Most lenders want a credit score of 620 or higher to refinance a car, but the actual score that matters depends on the lender and the loan terms you're offered
There is no single "minimum" credit score for car refinancing that applies everywhere. Banks, credit unions, and online lenders each set their own thresholds. A score of 620 is common as a floor — below that, many mainstream lenders straightforward won't consider you. But a score of 700 or above typically unlocks better interest rates, while scores between 620 and 700 may get you approved at higher rates or with stricter terms.
The reason your score matters so much is that refinancing is a new loan. The lender is replacing your existing car loan with a new one, and they assess the risk of lending to you based on your credit history. A higher score signals that you've paid past debts on time; a lower score suggests you've missed payments or carried high debt. The lender uses that signal to decide whether to approve you and what interest rate to charge.
Your actual approval and rate depend on more than your score alone. Lenders also look at your debt-to-income ratio, your employment history, how much equity you have in the car, and the car's age and mileage. A score of 650 with stable income and a newer car may get you better terms than a score of 700 with high existing debt and an older vehicle.
Key Takeaways
- Most lenders require a credit score of at least 620 to refinance, though credit unions and some online lenders may work with scores as low as 580.
- Scores above 700 typically may have access to for the best interest rates; scores between 620 and 700 usually get approved but at higher rates.
- Your credit score is one factor lenders consider — they also review your income, existing debt, and the car's value and condition.
- Checking your credit report before you refinance can reveal errors or missed payments that may be lowering your score unnecessarily.
- If your score is below 620, waiting a few months to pay down debt or dispute errors may improve your chances of approval and lower rates.
How lenders use your credit score in refinancing decisions
When you refinance, you're asking a new lender to pay off your old loan and give you a new one. That new lender pulls your credit report and calculates your credit score to assess the risk. A higher score means you've demonstrated a pattern of paying debts on time; a lower score means you've had late payments, collections, or high debt relative to your income.
Lenders use credit scores as a shorthand for risk. A borrower with a 750 score has historically paid bills on time and kept debt manageable. A borrower with a 620 score may have had late payments in the past or currently carries a lot of debt. The lender prices that risk into the interest rate — the lower your score, the higher the rate you'll pay, or the more likely you'll be denied.
Your score also affects whether the lender will refinance at all. Some lenders have hard cutoffs: they won't lend to anyone below 650, period. Others are more flexible but charge much higher rates for lower scores. A few credit unions and online lenders specialize in lower-score borrowers but typically charge rates that may not save you money compared to your current loan.
Score ranges and what they typically mean for refinancing
Credit scores range from 300 to 850, but the ranges that matter for car refinancing fall into a few broad buckets. Understanding where you stand helps you know what to expect when you contact lenders.
| Credit Score Range | Typical Lender Response | Interest Rate Outlook |
|---|---|---|
| Below 580 | Most mainstream lenders decline; credit unions or specialized lenders may consider you | Very high rates or denial |
| 580–619 | Some credit unions and online lenders will work with you; banks usually decline | High rates, often not better than current loan |
| 620–669 | Most lenders will consider you; approval is likely but not may provide | Moderate rates; savings possible but not may provide |
| 670–739 | Strong approval odds; most lenders compete for your business | Good rates; meaningful savings likely |
| 740+ | Approval is standard; lenders offer their best terms | Best available rates; largest savings |
These ranges are not hard rules — different lenders weight credit scores differently, and some prioritize other factors like income or car value. But they give you a realistic sense of where you stand and what conversations with lenders might look like.
Other factors lenders examine alongside your credit score
Your credit score is important, but it's not the only thing lenders look at. A strong score can't overcome a very high debt-to-income ratio, and a moderate score paired with stable income and a newer car can still get you approved.
Lenders examine your debt-to-income ratio — the total of your monthly debt payments divided by your gross monthly income. Most want this ratio below 50 percent. If you earn $4,000 a month and already pay $1,500 in car loans, credit cards, and other debts, adding a new car payment might push you over that threshold, and the lender may decline or offer a smaller loan.
They also look at your employment history and income stability. A salaried job with the same employer for three years looks safer than a new gig or freelance income. Lenders want to see that you can reliably make the new payment.
The car itself matters too. Lenders check the vehicle's age, mileage, and current market value. A 2022 car with 30,000 miles is easier to refinance than a 2015 car with 150,000 miles, because the newer car holds more value and is less likely to break down. If your car is worth less than you owe on it (you're "underwater"), refinancing becomes harder or impossible.
