"Why won’t my lender refinance my car loan now that my credit has improved? "

"I financed a car last year at 17% interest, but now my credit is way higher. I got this loan thinking that I would be able to refinance it later for a lower interest rate, but my lender is saying they will not refinance it.

Am I stuck or is there another way to refinance my car loan?


“If you are not upside-down on your car, your lender likely doesn’t want to refinance your car loan because they are currently set up to make good money off you.
You should first check the value of your car. Next, see how much your payoff amount is.
When comparing these two numbers, if the car’s value is equal to or higher than the payoff amount, you should apply with a different lender. If the payoff amount is higher, though, you will need to pay down the loan until you owe less than the car is worth and then reapply. “
Johnny Puckett
Answered on May 25, 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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