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Do you need good credit to refinance a car loan?
My credit isn't great, but I'm having trouble keeping up with my monthly car loan payments. Is it a bad idea to refinance my loan while my credit is bad?
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“The short answer to whether you need good credit to refinance a car loan is no. You will probably need to approach the process in a different way, though.
If you’re hoping to save money on a car loan, refinancing is probably the way to go—especially if you’re worried about the possibility of an
upside down loan
. While it’s true that your credit score has a lot to do with how companies determine your interest rates, you could look into loans with longer repayment periods to reduce your monthly bill.You could also look into renegotiating your current loan for a longer repayment period. But remember, the longer you take to repay your loan, the more you’ll pay in interest over time.
If your loan is from a car dealership, you may be paying too much. Shop around to find other offers. You may be able to save on interest and fees that way.
If none of these options apply to you, it may be time to find a company that specializes in refinancing car loans for people with bad credit, like Autopay or RefiJet.
While you’re at it, reassess your car insurance to see if you’re paying too much. It’s likely you can find a cheaper policy—and the
Jerry
app can help. Jerry will gather low-cost quotes from top providers and deliver them straight to your phone for free. And Jerry will even help you switch policies and cancel your old insurance.”View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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