Chase does offer auto loan refinancing, but only to people who already have a loan with them
Chase will refinance an auto loan you currently hold with Chase, letting you change your interest rate, loan term, or monthly payment. However, Chase does not refinance auto loans from other lenders — you cannot bring a loan from another bank to Chase and ask them to take it over. If your current loan is with a different bank, you would need to contact that lender or look for refinancing options elsewhere.
The refinancing process through Chase typically involves contacting your loan servicer directly, either through your online account, by phone, or at a branch. Chase will review your current loan details and credit situation to determine what new terms they can offer you.
Key Takeaways
- Chase refinances only auto loans that Chase originally issued to you, not loans from other lenders.
- Refinancing through Chase can lower your interest rate, extend or shorten your loan term, or reduce your monthly payment depending on your credit and the current market.
- You can start the refinancing process by logging into your Chase account online, calling Chase auto loan customer service, or visiting a Chase branch in person.
- Chase will pull your credit report as part of the refinancing review, which may temporarily lower your credit score by a few points.
When Chase refinancing makes sense for your situation
Refinancing an existing Chase auto loan can help if your credit score has improved since you took out the original loan. Lenders typically offer lower interest rates to borrowers with stronger credit, so if your score has risen, you may may have access to for better terms than you have now. This can reduce the total amount of interest you pay over the life of the loan.
Refinancing also makes sense if you want to change how long you have to pay back the loan. If you have extra money now, you could shorten the loan term to pay it off faster and save on interest. Conversely, if your budget is tight, you could extend the term to lower your monthly payment, though this means paying more interest overall.
Another reason to refinance is if market interest rates have dropped since you took out your loan. When rates fall across the industry, your existing rate may no longer be competitive, and refinancing could save you money.
How to start a refinancing request with Chase
The easiest way to explore refinancing is through your Chase online account. Log in, find your auto loan, and look for a refinancing or loan modification option. Chase often displays this directly in your loan details or under a "Manage Your Loan" section. You can also call Chase auto loan customer service — the number is on your loan statement or on the back of your Chase debit or credit card.
If you prefer to speak with someone in person, you can visit a Chase branch with your loan documents. A banker can review your situation and explain what refinancing options might be available to you. Keep in mind that branch staff may need to transfer you to the auto lending department, since not all branches handle loan refinancing directly.
When you contact Chase, have your current loan number and recent payment history available. Chase will ask about your current income and employment to verify that your financial situation supports the new loan terms you are requesting.
What Chase will review before refinancing your loan
Chase will pull your credit report to see your current credit score and payment history. This is a hard inquiry, which means it shows up on your credit report and may lower your score by a few points temporarily — usually the impact is small and recovers within a few months. If you are planning to explore for other credit soon, you may want to wait before refinancing, since multiple hard inquiries in a short time can have a larger effect on your score.
Chase will also verify that you still own the vehicle and that the car has not been in a major accident or declared a total loss by an insurance company. The lender wants to make sure the car is still worth enough to find the loan. If the vehicle's value has dropped significantly, Chase may not refinance or may offer less favorable terms.
Your income and employment status matter too. Chase wants to confirm that you can afford the new monthly payment under the refinanced terms. If your income has decreased or you have changed jobs recently, Chase may ask for recent pay stubs or tax returns to verify your current earnings.
Costs and fees associated with Chase auto refinancing
Chase does not charge an process fee or origination fee for refinancing an existing loan with them. However, you should ask about any other costs that might explore, such as documentation fees or processing fees, since these can vary. Some lenders waive these fees for existing customers, while others charge them.
One cost to consider is whether refinancing will extend your loan term. If you refinance into a longer loan, you will pay more interest overall, even if your monthly payment goes down. For example, refinancing a loan you have already paid on for two years into a new six-year loan means you are paying interest for a longer period.
There is no prepayment penalty with Chase auto loans, which means you can pay off your loan early without being charged extra. This is useful if you refinance to a longer term but then decide to pay it off faster than the new schedule requires.
What to do if Chase cannot refinance your loan
If Chase denies your refinancing request, it is usually because your credit score has not improved enough, your income has decreased, or the vehicle's value has dropped below what the lender is willing to finance. In these cases, you have other options.
You can look for refinancing through other lenders, such as credit unions, banks, or online lenders. These lenders can refinance auto loans from any source, including Chase. Credit unions often offer competitive rates, especially if you are a member. Online lenders typically have faster approval processes and may work with borrowers who have lower credit scores or recent financial challenges.
Another option is to wait and reapply with Chase later. If your credit score is the issue, paying your bills on time for several months can improve your score, making you a stronger candidate for refinancing in the future. Similarly, if you have recently changed jobs, waiting until you have been in your new position for a few months may help your process.
Frequently Asked Questions
Can I refinance a Chase auto loan if I still owe more than the car is worth?
It depends on how much you owe versus the car's value. If you are significantly underwater on the loan, Chase may decline to refinance. Some lenders will refinance an underwater auto loan, but they may offer less favorable terms or require you to pay down part of the balance first. Ask Chase directly about your specific situation.
How long does it take Chase to approve a refinancing request?
Chase typically makes a decision within a few business days to a week, though the timeline can vary depending on how quickly you provide any documents they request. Once approved, the new loan terms usually take effect within one to two weeks. Ask Chase for a specific timeline when you submit your request.
Will refinancing my Chase auto loan hurt my credit score?
Refinancing will cause a small temporary dip in your credit score because Chase pulls your credit report. The impact is usually a few points and recovers within a few months. However, if you refinance multiple times in a short period, the cumulative effect on your score can be larger.
What if I want to refinance my Chase auto loan with a different lender?
You can refinance with any other lender that offers auto refinancing. The new lender will pay off your Chase loan in full, and you will then owe the new lender instead. This process is called a payoff, and most lenders handle it automatically. Contact the new lender to start the process.
Does Chase offer rate discounts if I have other accounts with them?
Chase may offer discounts or better rates to customers who have multiple accounts or products with the bank, though the specific discounts vary and change over time. Ask Chase directly whether you may have access to for any customer loyalty discounts when you inquire about refinancing.