PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How difficult is it to refinance a car loan?
Is it hard to refinance a car loan? My best friend told me she refinanced her loan at a lower rate. It made me wonder if I should refinance mine.
Phoebe Mah · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Refinancing a car loan
is a fairly straightforward process, and it can be a good way to save on your monthly payment or shorten the length of your loan—especially if your credit score has improved since your initial loan. Here’s what you need to do:
Think about why you want to refinance: Your goals will help you navigate the different loan terms that are available. For instance, if you’re interested in lowering your monthly payment, consider going with a lender who’s willing to offer you a longer loan term. If you want to save in the long run, you might go with a slightly higher monthly payment so you’ll pay less interest overall.
Gather your paperwork: You’ll need documents showing the current balance of your loan, your monthly payments, and your interest rate—you can usually find all of this easily on your lender’s website. You’ll also need proof of your identity and proof of income.
Shop for a new lender: Apply for refinancing with several lenders to be sure you’re getting the lowest interest rate available to you. The easiest way to do this is with an online auto refi tool like Jerry
—we compare rates from multiple lenders to find a rate that works best for you.
Compare rates and terms: Once you receive your offers, determine the best lender for you. Submit your final application, then wait for confirmation that your old loan has been paid off and your new loan has started. That’s it!
Important note: Be sure to submit all of your applications within the same 14-day period—if you do that, you’ll only get one hard inquiry on your credit report, even if you apply with multiple lenders.
MORE: What is APR and how is it calculated?
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
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.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
