Can I refinance a car loan if I have negative equity?
I want to refinance my car loan, but I'm upside down on it. Can I still refinance if I have negative equity?
You’ve made a smart move by wanting to refinance your car loan. Unfortunately, most lenders won’t refinance a car with negative equity without a credit score of 750 or higher—but you still have some options if not!
Instead of trying to refinance immediately, start to pay your loan down more efficiently. Even a few extra bucks a month thrown at the principal can help you pay this down until you reach the break-even point (where the loan balance and cash value of the car are equal).
At this point, put on your shopping shoes and start looking for car loan rates. The more rates that you compare, the better chance you have at getting a great one for your refinanced loan!
If you want to save some money to put toward your auto loan, shop around for car insurance, too. The easiest way to do this is through the Jerry app—we’ll get you personalized quotes from top insurers in seconds, so that all you need to do is pick the plan that works best for you. And once you pick, we’ll even help you switch!
Best of luck—you’ve got this!
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