How soon can you refinance your car loan?

How early can you refinance your loan? My interest rates on my car loan are higher than I thought they would be. My brother said after buying my car, I can refinance my loan immediately. Is that true?

Answer
During your loan, you can choose to refinance your loan as early or as late as you want. That said, some periods will guarantee more perks and chances of approval for a new loan. It typically works in your best interest to refinance at least six months after you get your loan.
Lenders will deem you a higher-risk applicant if you refinance immediately, and they may give you a higher interest rate on your new loan or reject your application. Lenders want to see that you can make consistent payments on your loan, so waiting works in your favor.
Waiting at least six months helps you rebuild your credit from your initial loan application and allows you to make consistent payments on your loan.
When you’re ready to refinance, try using the Jerry app to shop with multiple lenders and find the best rates. Use our refinance calculator and avoid the hassle of searching for lenders yourself. Jerry makes it easy by finding the best lenders at the best rates. On average, car owners pay $85 less every month by refinancing their auto loan.
Hopefully, this advice will help you figure out when to refinance your loan!
Phoebe Mah
Answered on Nov 23, 2021
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