Best Bad Credit Auto Refinance Companies in July 2026
Ally accepts scores as low as 520, offers easy loan management and doesn’t charge doc fees, making it a strong choice for bad credit refinancing
Advertising Disclosures
Loading Disclosures…
- The lenders on this list accept scores in the 400s, so it is possible to refinance a car with bad credit.
- Comparing multiple offers when you have bad credit is especially helpful because it helps you cast a wider net, since every lender has different approval criteria.
- Refinancing with bad credit may lower your monthly payment, but it will not always save you money. Compare the APR, fees, loan term and total cost before choosing an offer.
| Lender | User rating | Best for | Starting APR | Term | Amount | |
|---|---|---|---|---|---|---|
|
Bad credit car refinancing overall | 5.69% | 36 to 84 months |
$7.5k – $100k |
||
|
Lowest credit score minimum | 6.99% | 48 to 84 months |
$10k – $100k |
||
|
Fast process | 5.49% | 36 to 84 months |
$7.5k – $100k |
||
|
Great customer service | 4.29% | 24 to 96 months |
$5k – $150k |
||
|
Refinancing older cars | 4.29% | 24 to 84 months | Starting at $8k |
Read more about how we made our picks for the best bad credit auto refinance loans.
Our top picks for auto refinancing with bad credit
Best for: Bad credit car refinancing overall – Ally
- Starting APR
- 5.69%
- Offers payment extensions in case of financial hardship
- Can pay via text
- No doc fees
- Free FICO Scores
- Not available in Nevada, Vermont or Washington, D.C.
- Not much info available about odometer and model year restrictions
If you hit a financial snag, Ally Bank may be able to lend a hand through payment extensions or loan modification. These types of benefits can help you protect your credit, which you may be in the process of building. You can even track your progress, as Ally Bank offers free access to your FICO Score.
Ally Bank also makes it easy to make your payments. Along with more common options like autopay and online payments, Ally Bank also has pay-by-text. After opting in, respond with “PAY” to make your payment when you get your monthly bill text reminder.
You don’t have to be a current account holder to refinance with Ally, although it won’t refinance its own car loans. Ally Bank is available in most, but not all, states.
To refinance your auto loan with Ally Bank, you and your car must meet the requirements below:
- Credit score: 520+
- Monthly income: $2,000+
- Citizenship: U.S. citizen, resident alien or nonresident aliens currently living in the U.S.
- Residency: Not live in Nevada, Vermont or Washington, D.C.
- Car requirements: Cannot be used for business purposes or have a branded or salvage title, unrepaired comprehensive or collision damage, or more than one lien; must have been financed more than four months ago
Best for: Lowest credit score minimum – GM Financial
- Starting APR
- 6.99%
- One of the lowest minimum credit score requirements on the market
- No doc fees
- Refinances almost all makes and models
- May have to wait a day to find out if you’re approved
- Car must be six years old or newer (some lenders accept older vehicles)
- Not available in all states
GM Financial might be known for dealership financing, but this direct lender also offers refinancing for most makes and models. Borrowers only need a 450+ credit score to qualify.
You might have to wait a day to find out if you’re approved for GM Financial. This is slower than many online lenders and marketplaces, where near-instant decisions can be common.
Also, your car must be six years old or newer to qualify. So while GM Financial has lower credit score requirements, it has stricter vehicle requirements.
To refinance your auto loan with GM Financial, you and your car must meet the following requirements:
- Credit score: 450+
- Monthly income: $1,800+
- Car age: Six model years or newer
- Odometer reading: Up to 100,000 miles
- Residency: Not live in Alaska, Hawaii, Illinois, Kansas, Mississippi, Montana, Nevada, New Mexico, Oregon, Washington, D.C., or Wyoming
Best for: A fast process – OpenRoad
- Starting APR
- 5.49%
- Approval decisions within minutes
- Can have old loan paid off within seven to 10 business days
- Very low minimum credit score requirements
- Some loans have a doc fee ($0 to $299)
- Can’t be self-employed
- Customer service isn’t available on weekends
OpenRoad Lending is a loan marketplace. Instead of issuing loans itself, it helps connect borrowers to partner lenders. Some of OpenRoad Lending’s partners work with lower scores. If you have a score of at least 460, you could qualify for refinancing.
Most applicants receive an approval decision within a minute of submitting their application to OpenRoad Lending. The entire process could be completed within a week.
But with convenience can come doc fees — in some cases, up to $299. Doc fees are usually folded into your refinance loan, where they will accrue interest.
To qualify for refinancing through OpenRoad Lending, you’ll need to meet the following criteria:
- Credit score: 460+
- Income: $1,500+ monthly (income from ride-sharing services or self-employment doesn’t qualify)
- Car requirements: Must be eight model years old or newer and have 140,000 miles or less. Can’t be a commercial car, motorcycle, recreational vehicle (RV), Oldsmobile, Daewoo, Smart Car, Isuzu or truck larger than 3/4 ton. It must be a car that’s still being manufactured.
