Best Auto Loan Refinance Banks of 2022
Starting APR
Minimum Credit Score
Loan Terms (range)
Maximum Loan Amount
LightStream Best for Great Credit
4.99%* with Auto Pay & Excellent Credit
660
24 to 84 months*
$100,000
Capital One Best for Checking Rates
Varies
None
Varies
$50,000
Bank of America Best Trusted Name
3.39%
None
48 to 72 months
Not available
AutoPay Best for the Most Options
1.99%
None
Varies
Not available
USAA Best for Members of the Military
Varies
None
Varies
Not available
LendingClub Best for Peer-to-Peer Loans
Varies
None
24 to 84 months
$55,000
Consumers Credit Union Best Credit Union
2.74%
None
12 to 78 months
Not available
Guide to Choosing an Auto Loan Refinance Bank
When to Consider Refinancing Your Auto Loan
It’s a good idea to think about refinancing your auto loan if your credit score has improved since you first took out the loan. A higher credit score can qualify you for lower rates, saving you money on interest over time. However, you may want to hold off on refinancing a loan if your credit score has gone down.
Compare Auto Loan Refinance Banks
In order to make your auto loan refinance a success, it’s important to choose a bank that meets your needs. Some things to consider when evaluating lenders include:
- Rates: The lower the rates, the more you’ll save on interest. Be sure to compare multiple lenders in order to lock in the lowest rates possible.
- Required credit score: Some lenders have minimum credit score requirements.
- Vehicle restrictions: While some banks and lenders work with all vehicles, others have certain restrictions when it comes to vehicle type, age, and mileage.
- Prequalification options: If possible, look for a lender that allows you to prequalify for an auto loan refinance without affecting your credit score.
- Application process: Look for a lender that offers a simple application process and fast funding.
- Customer service: You should choose a lender with a history of good customer service and high customer satisfaction.
Apply for Your Auto Loan Refinance
Before you apply for an auto loan refinance, you should make sure that your own finances are in order. You should try to establish a high credit score, low debt to income ratio, and a history of stable income before applying for an auto loan refinance.
In order to apply for an auto loan refinance, there are a few documents you’ll need to have on hand. These include personal information like your name, address, and Social Security number, as well as proof of insurance, your current loan and lender information, and your vehicle’s make and model, age, and mileage.
Some lenders may allow you to prequalify and view your loan options before submitting an application. Once you decide on a lender, you can submit your application for an auto refinance loan. In some cases, you could receive funding in as little as one business day.
How Does an Auto Loan Refinance Work?
An auto loan refinance is when you replace your current auto loan with a new one, intending to receive a lower interest rate. Your new loan will pay off the old loan, and you will sign new paperwork, have new terms and conditions, and a new interest rate.
You typically choose to refinance your auto loan if you’re unhappy with the rate or terms, or your credit score has gone up significantly since your original loan. Usually, refinancing is to save money, but keep an eye out for refinancing fees.
What Are the Requirements to Refinance an Auto Loan?
Different lenders have different requirements to refinance an auto loan, but most require that you:
- Wait at least 60–90 days after the original loan so the title on your vehicle has been transferred
- Meet a minimum credit score set by the lender (typically 660 or higher)
- Show proof of income and identification documents
- Have a car under a certain number of miles (some lenders require under 125,000 miles and under 10 years old)
How Much Does it Cost to Refinance an Auto Loan?
Just like each auto lender has different criteria for refinancing an auto loan, they also have different refinance fees. Some auto lenders charge processing and origination fees to do the refinance paperwork, and you may have to pay a prepayment penalty from your original lender. However, other lenders don’t charge any fees, so you will want to find this out ahead of time.
Methodology
We chose the 7 best auto loan refinance banks by first reviewing and researching multiple auto loan refinance banks and then selecting the top contenders. We chose the best options based on credit score requirements, company reputation, available options, rates offered, and more.