Can I refinance my car loan if my credit score went up?

I got a car loan about three years ago, but my credit score has gone up to 660 since then. I currently have a rate of 12%, so I’m fairly certain I can get a better deal. Can I refinance a car loan?

Answer
Great work on improving your credit score! Now you can reap the benefits. You can definitely refinance your car loan since your credit score has improved and you’ve been paying on it for three years.
To refinance your car loan, start by looking at your credit report. Make sure you don’t have any derogatory accounts or delinquencies and pay off any extraneous debt if possible.
However, you should make sure that a car loan refinancing makes sense. Consider the following when assessing if refinancing is the right move:
  • Can you find a better interest rate?
  • Does your current lender have prepayment penalties?
  • Does your car have less than 100,000 miles or is less than 10-years-old?
  • Are you going to extend the loan or aim for a quicker payoff?
Addressing these questions will help you decide whether a refinancing is the best plan for your finances.
If you refinance your car, you should free up some cash for fun, bills, or whatever else you need it for. However, you shouldn’t leave money on the table by ignoring your car insurance rates. Instead, shop car insurance with the Jerry app.
As a licensed broker, Jerry helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!
Eric Schad
Answered on Dec 14, 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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