Best for: Great customer service – RefiJet
- Starting APR
- 4.29%
- Has a nearly perfect recommendation rating from LendingTree users
- Offers expert assistance from a personal finance expert
- Fills out some of the paperwork for you to make for a seamless transition between lenders
- Charges a $495 doc fee
- Lackluster mobile app reviews
Another loan marketplace, RefiJet works within a network of lenders to help people find auto refinance loans. But it goes one step further. For a more personalized experience, you get to choose your own agent before checking rates.
After it helps you find a loan, it will also handle the paperwork with your new lender and update your title. Overall, RefiJet earns strong marks from LendingTree users, with 98% recommending the company.
With that in mind, doc fees can be common with marketplaces, RefiJet included. It charges a $495 doc fee.
To qualify for a RefiJet auto refinance loan, you’ll need to meet these requirements:
- Credit score: 500+
- Minimum income: $1,900 single or $2,200 joint; must have a job or verifiable source of income
- Other credit considerations: Recent car payments must have been made on time
- Car restrictions: Must be less than 10 years old, have under 150,000 miles and at least $5,000 remaining on current loan
Best for: Refinancing older cars – Tresl
- Starting APR
- 4.29%
- Refinances cars up to 12 years old
- Get walked through the process by an advisor
- Manages documents for you
- Charges doc fee of $225 – $495
- No mobile app
Not all cars can be refinanced. Lenders typically have criteria that a car must meet in order to be eligible. Vehicle age is one of the most common. Often, eight or 10 years is the oldest a car can be and still qualify.
Loan marketplace Tresl accepts vehicles up to 12 years old. Flexible vehicle requirements like these can be especially valuable if you have bad credit, since both your credit profile and your car’s age can affect your approval odds.
All loans obtained through Tresl come with a doc fee of $225 – $495. Tresl doesn’t have a mobile app, though the lender you choose through the marketplace might.
To refinance your car using the Tresl marketplace, you must meet the following criteria:
- Credit score: 500+
- Annual income: $24,000+
- Car age: 12 years old or newer
Can you refinance a car with bad credit?
Yes, it’s still possible to refinance your car if you have bad credit. In 2025, LendingTree users with credit scores under 580 received an average of four auto refinance offers through our marketplace. Among those who received an offer, the average credit score was 553.
But qualifying doesn’t guarantee that you’ll get a lower rate than what you have on your current car loan. Car refinance rates don’t tend to be competitive until you have good credit (a 670+ FICO Score).
Even so, you still might save. It depends on how much you’re paying now, whether you’ve improved your credit since taking out your current loan, and what you qualify for today. You just might need to do some extra shopping around to find the best auto refinance lender for your specific situation.
Can refinancing your car still save money if you have bad credit?
Most auto refinance lenders advertise only their starting annual percentage rates (APRs). This isn’t very helpful when you have bad credit, since the lowest rates go to borrowers with the best credit.
Below you’ll find the car refinance rates users were offered on auto refinance loans through LendingTree, based on credit score. Find your credit tier to get an estimate of what you might qualify for.
We’ve also included the average amount offered. Generally, approval is easier with smaller loans, so this benchmark can help you better understand your chances. However, how much you request depends on how much you still owe on your car.
| Credit tier | Average APR | Average amount | Average term |
|---|---|---|---|
| Excellent (800 and above) | 6.30% | $33,249 | 67 months |
| Very good (740-799) | 6.48% | $35,892 | 66 months |
| Good (670-739) | 7.50% | $30,196 | 66 months |
| Fair (580-669) | 10.10% | $29,129 | 66 months |
| Poor (under 580) | 13.38% | $27,337 | 67 months |
Should you refinance your car if you have bad credit?
Even if you have bad credit, you can still benefit from refinancing if you’ve improved your score or financial situation since first financing your car. Knowing when to refinance your car is just as important as knowing where to do it.
Refinancing may make sense if…
- Your credit score has recently improved
- Your car is worth more than you owe
- Your monthly payment is hard to afford
- You can add a cosigner with good credit
Think twice before refinancing if…
- Your credit score has recently dropped
- Rates have gone up since you bought your car
- You’re within a year or two of paying off your loan
- The new loan would cost more overall
Some auto refinance lenders will let you extend your loan term beyond the time you have left on your current auto loan. This usually results in lower monthly payments; however, unless you pay off your refi loan early, you’ll pay more total interest and be in debt longer.
Why a loan marketplace can be a smart move with bad credit
Refinancing with bad credit can feel like a guessing game. Every lender has its own eligibility criteria, and it’s not always clear which may be willing to work with your credit profile.
A loan marketplace like LendingTree can help you see the possibilities without all the legwork. Instead of trying to guess which lenders you might qualify for, a marketplace puts you in contact with an entire lender network so you can explore your options and see what’s available.
Comparing your options with LendingTree
Tell us what you need
Take two minutes to tell us about your current auto loan and what you’re looking for in a refinance. We’ll take care of the rest. It’s free, simple and secure.
