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?

Answer
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!
Eric Schad
Answered on Nov 22, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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