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Auto loan refinancing with bad credit?

Nicholas Hinrichsen - Published: October 15, 2021

Times have been tough lately and lot's of clients approach us for auto loan refinancing with bad credit.
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There is no clear definition for what 'bad credit' means. Therefore, have a look at the table below for auto loan rates by credit tier:

Credit ScoreNew carUsed car
760+2.69%3.49%
700-7603.00%4.25%
650-7005.50%6.50%
600-6509.75%10.75%
550-60015.50%17.50%
Below 55022.00%22.00%


Even if you don't have excellent credit, you could qualify for refinancing.

  1. Got your loan at the dealership? That's true for 79% of all car shoppers and car dealers artificially increase your interest rate to make more money. In other words, the second you drove off the lot, you could have refinanced your car and saved money!
  2. You might still be unhappy about your credit score but if you've made your car payments, you may have improved your credit compared to when you bought the car! Making your payments is the best way to lower your payments because your rate is a function of your credit score. Even a small improvement can lead to a lower rate.
  3. With the CODVID-19 pandemic bringing our economy to a sudden halt, the FED decided to lower the interest rates and make cheaper capital available to Americans. As a result, interest rates dropped, which will give you a tailwind should you consider refinancing now.
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Haven't explored refinancing yet? Take a look at our exhaustive article about all the auto refinance companies and you will realize,
WithClutch.com is the only fully digital platform that lets car owners like you do so from the comfort of their own home. No need to set a foot in a bank or credit union. You can lower your rate or get cash in as little as 20 seconds.

Follow three simple steps to refinance your auto loan, get approved in seconds and save thousands in minutes.