How do you refinance a car loan with bad credit?

I was barely able to get approved for a loan to buy my car since I have bad credit. Obviously, my APR isn't great, and I know you can refinance a loan to help. How would I refinance if I have bad credit?

Answer
Rebuilding your credit takes time, and I know it’s frustrating to have bad credit in our current economy. Thankfully, some lenders will refinance your loan, even if you don’t have stellar credit. Start out by talking to your current lender.
Sometimes, when you sign a car loan with less than favorable interest rates, your lender will give you an option to refinance after you prove that you can make payments on time and keep your loan in good standing. There may be room for negotiation.
After that, you should:
  • Check your credit report to make sure it is accurate. If there are any errors, be sure to dispute them.
  • Shop around for refinancing options from several different lenders. Certain lenders will be more open to borrowers with bad credit.
  • Continue working to improve your credit. This should improve your approval chances in the future.
While you’re thinking about your car expenses, it’s a good time to make sure you’re getting the best rate on your car insurance. The Jerry app can provide you with competitive quotes in under a minute. If you decide to switch policies, Jerry takes care of all the paperwork and phone calls and can even assist you in canceling your old policy!
Emily Maracle
Answered on Nov 18, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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