Can you refinance your car loan with bad credit?

Your car loan’s interest rate might be higher than you’d like, particularly at a time when inflation eats away at your paycheck.

But if you had a “bad” credit rating when you got the car loan, that interest rate might have seemed like the best option you could get.

Medium Brush Stroke

How soon can you refinance an auto loan? The best time to refinance your car, even with bad credit, is when the following situations apply.

If Your Credit Score Has Improved

A higher credit score can improve your chances of qualifying for a loan with a lower interest rate and better terms.

When Interest Rates Are Dropping

Whenever car loan interest rates are down could be a good time to refinance your car.

When Your Car’s Value Is Still High

If the car is holding its value, this may be a good time to refinance it, assuming that interest rates are lower than they were when you bought the car.

If You’re Struggling to Make Your Car Payments

When your auto loan interest rate is very high and you still have a few more years left on the loan, refinancing could be an option to reduce your monthly payments and help free up some cash in your budget.