Compare your offers
Review your options side by side to see whether you could save money, lower your monthly payment or find a loan that better fits your needs.
Get refinanced
Choose the offer that works best for you, finish the lender’s process and, if approved, finalize your new auto loan.
Can you refinance in these situations?
Lenders look at more than your credit score when you apply for refinancing. It’s true that credit is important, but the car you drive and your current financial situation matter, too.
Is refinancing possible? Sometimes, but you may need to make an extra payment and pay down your current loan balance first.
If you owe more than your car is currently worth, then you’re in an upside-down car loan. Usually, you must pay the difference between what you owe and your vehicle’s value before you can refinance. Some lenders will let you roll this into your refinance loan, but this will drive up interest costs.
Is refinancing possible? Maybe, but it depends on the age of your car.
Your car serves as collateral when you refinance your loan. If your car isn’t worth as much, then the lender won’t get as much if they have to repossess and sell it. Most lenders stop offering refinancing once a vehicle is around eight to 10 model years old, due to depreciation.
Is refinancing possible? Not usually, until you get caught up (and even then, you might still be denied).
Missed payments significantly hurt your credit score and are a negative signal to lenders. You might be able to refinance once you get current, but you’ll have an easier time after you’ve made some consecutive on-time payments.
Is refinancing possible? It depends, as not all lenders will refinance this type of loan. Also, check your buy here, pay here loan terms for prepayment penalties.
Although buy here, pay here (BHPH) loans can get you out of a pinch, you should try to refinance with a more traditional lender ASAP. Just know that some lenders will not refinance BHPH loans. BHPH lenders typically don’t report on-time payments to the credit bureaus, which means refinance lenders can’t check your payment history.
What to do if refinancing won’t save you money right now
Whether you don’t qualify for lower rates or don’t qualify at all, refinancing won’t always work out. That doesn’t mean it should be off the table forever. With some time and patience, there are steps you can take now to boost your chances later.
Wait and improve your credit score
Small steps like consistent on-time payments and limiting the number of loan applications you submit can improve your credit.
Continue building good financial habits and periodically check your credit score. Try again once you’ve reached “fair credit” (580+), although waiting until you have good credit will likely help you save more.
Pay down some of your current car loan
The loan-to-value (LTV) ratio measures how much your car is worth compared to how much you owe. A lower LTV means you have more equity in your car, and rates tend to be lower the more equity you have.
Continue making your payments to improve your credit score and lower your LTV. Making a large payment a couple of months before you apply is also a good strategy for this.
To find your LTV, divide your loan balance by your car’s value. Then, multiply the result by 100. Each lender has its own LTV guidelines, but lower is better.
Consider trading in
If you’re in a car loan that you can’t afford, you’re not alone. The average new car payment is closing in on $1,000 a month ($770 in the first quarter of 2026).
If making your car payment is a significant and consistent struggle, trading your car in for a less expensive model might be the right choice.
If you’re trying to refinance because you can’t keep up with your car loan, contact your current lender right away. You may be able to lower your monthly payments by extending your loan term. This means you’ll pay more interest, but it may be worth it if you’re able to keep your car.
How we chose the best bad credit car refinancing
We reviewed more than 29 lenders and loan marketplaces that offer auto refinance loans to determine the overall best five refinance car loans for bad credit.
According to our systematic review process, the best auto refinance loans come from Ally Bank, GM Financial, OpenRoad Lending, RefiJet and Tresl.
To make our list, lenders must offer benefits that help it stand out from competitors, like high customer LendingTree user scores and a seamless refinance experience. From there, we prioritize lenders based on the following factors:
-
Accessibility:
We chose lenders with auto loans that are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding, and easier and more transparent prequalification, preapproval and application processes.
-
Rates and terms:
We prioritize lenders with more competitive starting fixed rates, fewer fees, and greater options for repayment terms, loan amounts and APR discounts.
-
Repayment experience:
For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.
LendingTree reviews and fact-checks our top lender picks on a monthly basis. We partner with dozens of auto lenders, but partners and nonpartners receive equal treatment in our systematic scoring and review process.
Read more about our editorial guidelines and standards.
Frequently asked questions
The amount that refinancing can save you depends on your current rate, the rate you qualify for now and the loan term you choose on your refi loan. Our car refinance calculator can help you see how much you could save, based on your current loan and credit details.
Refinancing your car affects your credit at different times, in different ways. Applying typically requires a hard credit hit. This will probably drop your score by a handful of points, but the effect is temporary. You will also be replacing an older loan with a new one, which may drop the average age of your accounts.
However, payment history is the most significant credit scoring factor, making up 35% of your FICO Score. Responsibly managing your auto refi loan can improve your credit over time.
Many auto refinance lenders and marketplaces offer additional products, such as gap insurance and vehicle warranties. It’s up to you whether this coverage is worth it – read the fine print for exclusions and understand the cost. Add-ons are usually rolled into your loan, where they will accrue interest.
If you’re interested in gap insurance, contact your insurance company. Many carriers can add it to your policy for a small premium.