By Kimberlee Leonard

Even with poor credit, there are still auto loan refinancing options to help you reduce your payments, lower your interest rates and save money.

With the high prices of cars, it’s no surprise that most buyers need to take out a loan for the purchase. In fact, 80% of new cars and 35% of used vehicles are purchased with auto loans, according to Experian’s State of the Automotive Finance Market report. If you took out a loan while you had bad credit, you could be stuck with a high rate. As of 2026, annual percentage rates for borrowers with less-than-perfect credit can be as high as 21%.  

Fortunately, these loans can be refinanced to get a lower rate or monthly payment. If you’re looking to refinance your auto loan but have poor credit, you still have options that can help. Here’s our list of the best auto refinance loans for those with bad credit.

Key Takeaways

• The average new-car loan rate for borrowers with deep subprime credit was 15.85%, according to Experian. 
• Refinancing could give you a more affordable auto loan payment and help you save money. 
• Borrowers with credit scores as low as 500 can qualify for auto loan refinancing.

Best Auto Refinance Loans & Rates for Bad Credit

• LendingTree — Best Overall
• MyAutoLoan — Best Lease Buyout Option
• Gravity Lending — Best for Price Transparency
• Auto Approve — Best for Specialty Refinance 
• Caribou — Best Online Loan Documents
• RefiJet — Best for Personalized Service
• OpenRoad Lending — Best for Quick Processing

The below table to a quick snapshot of how these auto refinancing lenders compare: 

Best Overall: LendingTree

Highlights

Why we chose it: LendingTree is our top choice because it shops lenders for you, generating offers from multiple partners to approve loans for consumers with bad to good credit.

It takes just a few minutes to go through LendingTree’s initial process that generates up to five offers for you. It’s free to use this tool, though some lenders may have an application fee when you accept the offer and complete the application to finalize the loan. LendingTree is a nationwide network of lenders, serving consumers in all fifty states. It has a secure network to keep your personal data confidential, but you aren’t required to provide a Social Security number in the form to get the offers.

LendingTree goes beyond just giving a rate from its partners. It provides you with a monthly payment, rate, and partner rating so you have the information to make the best decision for your loan. It offers loans that go out as far as seven years, allowing you to extend the term so that you can reduce the monthly payment effectively. Customers like what they get with LendingTree, giving it a 4.5-star rating among 16,000 reviews on Trustpilot. They note that the process is straightforward and efficient.

Best Lease Buyout Option: MyAutoLoan

Highlights

Why we chose it: MyAutoLoan has a specific loan category for lease buyouts, focusing on the nuances of refinancing a lease, making it the best in this category. 

MyAutoLoan starts with a simple form that takes your address, Social Security number and car information and uses it to generate four loan offers. It’s a simple process that doesn’t do a credit check at the offer stage, preserving your credit score as you shop for a new loan. It offers loans for a multitude of vehicles, including cars, trucks, and motorcycles. The offers are easy to understand and clearly lay out the pertinent information, allowing you to shop with confidence. It even has a loan calculator so you can determine what you can afford before you ever complete the offer form. 

MyAutoLoan doesn’t have a large review presence on Trustpilot. There are less than 1,000 reviews, and it has a 3.8-star average rating. Customers are mixed in their reviews, with those who like the platform noting that they received the support they needed throughout the process, which helped alleviate the stress they felt. Critics of the platform said it requires too much information at the offer stage, which led to distrust of the service.

Best for Price Transparency: Gravity Lending

Highlights

Why we chose it: Gravity Lending guarantees that there are no hidden fees following the offer you receive, giving it the most transparency of the lenders reviewed. 

Many online lenders surprise you with hidden fees once you start the application process. Not Gravity Lending. They guarantee there are no hidden fees once the offer is presented. It does require a lengthy initial form, but this means that the company has collected the data needed to make a solid offer to you. The company has audited its customers and has found an average savings of $105 per month, with the ability to skip the first 90 days of payments.

