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10 Best Auto Loan Refinancing Lenders of July 2020

NerdWalletJune 18, 2020

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Refinancing an auto loan could lower your rate and monthly payment, saving you hundreds of dollars a year.

Refinancing your car loan is fast and easy — and can put more money in your pocket. You may be able to reduce your monthly payment and boost your total savings on interest over the life of the loan.

You generally need a history of six to 12 months of on-time payments to make refinancing worthwhile and possible. The new rate you’ll qualify for depends on multiple factors, including your credit history and score.

LightStream
Learn More

on LightStream's website

Min. Credit Score

660

Est. APR

3.49 - 11.89%

Loan Amount

$5,000 - $100,000

Best for refinance applicants with good credit looking for a no-hassle loan from a well-known bank.

Pros

  • Low starting rates.
  • Available in all 50 states.
  • No vehicle or mileage restrictions.

Cons

  • Hard credit check required.
  • High minimum credit score required.
Read full review

Qualifications

  • Minimum monthly income: None.
  • Maximum vehicle age: None.
  • Maximum mileage: None.
  • Maximum loan to value ratio: None.
MyAutoLoan
Learn More

on MyAutoLoan's website

Min. Credit Score

575

Est. APR

2.05 - 29.40%

Loan Amount

$5,000 - $99,000

Best for fair-credit refinance applicants and getting quotes from multiple lenders.

Pros

  • Offers marketplace to compare loans from multiple lenders.
  • Allows co-signers.

Cons

  • Offers loan terms over 60 months.
  • Vehicle restrictions.
Read full review

Qualifications

  • Minimum monthly income: $1,800.
  • Maximum vehicle age: 10 years.
  • Maximum mileage: 125,000.
  • Maximum loan to value ratio: 140%.
RefiJet
Learn More

on RefiJet's website

Min. Credit Score

580

Est. APR

2.45 - 17.99%

Loan Amount

$7,500 - $150,000

Best for fair or good-credit refinance applicants who want to shop rates.

Pros

  • Prequalify with a soft credit check.
  • Offers marketplace to compare loans from multiple lenders.

Cons

  • Offers loan terms over 60 months.
Read full review

Qualifications

  • Minimum monthly income: $2,000.
  • Maximum vehicle age: 10 years.
  • Maximum mileage: 200,000.
  • Maximum loan to value ratio: 150%.
RateGenius
Learn More

on RateGenius's website

Min. Credit Score

550

Est. APR

1.99 - 16.00%

Loan Amount

$12,000 - $100,000

Best for fair or good-credit refinance applicants who don’t mind checking rates with a hard credit pull.

Pros

  • Offers marketplace to compare loans from multiple lenders.
  • Available in all 50 states.

Cons

  • Hard credit check required.
  • Vehicle restrictions.
Read full review

Qualifications

  • Minimum monthly income: $2,000.
  • Maximum vehicle age: 7 years.
  • Maximum mileage: 100,000.
  • Maximum loan to value ratio: 120%.
Autopay
Learn More

on Autopay's website

Min. Credit Score

600

Est. APR

1.99 - 17.99%

Loan Amount

$2,500 - $100,000

Best for refinance applicants with fair credit who want to quickly compare offers.

Pros

  • Prequalify with a soft credit check.
  • Offers marketplace to compare loans from multiple lenders.
  • Allows co-applicants.

Cons

  • Offers loan terms over 60 months.
  • Vehicle restrictions.
Read full review

Qualifications

  • Minimum monthly income: $2,000.
  • Maximum vehicle age: 11 years.
  • Maximum vehicle mileage: 125,000.
  • Maximum loan to value ratio: Did Not Answer.
Tresl
Learn More

on Tresl's website

Min. Credit Score

500

Est. APR

2.49 - 23.99%

Loan Amount

$5,000 - $100,000

Best for bad- or fair-credit refinance applicants looking for hands-on help with vehicle transfer paperwork.

