BEST OF
10 Best Auto Loan Refinancing Lenders of April 2021
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 credit scores.
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 credit scores.
Summary of Best Auto Loan Refinancing Lenders of April 2021
Lender | Min. Credit Score | Est. APR | Loan Amount | Learn More |
---|---|---|---|---|
580 | 2.45 - 17.99% | $7,500 - $150,000 | Learn More on RefiJet's website | |
620 | 2.69 - 21.24% | $5,000 - $75,000 | Learn More on Consumers Credit Union's website | |
550 | 1.99 - 16.00% | $12,000 - $100,000 | Learn More on RateGenius's website | |
575 | 2.05 - 29.40% | $5,000 - $99,000 | Learn More on MyAutoloan's website | |
660 | 2.99 - 9.99% | $5,000 - $100,000 | Learn More on LightStream's website | |
510 | N/A | $5,000 - $55,000 | Learn More on LendingClub's website | |
500 | 2.49 - 23.99% | $5,000 - $100,000 | Learn More on Tresl's website | |
600 | 1.99 - 17.99% | $2,500 - $100,000 | Learn More on Autopay's website | |
580 | 3.74 - 7.49% | $10,000 - $80,000 | Learn More on Ally Clearlane's website | |
500 | N/A | $7,500 - $100,000 | Learn More on OpenRoad's website |

on RefiJet's website
RefiJet - Refinance loan

Min. Credit Score
Est. APR
Loan Amount
on RefiJet's website

on Consumers Credit Union's website
Consumers Credit Union - Refinance loan

Min. Credit Score
Est. APR
Loan Amount
on Consumers Credit Union's website

on RateGenius's website
RateGenius - Refinance loan

Min. Credit Score
Est. APR
Loan Amount
on RateGenius's website
on MyAutoloan's website
MyAutoloan - Refinance loan
Min. Credit Score
Est. APR
Loan Amount
on MyAutoloan's website

on LightStream's website
LightStream - Refinance loan

Min. Credit Score
Est. APR
Loan Amount
on LightStream's website

on LendingClub's website
LendingClub - Refinance loan

Min. Credit Score
Est. APR
Loan Amount
on LendingClub's website

on Tresl's website
Tresl - Refinance loan

Min. Credit Score
Est. APR
Loan Amount
on Tresl's website
on Autopay's website
Autopay - Refinance loan
Min. Credit Score
Est. APR
Loan Amount
on Autopay's website

on Ally Clearlane's website
Ally Clearlane - Refinance loan

Min. Credit Score
Est. APR
Loan Amount
on Ally Clearlane's website

on OpenRoad's website
OpenRoad - Refinance loan

Min. Credit Score
Est. APR
Loan Amount
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.
» MORE: Auto loan refinance calculator
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.
» MORE: Check your credit, free
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.)
» MORE: Get car insurance quotes
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.
To recap our selections...
NerdWallet's Best Auto Loan Refinancing Lenders of April 2021
Frequently asked questions
Most auto loans carry no prepayment penalty, and refinancing has no origination fees. So, basically, the only investment is your time.
Since the car is the collateral, it has to be worth enough to secure the loan for the lender. This is called the “loan-to-value” ratio. Assuming you have good credit, you may be able to refinance an amount greater than your car is worth.
Generally the new loan amount will be the balance left on your current loan. However, some lenders allow you to take cash out when you refinance, especially if your credit is good.