When you should refinance your car loan
- You need to change your monthly payment. ...
- Your credit score increased. ...
- You financed through a dealership. ...
- You have positive equity in your car. ...
- You have issues with your current lender. ...
- Interest rates dropped. ...
- Your current lender charges a prepayment penalty.
Does refinancing hurt your credit?
Whenever you refinance a loan, your credit score will decline temporarily, not only because of the hard inquiry on your credit report, but also because you are taking on a new loan and haven't yet proven your ability to repay it.