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10 Best Auto Loan Refinancing Lenders of March 2021

Auto loan refinancing is simple and easy, and it can save you money. You may be able to lower your monthly payment and raise your overall interest savings over the loan’s existence.

To make auto loan refinancing worthwhile and realistic, you normally need a background of six to twelve months of on-time payments. Your new rate will be calculated by a variety of variables, including your credit history and credit scores.

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What is the method of auto loan refinancing?

When you refinance your car loan, your existing loan is replaced with a new loan from a different lender, ideally with a lower interest rate. You have the option of keeping the loan period the same as the amount of months left on your existing loan, or shortening or extending it.

When is it a good time to refinance your car loan?

It makes sense to refinance your car loan:

If your credit score has increased. Maybe your credit history wasn’t great when you purchased your car. However, if you’ve been making regular, on-time payments, your reputation is likely to have improved, and you may be eligible for a lower interest rate now.

If your interest rate was raised by a car dealer. The car dealer could have paid you a higher interest rate than you may have applied for anywhere when you took out your previous loan. This is popular among car buyers who failed to review their credit score or decide what rate they would be eligible for before purchasing a vehicle.

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Rate Genius

If you are unable to make payments on time. You can stretch the duration of your loan by refinancing, which will lower your payments. However, this is not a measure to be taken lightly. You can pay more interest if you prolong the loan term. It’s also preferable to ruining your credit by skipping payments or risking repossession.

As interest rates begin to decline. Interest rates are dropping for a number of reasons, including the changing economic environment, increased market competition, and regulatory changes. If interest rates are lower now than when you first took out a car loan, refinancing can allow you to pay off your loan faster or save money on interest.

Is it possible that I’ll be able to auto loan refinancing at a lower interest rate?

The interest rate you’re offered is directly proportional to your credit history. Your credit score is likely to have increased if you’ve made six to twelve months of regular, on-time payments on your new loan. When you refinance, a higher credit score would possibly qualify you for a lower interest rate. (It’s also possible that your auto insurance will be reduced.)

Is it possible to refinance a car loan with poor credit?

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If you have bad credit, refinancing your car loan can be complicated, but it is still possible. Even if your credit score hasn’t improved, a lender may be willing to work with you if you’ve made six to twelve months of regular, on-time car payments. Apply to a number of lenders, since each has its own credit score criteria. Since you already have a partnership with your bank or credit union, they will be more likely to work with you.

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Contact your new lender right away if you’re having trouble making payments. You may be able to get some assistance from a representative. For example, extending the loan’s term raises the interest you’ll pay, but it can lower your monthly payments and help you avoid a credit hit if you don’t make them.

What lender is the best for refinancing?

The better your credit score and financial situation, the more options you’ll have. Apply to a few different lenders to see what new interest rate you may be eligible for. Comparing multiple deals improves the chances of getting the best deal.

Remember that rate shopping can lead to multiple lenders contacting you, particularly if you use a service that compares offers for you. Consider creating a new email account and receiving a free Google Voice phone number to use separately.

Many lenders use a soft credit check, which gives you an estimate of your rate but does not change your credit score. Credit scoring formulas consider multiple inquiries in a short time span as a single case if you apply to more than one lender that needs a complete application and hard credit review. The duration is 45 days for most FICO formulas, for example.

What happens if I extend the duration of my loan?



When you refinance, you will will your monthly payments by extending the term of your loan. You won’t save money, however, because you’ll pay more in interest over the duration of your loan.

Extending your term can put you at risk of going into default on your loan, meaning you owe more than your car is worth. It’s a dangerous situation to be in. Your insurance will not cover what you owe if you are in an accident and your car is totaled. You’d still owe money on the loan if you had to sell your car.

