower rate on a shorter term saves you the most money. A lower rate on a longer term saves less because you are paying interest for more months. A lower payment on a longer term might save you monthly but cost thousands more by the end.
Before you refinance, calculate what you will actually pay. Your new loan will have closing costs — typically between $0 and a few hundred dollars depending on the lender and your state. You also lose any remaining benefit of your original loan's rate. If you plan to sell or trade the car within a year or two, refinancing may not save enough to cover the costs.
What you need to provide to Gravity Lending
Gravity Lending will ask for information about you, your current loan, and your car. Have these documents or details ready before you start:
- Your driver's license or state ID
- Proof of income, such as recent pay stubs or tax returns
- Your current loan account number and the name of your current lender
- Your car's vehicle identification number (VIN), which appears on your registration and insurance card
- The current mileage and condition of the car
- Your Social Security number, so they can pull your credit report
Gravity Lending will contact your current lender to confirm the loan balance and payoff amount. They may also order a vehicle inspection or valuation to confirm the car's condition and worth.
How the approval and funding timeline works
The speed of refinancing depends on how quickly you respond and how busy Gravity Lending is. Most of the time, the process takes between three and fourteen days from process to funding.
The first step is the initial review. Gravity Lending pulls your credit report and verifies the information you provided. This usually happens within one business day. If they need more information, they will contact you by phone or email.
Once approved, Gravity Lending sends the payoff amount to your current lender. Your old lender then sends Gravity Lending the title and loan documents. During this time, you continue making payments to your original lender until the payoff is complete — do not stop paying. Once the old loan is paid off, your new loan with Gravity Lending begins, and your first payment is due according to the new loan agreement.
Costs and fees to expect
Gravity Lending's costs vary by state and your credit profile. Most online auto refinancers charge between $0 and $500 in closing costs, which may include origination fees, title transfer fees, or document preparation fees. Some lenders roll these costs into the loan itself, meaning you pay them over time with interest. Others require you to pay them upfront.
Ask Gravity Lending for a complete loan estimate before you commit. The estimate should show the interest rate, monthly payment, total amount you will pay over the life of the loan, and all fees. Compare this to what you are currently paying to see if you actually save money.
You may also have a prepayment penalty on your current loan — a fee your original lender charges if you pay off the loan early. Check your original loan documents or call your current lender to find out. If the penalty is large, it may wipe out your savings from refinancing.
How refinancing affects your credit score
When Gravity Lending pulls your credit report, it creates a hard inquiry, which temporarily lowers your credit score by a few points. This is normal and expected. The dip usually recovers within a few months.
Refinancing also closes your old loan account and opens a new one. Closing an old account can lower your score slightly because it reduces the average age of your accounts. Opening a new account also counts as a new account with no payment history yet, which can lower your score temporarily.
Over time, making on-time payments to Gravity Lending rebuilds your score. If refinancing lowers your rate and payment, it may actually help your credit in the long run because you are less likely to miss a payment.
Alternatives to Gravity Lending auto refinance
Gravity Lending is one option, but not the only one. Banks, credit unions, and other online lenders also refinance car loans. Credit unions often offer lower rates to members, so if you belong to one, check there first. Banks may refinance if you have an existing relationship with them. Other online lenders include SoFi, LendingClub, and Upstart, each with different credit requirements and rates.
If you cannot refinance because your credit is too low or your car is too old, you might negotiate directly with your current lender to lower your rate or extend your term. Some lenders will do this without a full refinance process. You can also look into a personal loan to pay off the car loan, though personal loans usually carry higher rates than auto loans.
If your car payment is unmanageable, refinancing may not be the answer. Consider whether you can reduce other expenses, increase your income, or whether keeping the car is the right choice for your budget.
Frequently Asked Questions
Can I refinance a car I still owe money on?
Yes — that is the whole point of auto refinancing. You must owe less than the car is worth (have positive equity). If you owe more than the car is worth (negative equity), most lenders will not refinance because the car cannot cover the loan if you default.
What if my current lender has a prepayment penalty?
Check your loan documents or call your lender to find out the penalty amount. Some penalties are small; others can be hundreds of dollars. Factor this into your savings calculation. If the penalty is large, refinancing may not save you money overall.
How often can I refinance the same car?
Technically, you can refinance multiple times, but it is not usually worth it. Each refinance costs money in fees and creates a hard inquiry on your credit. Refinance only if the savings clearly outweigh the costs — usually this happens once, not repeatedly.
What happens to my old loan documents after refinancing?
Gravity Lending handles the payoff and paperwork with your old lender. Your old lender sends the title to Gravity Lending, and Gravity Lending holds it as collateral for the new loan. You receive new loan documents from Gravity Lending that explain your new payment schedule and terms.
Can I refinance if I have bad credit?
It depends on how bad. Gravity Lending and most online lenders require a credit score of at least 600 to 650, though some will go lower. If your score is very low, you may not be approved, or you may be offered a rate that is not much better than what you have now. In that case, refinancing may not be worth the effort.