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Key takeaways
- You may be able to refinance a car with a credit score of 580 or higher, but approval depends on more than your score.
- A credit score around 700 or above may put you in a stronger position to qualify for better rates and terms.
- Lenders may also review your income, debt-to-income ratio, payment history, loan balance, vehicle value, age, and mileage.
- You may be able to refinance with bad credit, but your options may be more limited and rates may be higher.
- Checking your rate through Caribou uses a soft credit pull, so it won’t affect your credit score.
- It may be worth improving your credit before refinancing if you’re close to a higher credit tier, but checking your options can still help you understand what’s available.
You may be able to refinance a car with a credit score of 580 or higher, but a higher score can help you qualify for better rates and terms. At Caribou, lenders typically look for a credit score of 580+, along with your income, payment history, debt, vehicle details, and current loan balance.
That doesn’t mean 580 guarantees approval. It means your credit score may be high enough for lenders to review your application. If your score is closer to 700 or above, you may be in a stronger position to qualify for a lower APR, depending on the rest of your financial profile.
What credit score do you need to refinance a car?
There’s no single credit score every lender requires to refinance a car. Requirements can vary by lender, state, vehicle, and loan details.
Here’s a general way to think about it:
| Credit score range | What it may mean for refinancing |
|---|---|
| Below 580 | It may be harder to qualify, and options may be limited. |
| 580–669 | You may qualify with some lenders, but rates may be higher. |
| 670–699 | You may have stronger approval odds and more competitive options. |
| 700+ | You may be in a better position to qualify for lower rates. |
| 740+ | You may be in a strong credit tier for more competitive offers. |
Credit score matters, but it’s not the only factor. Lenders may also review your income, debt-to-income ratio, loan-to-value ratio, payment history, vehicle age, mileage, and how much you still owe.
Is 580 a good enough credit score to refinance a car?
A 580 credit score may be enough to apply with some lenders, including through Caribou’s lending network. But approval is not guaranteed, and the offers you qualify for may depend on the rest of your application.
For example, a lender may feel more comfortable if you have steady income, a history of on-time payments, a manageable amount of debt, and a vehicle that meets age and mileage requirements. On the other hand, a low credit score, missed payments, high debt, or a car with very high mileage could make approval harder.
If your credit score is below 580, refinancing may still be worth researching, but your options may be more limited.
Is 700 a good credit score to refinance a car?
Yes. A credit score around 700 may put you in a stronger position to refinance a car, especially if the rest of your application is solid.
A 700+ score can show lenders that you’ve managed credit responsibly. That may help you qualify for better refinance offers, but it still doesn’t guarantee the lowest rate. Lenders usually look at the full picture, including:
- Your current loan balance
- Your vehicle’s value
- Your vehicle’s age and mileage
- Your income
- Your debt-to-income ratio
- Your payment history
- The term length you choose
- Lender and state requirements
The best refinance rates usually go to borrowers with excellent credit, low debt, steady income, newer vehicles, and a strong record of on-time payments.
Can you refinance a car with bad credit?
You may be able to refinance a car with bad credit, but it depends on the lender and your full financial profile.
Refinancing with bad credit can make sense if you qualify for a loan that improves your situation. For example, you may want to lower your monthly payment, reduce your APR, or change your loan term.
But it’s important to compare the full cost of the new loan, not just the monthly payment. A longer term can reduce your payment, but it may also increase the total interest you pay over time. Before you move forward, compare your current loan with the new offer and make sure the trade-off works for your budget.
What else do lenders check besides your credit score?
Lenders don’t usually approve or deny an auto refinance application based on credit score alone. They may also check:
Your payment history. A history of on-time payments can help show that you’re likely to repay the new loan.
Your income. Lenders want to see that you have enough income to manage the refinanced loan.
Your debt-to-income ratio. This compares your monthly debt payments with your income. Lower debt may help your application.
Your loan-to-value ratio. This compares how much you owe with how much your car is worth. If you owe much more than the car’s value, refinancing may be harder.
