Refinancing a car loan can be one of the smartest ways to reduce your monthly payments, especially if your credit has improved or you’re simply overpaying on interest. But what if your credit isn’t perfect?
Good news: there are top-rated auto refinance companies in 2025 that specialize in helping people with bad credit.
In this guide, we’ll break down the best car refinance lenders for bad credit, how the process works, what you need to qualify, and how to get the best possible terms.
Top 7 Car Refinance Companies for Bad Credit in 2025
1. Auto Credit Express
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Best For: Subprime borrowers with credit scores below 600
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Minimum Credit Score: No minimum required
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Loan Types: Refinancing, lease buyouts, bad credit auto loans
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Pros:
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Specializes in bad credit and bankruptcy
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Fast online application
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Cons: Works with a network, so terms vary by lender
2. RefiJet
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Best For: People who want help navigating multiple refinance options
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Credit Range: 500+
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Features:
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Dedicated loan consultants
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Accepts applicants with past bankruptcies
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Co-borrower option available
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Benefits: May help lower your APR and extend loan terms for affordability
3. myAutoloan
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Best For: Comparing multiple refinance offers in one place
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Minimum Credit Score: 575
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Turnaround Time: Prequalified offers in minutes
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Highlights:
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Works with nationwide lenders
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Useful loan calculators
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Drawback: Lender rates and eligibility vary by state
4. Capital One Auto Refinance
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Reputation: Trusted national bank with flexible underwriting
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Minimum Credit Score: Typically 540–580
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Loan Amounts: $7,500 – $50,000
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Key Feature: Pre-qualification with a soft credit check
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Limitations: Vehicle and mileage restrictions may apply
5. LendingClub
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Best For: Peer-to-peer auto refinancing
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Credit Range: Accepts credit scores as low as 510
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Unique Angle: May offer more flexible terms through individual investors
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Digital Tools: Fast approval, no prepayment penalties
6. OpenRoad Lending
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Specialization: Bad credit auto refinance
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Credit Score Range: 500+
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Advantages:
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Average savings of $100+/month
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Multiple refinance options
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Military discounts available
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Cons: Higher interest rates for very poor credit
7. LightStream (by Truist)
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Ideal For: Borrowers with fair-to-good credit improving their finances
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Credit Needed: 660+ typically, but flexible for co-applicants
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Perks:
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No fees
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Same-day funding
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Low fixed rates for qualified borrowers
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What Is Auto Loan Refinancing?
Auto loan refinancing means replacing your current loan with a new one—ideally at a lower interest rate, a longer term, or both.
Benefits:
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Lower monthly payments
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Reduce total interest paid
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Remove or add co-borrowers
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Adjust loan term to fit your financial goals
Even with a lower credit score, you might qualify if:
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You've been making on-time payments
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Your loan is at least 6–12 months old
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Your car has value and isn’t too old or high mileage
Tips to Refinance with Bad Credit in 2025
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Check Your Credit Report – Make sure there are no errors dragging your score down.
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Shop Around – Compare offers from multiple lenders before accepting one.
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Apply with a Co-signer – This can help you secure a lower rate.
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Improve Your Credit First – Even a 20–30 point increase can unlock better rates.
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Know Your Car’s Value – Lenders often have vehicle age/mileage limits.
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Prequalify When Possible – Look for lenders offering soft credit checks.
Requirements for Auto Loan Refinancing (Even with Bad Credit)
Most lenders look for:
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Proof of income (pay stubs, bank statements)
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A steady job or income source
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A car that’s newer than 10 years with fewer than 150,000 miles
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At least 6–12 months left on your current loan
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Current loan balance that’s not underwater
You Can Refinance with Bad Credit
Refinancing a car loan with bad credit may seem tough, but it’s possible — and potentially life-changing for your finances.
The best car refinance companies for bad credit in 2025 offer flexible terms, fast applications, and personal guidance to help you find a deal that fits your budget. With a little preparation, you can lower your interest rate, reduce your monthly payments, and even pay off your loan sooner.