Pros

  • Low minimum credit score requirement.
  • Prequalify with a soft credit check.
  • Available in all 50 states.

Cons

  • Offers loan terms over 60 months.
  • Vehicle restrictions.
Read full review

Qualifications

  • Minimum monthly income: $1,500.
  • Maximum vehicle age: 10 years.
  • Maximum mileage: 150,000.
  • Maximum loan to value ratio: 150%.
Clearlane
Learn More

on Clearlane's website

Min. Credit Score

580

Est. APR

3.99 - 7.74%

Loan Amount

$10,000 - $80,000

Best for refinance applicants with fair or good credit who want to quickly compare offers.

Pros

  • Prequalify with a soft credit check.
  • Allows co-signers.

Cons

  • High minimum income required.
  • Offers loan terms over 60 months.
Read full review

Qualifications

  • Minimum monthly income: $2,000.
  • Maximum vehicle age: 10 years.
  • Maximum mileage: 120,000.
  • Maximum loan to value ratio: 155%.
Consumers Credit Union
Learn More

on Consumers Credit Union's website

Learn More

on Consumers Credit Union's website

Min. Credit Score

620

Est. APR

2.69 - 21.24%

Loan Amount

$5,000 - $150,000

Best for refinance applicants who want flexible loan terms and like the services offered by a credit union.

Pros

  • Low starting rates.
  • No vehicle restrictions.

Cons

  • Hard credit check required.
  • You must become a member to get a loan.
Read full review

Qualifications

  • Minimum monthly income: $2,000.
  • Maximum vehicle age: None.
  • Maximum mileage: None.
  • Maximum loan to value ratio: 125%.
Lending Club
Learn More

on Lending Club's website

Min. Credit Score

510

Loan Amount

$5,000 - $55,000

Best for refinance applicants who want to see two different loan term options.

Pros

  • Allows co-signers.
  • Prequalify with a soft credit check.

Cons

  • Vehicle restrictions.
  • Not available in every state.
Read full review

Qualifications

  • Minimum monthly income: Did not answer.
  • Maximum vehicle age: 10 years.
  • Maximum mileage: 120,000.
  • Maximum loan to value ratio: Did not answer.
OpenRoad
Learn More

on OpenRoad's website

Min. Credit Score

500

Loan Amount

$7,500 - $100,000

Best for refinance applicants who’ve recently bettered their credit scores.

Pros

  • Prequalify with a soft credit check.
  • Allows co-applicants.

Cons

  • Vehicle restrictions.
Read full review

Qualifications

  • Minimum monthly income: $1,500.
  • Maximum vehicle age: 8 years.
  • Maximum mileage: 140,000.
  • Maximum loan to value ratio: Did not answer.