On Trustpilot, Gravity Lending receives top marks with an average rating of 4.9 stars in more than 2,000 reviews. Customers note a great experience with Gravity Lending, noting that the staff is friendly and patient and that the process of completing the loan is communicated in simple terms. Customers are most pleased with the savings they receive from refinancing their loans. 

Best for Specialty Refinance: Auto Approve

Highlights

Why we chose it: Auto Approve can help consumers refinance hard-to-finance vehicles, including RVs, ATVs, and boats, making it perfect for specialty refinancing. 

While Auto Approve doesn’t advertise rates on its website, they do work to get you the lowest rate possible through its offer process. It allows customers to refinance a wide range of vehicles, from cars and trucks to specialty vehicles such as RVs and boats. Once you accept the offer and finalize the loan, you are able to skip the first 90 days of payments, providing breathing room after the refinance is finalized. Another thing we like about Auto Approve is how they think outside of the box and consider your reasoning behind getting a refinance. For example, if you’re refinancing because you are retiring soon and want to end payments, it will use this data in the terms of your loan to shorten the payment duration. Auto Approve also makes the process of adding or dropping a co-borrower simple.  

This company has a large profile on Trustpilot with more than 11,600 reviews. Its average star rating is 4.7. A lot of customers note the great experience they have with Auto Approve and give the staff praise for their professionalism and patience. Customers also note that the staff is quick to respond to questions and helps you get through paperwork expeditiously.

Best Online Loan Documents: Caribou

Highlights

Why we chose it: Caribou utilizes an online signature system that makes the process of completing loan documents quick and easy.

Caribou is designed to help you save money with its more than 100,000 customers saving an average of $141 per month with a refinance. The process is easy and takes just a few minutes to complete the online form, which results in an offer that can be converted into a loan in mere minutes. Unlike other car refinance companies, Caribou thinks about all you need when it comes to car ownership. As such, they offer services such as an extended protection plan, key replacement services, and total loss protection. Caribou also offers a cosmetic car package that protects the body, windshield, rims, wheels, and more. 

Trustpilot reviews give Caribou an average star rating of 4.3 with more than 1,200 reviews. Positive reviews note that the staff is friendly and helpful, getting the job done quickly with a professional attitude.

Best for Personalized Service: RefiJet

Highlights

Why we chose it: RefiJet’s representatives take the time to get to know you to fully understand your situation, guiding you through the process in a quick and efficient manner, making them the best for personalized service. 

RefiJet wants to make sure you understand your loan options and can get through the application process quickly and efficiently. The process starts with an online form that yields a competitive offer. In our test, the offer was for more than the existing loan value. This is something that you will finalize with a representative when you speak with them. The final application takes just a few minutes to complete to get your loan approved and set for payout. 

RefiJet is relatively new on Trustpilot, with only 770 customer reviews on the site. It has an average of 4.8 stars, yielding positive results. Customers are pleased with the service and say that the process is smooth without any stress. 

Best for Quick Processing: OpenRoad Lending

Highlights

Why we chose it: OpenRoad Lending is the best for quick processing with an online application that can make a decision for your loan within seconds. 

OpenRoad Lending established a system that processes applications quickly, getting you an answer within minutes of completing the application. It tailors the terms of the loan to best fit your situation, whether that is reducing the interest rate or lowering monthly payments. OpenRoad Lending’s goal is to help you in the quickest way possible, starting with a simple online form that results in an offer that can be accepted with a quick application. 

OpenRoad Lending’s Trustpilot profile is solid with more than 2,000 reviews and an average star rating of 4.1. Borrowers are pleased with the simplicity of the process and how representatives didn’t waste time in processing loans.

What Is Auto Refinancing?

Auto refinancing takes one auto loan and reapplies for a new loan under better terms to help a borrower save money on interest, shorten the term, or extend the term for lower payments. Consumers complete a form that reviews their existing loan terms and get an offer that they can either accept or reject. If they accept it, they complete the formal application with a full credit check completed. In order to qualify for a new loan that pays off the existing loan, they must meet income and credit criteria. 

