Can you refinance a car loan with another bank?

My credit score is around 790 now, but I got my car loan two years ago when it wasn’t so high. I’m going to refinance my car to take advantage of my new credit score, but my current bank isn’t offering competitive rates. Can you refinance your car loan with a different lender?

Answer
That’s quite an impressive credit score—congratulations! You’ve actually entered into the superprime level of credit, which qualifies you for the best rates possible on a car loan.
As far as where to refinance your vehicle, you can refinance a car loan with another bank—you aren’t confined to your current lender. And shopping around for the best rate can save you tons of money.
However, important factors to consider before you refinance include:
  • Whether you’re getting a better rate; if you aren’t, refinancing doesn’t make sense
  • If your current lender has prepayment penalties, which can cancel the benefits of refinancing
  • If you qualify for cash-out refinancing, which can give you money to pay down other debt
Keep in mind that some lenders may decline your refinancing application if you’re upside down on your car loan, meaning you owe more than the car is worth. If this is your case, you should try to reach a break-even point by paying more money toward the principal of the loan each month.
No matter what you decide about your loan, now is also a good time to review your car insurance. You can avoid overpaying and lower your monthly bill with the help of the Jerry app.
Jerry shops for low prices with over 50 different insurance companies for free. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away!
Eric Schad
Answered on Nov 10, 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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