Summary of Best Auto Loan Refinancing Lenders of July 2020

LenderMin. Credit ScoreEst. APRLoan AmountLearn More
LightStream

LightStream - Refinance loan

Learn More

on LightStream's website

660

3.49 - 11.89%

$5,000 - $100,000

Learn More

on LightStream's website

MyAutoLoan

MyAutoLoan - Refinance loan

Learn More

on MyAutoLoan's website

575

2.05 - 29.40%

$5,000 - $99,000

Learn More

on MyAutoLoan's website

RefiJet

RefiJet - Refinance loan

Learn More

on RefiJet's website

580

2.45 - 17.99%

$7,500 - $150,000

Learn More

on RefiJet's website

RateGenius

RateGenius - Refinance loan

Learn More

on RateGenius's website

550

1.99 - 16.00%

$12,000 - $100,000

Learn More

on RateGenius's website

Autopay

Autopay - Refinance loan

Learn More

on Autopay's website

600

1.99 - 17.99%

$2,500 - $100,000

Learn More

on Autopay's website

Tresl

Tresl - Refinance loan

Learn More

on Tresl's website

500

2.49 - 23.99%

$5,000 - $100,000

Learn More

on Tresl's website

Clearlane

Clearlane - Refinance loan

Learn More

on Clearlane's website

580

3.99 - 7.74%

$10,000 - $80,000

Learn More

on Clearlane's website

Consumers Credit Union

Consumers Credit Union - Refinance loan

Learn More

on Consumers Credit Union's website

620

2.69 - 21.24%

$5,000 - $150,000

Learn More

on Consumers Credit Union's website

Lending Club

Lending Club - Refinance loan

Learn More

on Lending Club's website

510

N/A

$5,000 - $55,000

Learn More

on Lending Club's website

OpenRoad

OpenRoad - Refinance loan

Learn More

on OpenRoad's website

500

N/A

$7,500 - $100,000

Learn More

on OpenRoad's website

How does auto loan refinancing work?

Refinancing your auto loan replaces your current loan with a new loan, from another lender, hopefully with a lower interest rate. You can keep the length of loan the same as the number of months left on your current loan, or you can shorten or extend it.

When should you refinance your car loan?

Refinancing your car loan makes sense:

If your credit has improved. When you bought your car, maybe your credit history wasn’t great. But now, if you’ve been making consistent, on-time payments, your credit has probably improved and you may qualify for a lower interest rate.

If a car dealer marked up your interest rate. When you got your existing loan, the car dealer might have charged you a higher interest rate than you could have qualified for elsewhere. This often happens to shoppers who didn’t check their credit score or what rate they might qualify for before buying a car.

If you can’t keep up with payments. By refinancing, you can extend the length of the loan, which will lower your payments. But don’t take this step lightly. If you extend the term of the loan, you’ll pay more in interest. However, it’s better than damaging your credit by missing payments or facing repossession.

When interest rates drop. Interest rates fall for a variety of reasons: a changing economic climate, increased competition in the marketplace and regulatory changes. If rates are lower now than when you first got a car loan, refinancing could help you pay off your loan sooner or save you money on interest.

Am I likely to qualify for refinancing at a lower interest rate?

Your credit history will have a direct impact on the interest rate you’re offered. If you’ve made six to 12 months of steady, on-time payments on your current loan, it’s likely that your credit score has improved. With a better credit score, you will probably qualify for a lower interest rate when you refinance. (Your car insurance is likely to get cheaper, too.)

Can I refinance my car loan with bad credit?

It can be difficult to refinance your auto loan if you have bad credit, but it might still be possible. If you’ve made six to 12 months of consistent, on-time car payments – even if your score hasn’t yet improved – a lender might work with you. Apply to multiple lenders, because each one has different credit score requirements. Your bank or credit union might also be more open to working with you because you already have a relationship with them.

If you’re having trouble making payments, contact your current lender right away. A representative might be able to help you. For instance, lengthening the term of the loan increases the interest you’ll pay, but it can lower your monthly payments and help prevent a hit to your credit from missing them.

Which is the best lender to refinance with?

The higher your credit scores and the stronger your finances, the more choices you’ll have. Apply to multiple lenders to see what new interest rate you can qualify for. Comparing several offers gives you the best chance of finding the lowest rate.

Keep in mind that rate shopping can also lead to being contacted by multiple lenders, especially if you use a service that compares offers for you. Consider opening a new email account and getting a free Google Voice phone number that you can check separately.

Most lenders use what is known as a soft credit check that gives you a rate estimate but does not hurt your credit score. If you apply to more than one lender that requires a full application and hard credit check, credit scoring formulas tend to treat multiple inquiries in a short time period as a single event. For most FICO formulas, for example, that period is 45 days.

What happens if I extend my loan term?

Extending the length of your loan when you refinance will lower your monthly payments. However, you likely won’t save money because you’ll pay more in interest over the life of your loan.

Extending your term could also put you at risk of becoming upside-down on your loan, meaning you owe more than your car is worth. This is a risky situation to be in. If you get in an accident, and your car is totaled, your insurance might not cover what you owe. Also, if you have to sell your car, you’d still owe money on the loan.

Last updated on June 18, 2020

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