"Why am I not able to refinance my car at a lower rate after improving my credit score? "

"I got a car loan a year ago at seven percent with a 700 credit score. Now my score has gone up. I applied for a refinance loan and was approved for the same exact interest rate as before.

While it doesn’t make financial sense to make a lateral move like that, I would like to understand the lender's logic here.


Answer provided by
Johnny Puckett
Answered on May 11, 2021
“Put simply, the lender has likely decided that the refinance loan is only a good deal for them if they can charge you a seven percent interest rate.
You should check the value of the car you are trying to refinance. If you are not upside-down on the car—meaning the market value of your vehicle is not less than the amount you owe—you should check with a different lender to see if you can get a better rate.

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