Compare Offers for Auto Loan Refinancing

Looking to save on your monthly car payments or get a better interest rate on your car loan? Explore your refinancing options to find the best deal.

How does refinancing an auto loan work?

Refinancing an auto loan involves replacing your current loan with a new one, ideally with better terms. By refinancing, you may qualify for a lower interest rate, smaller monthly payments, or both.

How do I refinance my car loan?

Refinancing your car loan involves these key steps:

Review your current auto loan and check your credit: Before refinancing, it's important to understand your current loan terms, including your interest rate and monthly payment. Additionally, check your credit score, as a higher score can help you qualify for better rates. Tools like MoneyLion's Credit Builder Plus membership can help you monitor and improve your credit.
Compare auto refinance rates: Shop around to find the best car refinance rates for your financial needs. MoneyLion allows you to compare auto refinance rates from multiple lenders, no matter what the current rate climate is. MoneyLion offers personalized tools that can simplify the process, allowing you to find competitive rates that fit your financial needs.
Close on your new auto loan: Once you've chosen a lender, you'll need to finalize the loan. Be aware of potential credit score impacts from a hard inquiry and stay on top of your payments to maintain good standing.

How can I refinance a car loan with bad credit?

Yes, you can refinance a car loan with bad credit, although it may be more challenging to secure the best rates. Many lenders specialize in helping borrowers with lower credit scores refinance their auto loans.

However, refinancing with bad credit might result in higher interest rates. Using a tool like MoneyLion's Credit Builder Plus membership can help you build and improve your credit health. Track your credit health with enhanced Credit Monitoring, unlock cash rewards while you build credit, and get personalized insights and education to boost your credit health.

When should you refinance a car loan?

Refinancing at the right time can save you money. Here are a few situations where refinancing might be beneficial:

Your credit score improved: A higher credit score can qualify you for a lower interest rate, reducing your overall loan costs.

Market rates have dropped: If interest rates have fallen since you took out your original loan, refinancing your car loan can help you save on interest payments over time.

You're hoping for smaller payments: If you're struggling to make your monthly payments, refinancing to a longer term can reduce the amount you pay each month. Keep in mind, however, that this may increase the total amount you pay over the life of the loan.

Debt consolidation: If you have multiple debts, refinancing your car loan can simplify your payments by consolidating your debts into one loan.

What to consider before refinancing a car loan

Before refinancing your auto loan, consider these key factors:

Timing your auto refinancing: The best time to refinance is when interest rates are low and your credit score is strong. If possible, wait for favorable conditions to maximize your savings.
Closing costs and fees: Refinancing often comes with closing costs and fees, which could reduce the savings from your new loan. Be sure to factor these costs into your decision.
Do the math on savings: Estimate how much you could save on interest payments over the life of your new loan. Use an auto loan refinance calculator to help you determine if refinancing is worth it.

The bottom line

Refinancing your car loan can be a smart financial move if you're looking to lower your monthly payments or secure a better interest rate. MoneyLion's platform makes it easy to compare rates, monitor your credit, and take control of your finances. Explore MoneyLion's auto refinancing options today and start saving.