Have you been notified by Credit Karma that you’re a good candidate for an auto refinance? So was I.

At first it seems like an exciting opportunity, a chance to save a significant chunk of change on your car loan. But before you sign your life away, again, on another auto loan, let me share my recent experience with a company called AutoPay, a company recommended to me by Credit Karma, a popular website that monitors your credit score for free.

While I initially thought they were just slack in their business and professionalism practices, it turns out AutoPay is just a predatory lender looking for new prey and an easy payday.

When Credit Karma Beckons You to Refinance Your Car to a Lower APR

My story starts with the promise of a better rate. Credit Karma started blowing up my inbox with messages to refinance my car, because my credit score went up over the past year and they were sure I could get my rate lowered from 10% to 5%.

I’m all about saving $1,500 over the lifetime of a loan and I had successfully refinanced and saved with Capital One just a year prior, so I thought “what the heck.”

AutoPay Offers Me an Auto Refinance Deal I Couldn’t Refuse, or Could I?

I was connected with a representative from AutoPay—let’s call him “Joe.” From the first ring, the call was… unconventional. I could hear his dog barking loudly in the background, which was a little jarring and definitely unprofessional.

The conversation went from jarring to uncomfortable when he started to question me on my income statements. It wasn’t that my information was inaccurate, but his questions felt judgmental, as if he couldn’t believe my reported income. He rushed through the numbers, making it impossible to follow the final sums. The whole thing felt shady, and for good reason.

When he finally presented the new loan offer, it would have cost me almost $3,000 MORE than what I am currently paying on my loan. To sweeten the deal, “Joe” offered me GAP coverage on my old Kia Forte and an extended warranty on the engine, which I had just replaced this year and was brand new.

All Things Automotive Are Becoming Scams in This Country, from Cars to Insurance and Loans

It makes you wonder, where does the usury hustle end in modern day USA? It seems like some companies are just looking to get an extra buck out of you. Many of them, like AutoPay, are digital finance companies who are simply tapped into the market as third parties.

Consider that many modern makes and models of cars these days break down much faster than they used to, and now you have even more incentive as a shady auto loan company to hunt down new customers with promises of protection and GAP coverage.

Could sound promising to someone who had not already considered the true value of their current car loan, their car, and how long it would take them to pay it off, trade it in, sell it, or simply eat the cost and abandon it (as opposed to shelling out another $3,000 on a transmission, as was previously done at 90,000 miles on my KIA Forte).

It was difficult for me to come to the realization that these days, you almost must purchase a warranty on any car you own or intend to drive while financing. That is how bad the vehicles are, like my KIA, for example.

It probably also has something to do with the rising cost of auto insurance for everyone, along with other important reasons like migration and the removal of standards from society as a whole.

Capital One Got the Refi Job Done

Fortunately, my story isn’t all negative. I was able to improve my original 17% APR loan from Carvana to a 10% APR with Capital One. That was a win and a great experience. But after dealing with companies like AutoPay, it seems getting my loan down to 5% is just a fantasy or fever dream at this point.

Hopefully, sharing my experience will help you be more aware and cautious when seeking a car loan refinance. It’s a reminder to always trust your gut and look at the total numbers, not just the monthly payment.

Additionally, they were able to help me get my first credit card in years, the Capital One Quicksilver Card, when no one else would after returning to the US after a 5-year absence and seemingly no credit history due to that gap. From there, I was able to apply for a Home Depot card a few months later and eventually another consumer credit card within a few months of that.

Final Thoughts: The USA Ain’t What it Used to Be

Ultimately, I’ve tried to avoid using credit anyway. I’m simply tired of all of it. The way they bombard the average person with offers of easy credit with high interest rates speaks volumes about the actual level of prosperity and trust in the US.

If only we had sound money and a more reliable economy, we wouldn’t have to deal with this. Nowadays you can buy a pizza on installments with some of these food delivery apps. The Amazon customer service rep tried to remind me that I could pay with installments during an unrelated chat about a missing package. The usury is out of control.

Do you agree?