What to do if your credit score is too low to refinance
If lenders are declining you or offering rates that don't save you money, you have a few options. The most straightforward is to wait and improve your score before refinancing.
Start by checking your credit report at annualcreditreport.com, the free source authorized by federal law. Look for errors — a late payment that wasn't yours, a debt you've already paid, or an account you never opened. Dispute errors directly with the credit bureau (Equifax, Experian, or TransUnion) and with the lender that reported the error. Corrections can take 30 to 45 days but can meaningfully raise your score.
If the negative items are accurate, focus on paying down existing debt. Paying down credit card balances is especially effective because it lowers your credit utilization — the percentage of your available credit you're using. Lenders view high utilization as risky. Bringing a $5,000 balance on a $10,000 card down to $2,000 can raise your score by 20 to 50 points in a few months.
Making all payments on time for the next few months also helps. Payment history is the largest factor in your credit score (35 percent), so a clean record going forward gradually offsets past problems. After three to six months of on-time payments and lower debt, your score may improve enough to refinance at a better rate.
Where to look for refinancing with a lower credit score
If you need to refinance now and your score is below 650, credit unions and online lenders are more likely to work with you than traditional banks.
Credit unions often have more flexible lending standards and may consider factors beyond your credit score — like membership tenure or employment. If you belong to a credit union, start there. If not, you may be able to join one through your employer, school, or a community organization.
Online lenders like LendingClub, Upgrade, and others specialize in borrowers with lower scores. They typically use alternative data (like bank account history) alongside credit scores. Rates are often higher than what you'd get with a strong score, but some online lenders beat traditional banks for lower-score borrowers.
Before you commit to any lender, get quotes from at least three. Each hard inquiry (when a lender pulls your credit) temporarily lowers your score by a few points, but multiple inquiries for the same type of loan (car refinancing) within 14 to 45 days typically count as a single inquiry. Compare the interest rate, loan term, and any fees. A lower rate that extends your loan by five years might not save you money overall.
How to check your credit score before refinancing
You can check your credit score for free through several sources. Your bank or credit card issuer often provides a free score through their website or app. Credit monitoring services like Credit Karma and NerdMoney offer free scores updated monthly. These scores are usually accurate enough to give you a sense of where you stand, though they may differ slightly from the score a lender sees.
The score you see at home is typically a VantageScore or educational score, not the exact FICO score a lender will use. Lenders often use industry-specific FICO scores — for auto refinancing, they typically use FICO Auto Score 8 or 9. These can differ from your general FICO score by 20 to 50 points. But if your free score is 650, you can reasonably expect a lender's score to be in a similar range.
Checking your own score does not hurt your credit. Only hard inquiries (when a lender pulls your credit) lower your score. Soft inquiries — when you check your own score or a lender pre-qualifies you — have no impact.
Frequently Asked Questions
Can I refinance with a credit score below 600?
Some credit unions and online lenders will work with scores below 600, but approval is not may provide and rates are typically very high. You may find that the new rate doesn't save you money compared to your current loan. Waiting a few months to improve your score usually results in better terms.
Will refinancing hurt my credit score?
Refinancing causes a small, temporary dip in your score when the lender pulls your credit (a hard inquiry). This dip usually recovers within a few months. Over time, refinancing to a lower rate and paying on time can actually improve your score by lowering your overall debt and demonstrating on-time payments.
What's the difference between the credit score I see online and the score a lender uses?
Free scores you see online are often educational scores or VantageScores, which use slightly different formulas than FICO scores. Lenders typically use FICO Auto Score, which may be 20 to 50 points higher or lower than your free score. The free score gives you a reasonable estimate, but the lender's score is what actually determines approval and rates.
If I'm denied for refinancing, can I reapply right away?
You can reapply, but each process triggers a hard inquiry that lowers your score slightly. If you were denied due to a low score, waiting 30 to 90 days and working to improve your score (paying down debt, disputing errors) gives you a better chance of approval next time. Multiple applications in a short period can make your score worse.
Does refinancing with a co-signer help if my score is low?
Yes. A co-signer with a higher credit score can improve your chances of approval and may help you get a lower rate. The co-signer is legally responsible for the loan if you don't pay, so they take on real risk. Make sure any co-signer understands the commitment before they agree.