How To Refinance A Car Loan

If you want to know how to refinance a car loan, the process to refinance your car loan makes sense in several circumstances:

Interest rates are low. You want to refinance your car loan when the interest rate on your new loan is lower than the interest rate on your current loan. When you refinance, it is considered a used car loan, which makes sense since you have had our car for awhile. Fortunately, interest rates are relatively low so it is an opportune time to refinance car loan rates now before interest rates rise.
Your credit score is stronger. If you have improved your credit card since you last got an auto loan, then now could be a great time to refinance a car loan. A stronger credit profile signals to lenders that you are financially responsible and trustworthy. It also increases the likelihood, from a lender’s view, that you will repay your car loan. Therefore, you can qualify a lower refinance car loans rates. Even slightly lower rates for your car loan can save you interest cost, which means more money in your pocket.
You didn’t get the best rate then. Even if you had strong credit when you bought a car, that doesn’t mean you got the best auto loan rates. Today, there may be lenders who will refinance your car loan at a lower rate. The ability to refinance a car loan at a lower interest rate can save you significant money.

Top Picks For Student Loan Refinancing

September 2024

Advertiser Disclosure

		
			Fixed APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Fixed APR means that your interest rate will always stay the same. Even if interest rates change, your interest rate or monthly payment will not. Fixed APR includes a 0.25% discount when you enroll in autopay.
		
			Variable APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Variable APR means that your interest rate can fluctuate over time, which can increase or decrease your monthly student loan payment. Typically, a variable-rate loan has a lower introductory rate than a fixed-loan rate loan. Variable APR includes a 0.25% discount when you enroll in autopay.
		
			APR

4.99% - 9.99%

6.24% - 9.99%

4.99% - 9.99%

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on SoFi's website

Overview

Variable APR:

6.24% - 9.99%

Fixed APR:

4.99% - 9.99%

Minimum Credit Score:

650

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000 ($10,000 in CA)

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All states

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

SoFi Student Loan Refinancing Review

4.89% - 9.74%

5.89% - 9.74%

4.89% - 9.74%

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on Earnest's website

Overview

Variable APR:

5.89% - 9.74%

Fixed APR:

4.89% - 9.74%

Minimum Credit Score:

650

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5-20 years

Borrower Residency:

All States except NV

Hardship Deferment:

Yes

Co-signer Option:

Review:

Earnest Student Loan Refinancing Review

5.19% - 9.74%

5.99% - 9.74%

5.19% - 9.74%

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on NaviRefi's website

Overview

Variable APR:

5.99% - 9.74%

Fixed APR:

5.19% - 9.74%

Minimum Credit Score:

680

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,001 ($10,001 in CA)

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5-20 years

Borrower Residency:

All States except NV

Hardship Deferment:

Yes

Co-signer Option:

Review:

NaviRefi Student Loan Refinancing Review

4.84% - 8.69%

5.28% - 8.99%

4.84% - 8.99%

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on ELFI's website

Overview

Variable APR:

5.28% - 8.99%

Fixed APR:

4.84% - 8.69%

Minimum Credit Score:

680

Minimum Income:

$35,000

Fees:

None

Minimum Loan Amount:

$10,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All States

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

ELFI Student Loan Refinancing Review

3.99% - 9.99%

5.99% - 9.99%

3.99% - 9.99%

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on Splash's website

Overview

Variable APR:

5.99% - 9.99%

Fixed APR:

3.99% - 9.99%

Minimum Credit Score:

640

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5 – 20 years

Borrower Residency:

All states

Hardship Deferment:

Varies

Co-signer Option:

Review:

Splash Financial Student Loan Refinancing Review

6.99% - 10.99%

7.29% - 12.44%

6.99% - 12.44%

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on Citizens' website

Overview

Variable APR:

7.29% - 12.44%

Fixed APR:

6.99% - 10.99%

Minimum Credit Score:

Not disclosed

Minimum Income:

$24,000

Fees:

No prepayment or origination fees

Minimum Loan Amount:

$10,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All states

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

Citizens Student Loan Refinancing Review

5.24% - 9.15%

5.34% - 9.25%

5.24% - 9.25%

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on Laurel Road's website

Overview

Variable APR:

5.34% - 9.25%

Fixed APR:

5.24% - 9.15%

Minimum Credit Score:

680

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All States

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

Laurel Road Student Loan Refinancing Review

5.49% - 9.75%

5.53% - 12.18%

5.49% - 12.18%

Get My Rate

View Details

on LendKey's website

Overview

Variable APR:

5.53% - 12.18%

Fixed APR:

5.49% - 9.75%

Minimum Credit Score:

680

Minimum Income:

$24,000

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All states, except ME, ND, NV, RI, WV

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

LendKey Student Loan Refinancing Review

Checking Your Rate Doesn't Affect Your Credit Score

When Not To Refinance A Car Loan

The decision to refinance a car loan may not make sense in one of the following scenarios:

Car value less than loan balance. The value of your car is lower than the outstanding loan balance.
Car age.The age of your car is old compared to the maximum age that a lender will refinance your car loan.
Balance too high. The amount you want to refinance is more than the maximum amount for which a lender will refinance your car loan.

You can always check the market value of your car on Kelley Blue Book, Edmunds or Auto Trader.

How To Save Money When You Refinance Your Car Loan

The decision to refinance your car loan can save you money because you are getting a new car loan with a lower interest rate than your current car loan. The proceeds from the new car loan are used to pay off your existing car loan, and then you only will make payments monthly on your new auto loan. The lower interest rate means you will save money each month, since there is less interest.

If you have a stronger credit profile and make stable income, you may qualify for a lower interest rate. Auto loan lenders like to refinance a car loan for a borrower with a higher credit score because it demonstrates financial responsibility and creditworthiness. This provides more comfort that you are a responsible borrower who will repay the auto loan in full.