Can You Refinance a Car Loan?

Yes, it is possible to refinance a car loan, although not everyone will qualify. Those who meet the eligibility requirements are able to get better terms on the loan because they either have better credit than they did when the original loan was issued, they are able to save money because interest rates dropped, or they are extending the term to lower payments. Loan providers will often work with consumers who have poor or bad credit, although these candidates will have a higher interest rate on the loan because there is more risk to it.  

Should You Refinance Your Car Loan?

It is up to each borrower to determine if a car loan refinance is the best option for them. While lowering interest rates or lowering payments may be attractive, borrowers should consider any fees associated with refinancing the existing loan. These can make the cost of the loan more expensive and might not be in the borrower’s best interest. But if there are no fees for a new loan and no prepayment penalties to the existing loan, a refinanced loan can help people save money every month.

What Is the Process for Refinancing a Car Loan?

Let’s look at the process of refinancing a car loan: 

1. Consider your existing loan terms. Get the details about your existing loan, which include the interest rate, monthly payment, and payoff balance. Inquire about any prepayment penalties that may affect paying off your loan early. 
2. Get the estimated car value. Use a resource such as Edmunds’ online to get a sense of the value of your car. You may not qualify for a refinance if you owe more than the car’s current value. 
3. Apply with a lender for pre-approval. Complete an application to get a firm offer on new loan terms. A credit check run by the lender gives them insight into your payment history and the risk of the loan to determine an interest rate. 
4. Compare pre-approval offers. Get multiple quotes to see which lender will offer you the best loan terms. 
5. Decide on the length of the loan term. Set the timeframe of your loan. You may want to extend the time out to seven years to lower monthly payments or shorten it to complete the loan faster.  
6. Finalize the loan. Work with the chosen lender to finalize the loan and get funded to pay off the existing loan.  

How Soon Can You Refinance a Car Loan?

There is no set timeframe that says when you can refinance your loan. You can refinance immediately if the terms make sense. Often, it is wise to let interest rates drop or credit scores to rise before refinancing to get the best terms possible.

Auto Loan Refinance FAQs

Can you refinance a loan with bad credit?

It is possible to refinance an auto loan with bad credit and qualify for better rates. Many lenders will approve loans for those with FICO scores as low as 500. While these result in higher interest rates than those with good FICO scores, they can help save money by extending the term or taking advantage of declining interest rates.

What will it cost to refinance my car loan?

The cost to refinance your car loan will depend on the existing loan and the new loan terms. Check to see if there are any prepayment penalties on the existing loan and ask about any added fees on the new loan. Sometimes there is an application fee, but this isn’t always the case. 

Can I refinance if I owe more than my car is worth?

Lenders use the car as collateral for the loan and want to ensure its value is enough to cover the amount of the loan. It may be challenging to get a loan if you owe more than the car is worth. 

Can I get cash back when I refinance my car?

Some lenders will allow you to get cash back when refinancing the car. As long as the value of the car exceeds the loan value, this is an option you can explore.

Will I pay prepayment penalties to pay off my loan early?

While prepayment penalties were once a common thing, they aren’t anymore. Check with your existing lender to see if there is any penalty for paying off the loan early in a refinance. 

What is the lowest auto refinance rate right now? 

As of 2026, we found auto loan refinancing options with rates as low as 3.50%.

How We Chose the Best Auto Refinance Loans

We evaluated the best auto refinance companies and compared them to make it easier for you to choose the best one for your situation. It’s not always about who has the best rate; you may choose a lender based on its other loan terms or its reputation in the industry. Here’s how we evaluated the best lenders for you: 

• Rates: We looked for lenders that were transparent in pricing and gave offers after a short online application. Not every lender was completely transparent and those that were fared better than those who didn’t. 
• Credit score: Our review considered lenders who approved loans with a wide range of credit scores so that those with poor and bad credit could be serviced with new loans. 
• Customer satisfaction: We read online reviews to see what real customers had to say about the lenders. Those with positive reviews fared better than those with negative reviews.