Will a lender refinance my loan if I have bad credit?

When I initially applied for a car loan, I got an interest rate of 22%. I've rebuilt my credit since then, but it’s still below prime. Can I still get a refinance if my credit score is still low?

Answer
Great job on rebuilding your credit! The good news is that even if your credit is a tad bit on the low side, you may still find a lender that’s willing to work with you.
Generally speaking, lenders want you to have a credit score at a minimum of 600 to 660, but the score depends on the requirements of the lender. The closer you are to 660, the better your chances at getting approved.
However, lenders will also look at your income and debt-to-income ratio to determine if you’re a viable loan candidate, so don’t think your entire approval hinges on your credit score.
Grab a copy of your credit report and see what’s on it. To further build your score in a short time, pay off any charge-offs or delinquent accounts first, then move onto revolving credit, such as credit cards.
Once you’ve completed this, get ready to shop around for both a new interest rate and car insurance. Scour the internet for lenders and then use the Jerry app to compare rates from over 50 top insurance companies around the country.
Eric Schad
Answered on Nov 11, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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