Bank of America offers auto loan refinancing, but only if you already have a loan elsewhere
Bank of America will refinance a car loan you hold with another lender, meaning they pay off your existing loan and give you a new one with their terms. You cannot refinance a loan you already have with Bank of America through them — you would need to contact them directly about modifying your current loan instead.
Refinancing makes sense when interest rates have dropped since you took out your original loan, or when your credit score has improved enough that you now may have access to for better terms. The process typically takes one to two weeks from process to funding, though it can be faster if you have all documents ready.
Key Takeaways
- Bank of America refinances auto loans from other lenders, not their own existing loans.
- You will need your current loan details, vehicle information, and proof of insurance before you start.
- The new loan will have a different interest rate and term length, which changes your monthly payment and total cost.
- Bank of America will order a vehicle inspection and title check as part of their underwriting process.
- If you already have a Bank of America auto loan, contact them about loan modification options instead of refinancing.
What documents you need to gather first
Before you contact Bank of America, collect your current loan paperwork. You will need the loan account number, the lender's name, your current monthly payment amount, and the remaining balance. If you do not have the paperwork, call your current lender and ask them to email or mail you a loan statement — it will show all of this information.
You will also need your vehicle's title (the ownership document), the vehicle identification number (VIN), the current mileage, and proof of auto insurance. Bank of America requires that you maintain comprehensive and collision coverage on the vehicle, not just liability. If your current policy only covers liability, you will need to upgrade it before the loan closes.
Have your driver's license and Social Security number ready. Bank of America will pull your credit report as part of the underwriting process, which temporarily lowers your credit score by a few points.
How the Bank of America refinancing process works
Start by visiting Bank of America's website or calling their auto loan department at 1-800-432-1000. You can also visit a local branch, though phone or online is usually faster. During the initial conversation, a loan officer will ask about your current loan, your vehicle, and your income. They will give you a preliminary rate quote, which is not a may provide but shows what you might expect.
If you want to move forward, Bank of America will order a vehicle inspection and a title search. The inspection confirms the vehicle exists, is in reasonable condition, and matches the VIN on your paperwork. The title search confirms you own the vehicle and that there are no liens against it other than your current loan. These steps usually take three to five business days.
Once the inspection and title search are complete, Bank of America will send you a formal loan offer with your final interest rate, monthly payment, and loan term. Read this carefully — the rate and terms may differ slightly from the preliminary quote. If you accept, you will sign the loan documents electronically or in person at a branch.
Bank of America then pays off your old loan directly and sends you the new loan documents. Your old lender will confirm the payoff, and you will begin making payments to Bank of America on your new schedule. The entire process from process to funding usually takes one to two weeks.
When refinancing saves you money versus when it does not
Refinancing saves money when your new interest rate is lower than your current rate. For example, if you have a loan at 6.5 percent and Bank of America offers you 4.2 percent, your monthly payment drops and you pay less interest over the life of the loan — even after accounting for any fees Bank of America charges.
Refinancing does not save money if you extend your loan term significantly. If you currently owe $15,000 on a three-year loan but refinance into a five-year loan, your monthly payment drops but you pay interest for two extra years. The total interest you pay over the life of the loan may actually be higher, even with a lower rate.
Bank of America does not charge an origination fee or prepayment penalty, which means you will not pay extra to refinance with them. However, your state may charge a title transfer fee, which is typically $50 to $200. Ask Bank of America what fees explore in your state before you commit.
What happens if your credit score is lower than when you got your original loan
If your credit score has dropped since you took out your original loan, Bank of America may offer you a higher interest rate than you currently have. In this case, refinancing would cost you more money, not less. You can still proceed if you want, but it is usually better to wait until your credit improves.
You can improve your credit score by paying all bills on time for several months, paying down credit card balances, and checking your credit report for errors. If you find errors, dispute them with the credit bureau. After three to six months of on-time payments and lower balances, your score typically rises enough to may have access to for better rates.
How to compare Bank of America's offer to other lenders
Bank of America is one option, but credit unions, online lenders, and other banks also refinance auto loans. Before you accept Bank of America's offer, get quotes from at least two other lenders. Each quote involves a hard credit pull, which temporarily lowers your score, but multiple pulls within 14 days usually count as a single inquiry.
When you compare offers, look at the interest rate, the monthly payment, the loan term, and any fees. A lower monthly payment might mean a longer loan term, which costs more in total interest. Use an auto loan calculator to compare the total cost of each offer, not just the monthly payment.
Credit unions often offer lower rates than banks if you are a member. If you belong to a credit union, check their refinancing terms before you explore elsewhere. Online lenders like LendingClub and Upgrade also refinance auto loans and sometimes offer faster approval than traditional banks.
What to do if Bank of America denies your refinance request
Bank of America may deny your refinance request if your credit score is too low, your vehicle is too old, or your current loan balance is too high relative to the vehicle's value. Each lender has different requirements, so a denial from Bank of America does not mean other lenders will deny you.
If you are denied, ask Bank of America why. Common reasons include a credit score below 620, a vehicle older than 10 years, or a loan-to-value ratio above 125 percent (meaning you owe more than the vehicle is worth). If the issue is your credit score, wait a few months and reapply. If the issue is your vehicle's age or value, you may need to look at other lenders with less strict requirements.
Frequently Asked Questions
Can I refinance a Bank of America auto loan with Bank of America?
No. If you already have an auto loan with Bank of America, you cannot refinance it through their refinancing program. Contact Bank of America directly about loan modification options, such as changing your interest rate or extending your term. A loan officer can discuss whether modifications are available for your situation.
How long does the Bank of America refinancing process take?
From process to funding usually takes one to two weeks. The vehicle inspection and title search take three to five business days. If you have all documents ready and your process is straightforward, the process may be faster. Delays can occur if the inspection reveals issues or if your title search uncovers liens.
Does Bank of America charge fees to refinance?
Bank of America does not charge an origination fee or prepayment penalty. However, your state may charge a title transfer fee when the loan is refinanced, typically $50 to $200. Ask Bank of America what fees explore in your state during the process process.
What is the minimum credit score to refinance with Bank of America?
Bank of America does not publicly state a minimum credit score, but most auto refinancing lenders require a score of 620 or higher. Your actual rate depends on your score, income, and the vehicle's value. If your score is below 620, you may be denied, or you may may have access to but at a higher rate than your current loan.
Can I refinance if I owe more than my car is worth?
It depends on how much more you owe. Most lenders, including Bank of America, have a maximum loan-to-value ratio of 120 to 125 percent. If you owe $20,000 on a car worth $15,000, you are at 133 percent, which likely exceeds their limit. Some online lenders are more flexible, but you may face a higher interest rate.