Your vehicle’s age and mileage. Many lenders have limits on how old a car can be or how many miles it can have.
Your loan balance. Some lenders set minimum and maximum loan amounts. At Caribou, lenders typically look for a loan balance between $7,500 and $85,000.
Time left on your loan. If your loan is almost paid off, refinancing may not save enough to be worth it.
Should you improve your credit before refinancing?
It depends on your goal.
You may want to apply sooner if your current car loan has a high APR, your credit has already improved, or you need a lower monthly payment. You may want to wait if your score is close to moving into a higher credit tier, you recently missed a payment, or you can pay down debt before applying.
Small changes can help, but bigger credit score improvements may matter more. For example, moving from poor to fair credit, or from fair to good credit, may have a bigger impact than a small score increase within the same range.
If you’re trying to strengthen your credit profile before applying, focus on the basics: pay bills on time, lower credit card balances, avoid taking on new debt, and check your credit report for errors.
Does checking your refinance rate hurt your credit?
Checking your rate through Caribou uses a soft credit pull, so it won’t affect your credit score.
If you choose an offer and continue with a full application, the lender may request a hard credit pull. A hard inquiry can cause a small, temporary dip in your score, but the impact is usually manageable if you keep making payments on time.
When does refinancing make sense?
Refinancing may make sense if it helps you lower your APR, reduce your monthly payment, adjust your loan term, or get a loan that better fits your budget.
It may be worth checking your options if:
- Your credit score has improved since you got your current car loan.
- Interest rates are lower than when you first borrowed.
- Your income or debt situation has improved.
- You want to lower your monthly payment.
- You want to see if you can pay less interest over time.
Refinancing may not be the right move if the new loan saves little money, adds too much time to your repayment schedule, or increases your total interest cost. The best option depends on your current loan, your new offer, and your financial goals.
Bottom line
You may be able to refinance a car with a credit score of 580 or higher, but a higher score can help you qualify for better rates and terms. A score around 700 or above may put you in a stronger position, especially if you also have steady income, manageable debt, a reliable payment history, and a vehicle that meets lender requirements.
The easiest way to know where you stand is to check your refinance options. With Caribou, you can check your rate with a soft credit pull, so it won’t affect your credit score.
FAQs: What credit score do you need to refinance a car?
What is the minimum credit score to refinance a car?
There’s no universal minimum credit score to refinance a car. At Caribou, lenders typically look for a credit score of 580 or higher, but approval depends on more than your score.
Can I refinance my car with a 580 credit score?
You may be able to refinance with a 580 credit score, but approval is not guaranteed. Lenders may also review your income, debt, payment history, vehicle value, mileage, and current loan balance.
Can I refinance my car with a 600 credit score?
Yes, you may be able to refinance with a 600 credit score. Your rate and approval odds will depend on the lender and the rest of your application.
Is 700 a good credit score to refinance a car?
Yes. A 700 credit score may help you qualify for more competitive refinance offers, especially if you have steady income, manageable debt, and a strong payment history.
What credit score gets the best auto refinance rate?
The best auto refinance rates usually go to borrowers with excellent credit, low debt, steady income, newer vehicles, and a proven history of on-time payments. A score of 700 or higher can help, but the strongest offers often go to borrowers in very good or excellent credit tiers.
Does refinancing a car hurt your credit score?
Refinancing may cause a small, temporary dip in your credit score if you move forward with a full application and the lender runs a hard credit pull. Checking your rate through Caribou uses a soft pull, so it won’t affect your credit score.
Should I improve my credit before refinancing?
You may want to improve your credit before refinancing if your score is close to a higher credit tier or if you can lower debt quickly. But if your current loan has a high APR or your budget needs relief, it may still be worth checking your options now.
Do lenders look at income when refinancing a car?
Yes. Lenders may review your income to make sure you can afford the new loan. They may also check your debt-to-income ratio, payment history, loan balance, and vehicle details.
