Can I refinance my car loan?

I financed a car for 72 months about three years ago. But over the past three years, my credit score has gone from about 580 to 740. I think refinancing is probably a good move, but I’m not sure. How do you know if you should refinance your car loan?

Answer
Well done on improving your credit score! A jump from 580 to 740 is amazing and definitely a reason to consider refinancing your car loan.
To decide whether or not to refinance, answer these questions:
  • Does your car have less than 100,000 miles on it?
  • Or is it less than 10 years old?
  • Does your current lender have prepayment penalties that would negate the savings from a refinance?
  • Are you finding better rates when you shop around?
If you can find better rates, your lender has no prepayment penalties, and your car is still new enough, refinancing your car loan is a great idea. It can save you hundreds—or even thousands—of dollars over the life of the loan.
While you’re at it, shop around to compare car insurance quotes, too. By using the Jerry app, you can get free quotes from over 50 top insurers in seconds.
The savings keep coming even after Jerry finds you great insurance at the lowest price. Before every policy renewal period, you’ll be presented with new competitive quotes, which means you’ll always have the best coverage at the best price.
Eric Schad
Answered on Nov 09, 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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