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.
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.
A higher credit score can improve your chances of qualifying for a loan with a lower interest rate and better terms.
Whenever car loan interest rates are down could be a good time to refinance your car.
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.
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.