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Can I Refinance a Car Loan with Bad Credit?

If you’ve been struggling to make your monthly car payments, you may be considering refinancing your car loan. This is often an effective way to lower your payments and add cash to your monthly budget.

But what if you have a bad credit score? You may be wondering if auto refinance is still possible. The good news is that you absolutely can refinance a car loan with bad credit. Even with a low credit score, you may be able to receive better terms that will save you money over the lifetime of your loan.

Is There a Minimum Credit Score Needed to Refinance a Car Loan?

Car loan refinance is often an effective cost savings solution for individuals with bad credit since there are certain lenders that will offer refinancing to people with credit scores considered fair or poor. While you typically need a minimum credit score of 700 to qualify for the best interest rates and a score between 660-700 to unlock standard interest rates, you can still potentially secure a lower rate than you’re currently paying even if your credit score is below 660. This will result in financial savings over the lifetime of your loan.

Lenders consider a variety of factors – in addition to your credit score – when determining your eligibility for auto refinance. These include:

How to Refinance a Car Loan with Bad Credit

how to refinance a car loan with bad creditEven with bad credit, scoring favorably in the factors listed above can help improve your chances of getting approved as well as potentially unlock slightly better loan terms. That being said, it may also be worthwhile to take some steps to boost your credit score before refinancing your car loan.

Once you’ve taken these steps to raise your credit score as much as possible, it’s time to start the refinancing process. Make sure to compare lenders to ensure you select the loan option with the best possible terms for your goals. When you work with iLending, we’ll compare rates for you, giving you peace of mind that you’re achieving the best possible outcome when you refinance your car loan.

Benefits of Refinancing a Car Loan with Bad Credit

woman saving money - benefits of car loan refinanceYou can experience a variety of benefits when you refinance a car loan with bad credit:

iLending Makes Car Loan Refinancing Easy and Hassle Free

If you’re ready to refinance your car loan, iLending can help Our exclusive You First Approach™ makes refinancing easy and hassle free. You’ll work with one of our personal loan consultants who will discuss your goals in detail. Then, your loan consultant will compare loan options from our vast network of over 50 nationwide lenders to identify the best loans that align with your stated goals. Your loan consultant will review these options with you, answering any questions you may have, and then recommend the best solution to address your unique needs. You’ll receive assistance with the application process to ensure it is completed correctly, and your loan consultant will also make sure your existing loan is paid off properly.

On average, iLending customers save $145 per month when they refinance with us. This monthly savings can be extremely helpful when your budget is spread thin, and it can help you pay off other debts in order to repair your credit score over time.

Apply now to get the car loan refinance process started.

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