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How to refinance my State Farm Bank auto loan?

State Farm Bank targets the segment of American car shoppers with good (i.e. prime) credit and we observed an average auto loan interest rate of 8% (within a range of +/- 4%). If you have a State Farm Bank auto loan and have not looked into refinancing your car loan yet, you should do so now!

State Farm Bank car loan rates vary a lot by credit score. Our State Farm Bank auto loan calculator can help you get a sense for how much you can expect to save from a State Farm Bank auto refinance.

Before going into more detail though, here a little background about State Farm Bank: State Farm is a big, nationwide insurance company founded 1922. In 1999, State Farm expanded its scope and started offering financial services such as mutual funds, banking and lending.

State Farm bank is 100% online. The lending division offers mortgages and auto loans. Neither of those products have taken significant market share from the existing mortgage and auto loan companies. Instead, State Farm bank is primarily an incremental product offering that diversifies the insurance business.

Published: June 12, 2020

Refinance your State Farm Bank auto loan


To lower your monthly payments on your State Farm Bank auto loan, you need to find a lender that can extend your used car loan term or offers you a lower rate before the loan is paid in full. Usually, lenders offer you a lower rate for one of two reasons:

  1. When you bought your car, the dealer marked up your rate. That's common for auto loan originations and to make more money
  2. You improved your credit over time and now qualify for a lower car payment and interest rate.

Both of these observations are the reason for why you can save a lot of money. You improved your credit with the credit bureaus from prime credit (i.e. between 680 and 720 on your credit report) to super prime credit (i.e. above 720), you're not facing any financial difficulties and therefore, your new lender will be likely one of the following ones:


You successfully got out of the prime credit segment (a FICO between 680 - 720 on your credit history) and moved into the super prime credit segment (FICO above 720). Credit Unions love super-prime members. These lenders have a community charter and are non-profits. Therefore, the rates are as low as they get.

In the following, we will walk you through the exact steps to pay off your State Farm Bank loan.

State Farm Bank loan payoff amount


First and foremost, we need to pull up your State Farm Bank loan payoff statement. The loan payoff statement is not your outstanding balance. Instead, the loan payoff statement summarizes the following data points:

  • your payoff amount (usually your loan amount balance plus a few small fees)
  • the due date until your payoff is valid to avoid late fees (usually 10 days from when you requested it)
  • the per-diem (how much of daily interest your loan accumulates)
  • your account number (the new lender needs that to payoff your loan)
  • the payoff address (the new lender needs to know where to mail the check to)

All the above information can be found on the official payoff statement. You have multiple payment options but first you need to locate the payoff statement from State Farm Bank's customer service reps:

  1. Call the State Farm Bank customer service phone number at 1-877-734-2265 and ask to be connected to the loan payoff department.
  2. Log into the online banking at Log In (https://www.statefarm.com, login on the right) and browse to the 'Loan Payoff' tab. You will be able to download a PDF.
  3. Do a three-way phone call with the new lender and a State Farm Bank customer service rep at 1-877-734-2265, which allows the new lender to ask State Farm Bank all the questions necessary to pay off your existing loan.

Should you plan to payoff your loan, you can overnight a check to this address:

State Farm Bank
2535 Daniels St
Madison WI 53718

We provided those addresses above because we always struggle to find a service provider's contact information. Moreover, due to COVID-19, waiting times for customer service reps might be longer than usual.

How soon can you refinance a State Farm Bank loan


You're eager to refinance your State Farm Bank loan? Great, you should absolutely work towards lowering your State Farm Bank payments through refinancing.

Dealers make most of their money on finance and insurance products. Therefore, there's a good chance that you can already save money through refinancing the day you drive off the lot. That said, you will save the biggest amount of money from refinancing after you made 12 to 18 payments. That's when you will notice the effect from improving your credit above and beyond good (i.e. prime) credit.

Take a look at our auto loan refinance calculator and the paragraph about negative vs. positive equity.

Savings from refinancing a State Farm Bank loan


We performed a study on the top 40 auto loan companies to refinance and found that the average State Farm Bank loan rate is around 8% (within a range of +/- 4%). If you made your payments for 6 / 12 / 18 consecutive months, you're guaranteed to be able to save money on your State Farm Bank loan.

Your new interest rate should be on the order of 4% or below. That means you will save $400 every year / $33 every month if your remaining loan balance is around $10,000 and you refinance. Usually, we see higher loan balances when refinancing our customers, e.g. around $15,000. If your loan balance is around $15,000 you will save $600 every year / $50 every month when you lower your rate by 4%.

We built an auto loan refinance calculator to help you get a quick overview of what your monthly payments could / should be based on your credit score and the term of the loan you choose. Just click on the link, select your vehicle (Year, Make and Model) and you'll be able to adjust a few parameters to get a sense for your future monthly payments.

For a guaranteed rate in less than 2 minutes, open WithClutch.com, enter your phone number, select your goal (e.g. 'Lower my monthly payment') and click on 'Apply Now'. Our process will not hurt your credit and you'll receive a firm and guaranteed rate with not more than 5 clicks. Should you have any further questions, check out our FAQs.

Things to know about State Farm Bank


If you currently have a loan with State Farm Bank, you most likely got the loan at the dealership where you bought your car and you can make your payments by clicking on Log In at https://www.statefarm.com.

79% of all Americans with auto loans get their auto loan at the dealership. People shop for cars, they don't shop for loans. As a result, car dealers have a lot of power and authority when it comes to giving car shoppers loans.

The challenge is this:

  1. the number 1 goal of a car dealer is to sell a car
  2. the number 2 goal of a car dealer is to sell the car at the highest possible margin

Considering the interests of the car dealer and how most car shoppers get their loans, no wonder Americans are overpaying on their interest rates, right?

As mentioned above, State Farm Bank is an auto loan company that specializes on the segment of Americans with good (i.e. prime) credit. We looked at reviews for State Farm Bank and found the following:

  • BBB: 1.1 out of 5 stars and 1,363 complaints
  • Wallethub: 3.7 out of 5 stars from 1,085 reviews
  • Glassdoor: 3.5 out of 5 stars from 9,464 reviews

Ever wondered if State Farm Bank treats everyone like you? Sadly, they do. Other loans you might have also qualified for could have been with one of the following auto loan companies:


If you bought your car at a Franchise Dealership, you may have qualified for a loan with one of the Captive Finance companies (i.e. the auto loan companies that are owned by the respective car brand), e.g.:


After you've made your first 6 / 12 / 18 payments, your chance to refinance your loan and lower your monthly payments has come. The challenge with refinancing is that most auto loan companies require you to visit their branch before they can give you any indication of how much money you will be saving. Fortunately, we can help with that.

State Farm Bank car loan refinance rates


We can help you get the following State Farm Bank refinance rates:

Credit Score New car Used car
760+ 2.69% 3.49%
700-760 3.00% 4.25%
650-700 5.50% 6.50%
600-650 9.75% 10.75%
550-600 15.50% 17.50%
Below 550 22.00% 22.00%

As mentioned above, State Farm Bank car loan rates vary a lot by credit score. We therefore recommend taking a look at our State Farm Bank auto loan calculator.

Refinance your State Farm Bank loan now



Haven't explored refinancing yet?
WithClutch.com is a 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.

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WithClutch, LLC

2120 E El Parque Dr

Tempe, AZ 85282