RefiJet – Refinance loan

Min. Credit Score
580

Est. APR
2.45 – 17.99%

Loan Amount
$7,500 – $150,000
Relevant details
Best for refinance applicants with decent or good credit who want to compare rates.
Advantages
Using a soft credit search to qualify.
Provides a marketplace for comparing loans from different lenders.
Drawbacks
Loans with terms of up to 60 months are open.

Consumers Credit Union – Refinance loan

Min. Credit Score
620

Est. APR
2.69 – 21.24%

Loan Amount
$5,000 – $75,000
Relevant details
Good for refinance borrowers who want flexible loan terms and prefer credit union facilities.
Advantages
Starting rates are poor.
There are no limits on cars.
Drawbacks
To receive a loan, you must first become a member.

RateGenius – Refinance loan

Min. Credit Score
550

Est. APR
1.99 – 16.00%

Loan Amount
$12,000 – $100,000
Relevant details
Good for refinance borrowers who want flexible loan terms and prefer credit union facilities.
Advantages
Starting rates are poor.
There are no limits on cars.
Drawbacks
To receive a loan, you must first become a member.

MyAutoloan – Refinance loan

Min. Credit Score
575

Est. APR
2.05 – 29.40%

Loan Amount
$5,000 – $99,000
Relevant details
Best for those looking for a fair-credit refinance and getting quotes from a number of lenders.
Advantages
Provides a marketplace for comparing loans from different lenders.
Co-signers are allowed.
Drawbacks
Vehicle restrictions are in place.
Lenders are likely to contact you several times.

LightStream – Refinance loan

Min. Credit Score
660

Est. APR
2.99 – 9.99%

Loan Amount
$5,000 – $100,000
Relevant details
Refinance applicants with good credit who want a no-hassle loan from a reputable bank should consider this option.
Advantages
Starting rates are poor.
It’s legal in all 50 states.
There are no automobile or mileage limits.
Drawbacks
There will be a credit check.
A high credit score is expected as a minimum.

LendingClub – Refinance loan

Min. Credit Score
510

Est. APR
N/A

Loan Amount
$5,000 – $55,000
Relevant details
This choice is better for refinance borrowers who want to compare two different loan terms.
Advantages
Co-signers are allowed.
Using a soft credit search to prequalify.
Drawbacks
Vehicle restrictions are in place.
Not all states have this option.

Tresl – Refinance loan

Min. Credit Score
500

Est. APR
2.49 – 23.99%

Loan Amount
$5,000 – $100,000
Relevant details
Good for refinance applicants with poor or fair credit who need hands-on assistance with vehicle transfer paperwork.
Advantages
A low credit score is expected as a minimum.
Using a soft credit search to prequalify.
It’s legal in all 50 states.
Drawbacks
Loans with terms of up to 60 months are open.
Vehicle restrictions are in place.

Autopay – Refinance loan

Min. Credit Score
600

Est. APR
1.99 – 17.99%

Loan Amount
$2,500 – $100,000
Relevant details
Refinance applicants with fair credit who want to compare deals easily should use this method.
Advantages
Using a soft credit search to qualify.
Provides a marketplace for comparing loans from different lenders.
Co-applicants are approved.
Drawbacks
Loans with terms of up to 60 months are open.
Vehicle restrictions are in place.

Ally Clearlane – Refinance loan

Min. Credit Score
580

Est. APR
3.74 – 7.49%

Loan Amount
$10,000 – $80,000
Relevant details
Refinance applicants with decent or good credit who want to compare deals easily should use this method.
Advantages
Using a soft credit search to prequalify.
Co-signers are allowed.
Drawbacks
A significant minimum income is expected.
Loans with terms of up to 60 months are open.

OpenRoad – Refinance loan

Min. Credit Score
500

Est. APR
N/A

Loan Amount
$7,500 – $100,000
Relevant details
Refinance applicants with recently enhanced credit scores would gain the most.
Advantages
Using a soft credit search to prequalify.
Co-applicants are approved.
Drawbacks
Vehicle restrictions are in place.
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