"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
“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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Johnny Puckett
Answered on May 11, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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