Refinancing a car involves replacing an existing loan contract on your car with a newer one with different terms. In order to apply for refinancing, you will need to meet your lender’s requirements. If you are wondering, “how many times can I refinance my car” read on to find out the number of times a car can be refinanced and what you will need to apply for refinancing.
How Many Times Can I Refinance My Car?
Legally, there is absolutely no limit on how many times a car can be refinanced. However, you will need to make your lender agree every time you want to refinance your car. This means that your loan and your car need to meet a certain credit score and a set of minimum standards to apply for refinancing.
However, despite meeting the lender’s requirements, a lender could still say no if you have already refinanced your car several times. They may see you as a red flag and decide not to let you refinance your car loan. They are in the business to make money, and if they have any doubts about your ability to pay back the loan amount, they could say no.
But don’t worry. We will tell you the ideal way to refinance your car and the common requirements to refinance your car loan.
How to Refinance Your Car
If you are planning on refinancing your car and have done it in the past, you may be looking to lower your car payments. Everyone who applies for refinancing is looking to get their monthly payments lowered by extending their loan period or by lowering their interest rates.
The best way to refinance your car is by reducing your interest rate. As a result, you will be able to save more money on your car loan. If you are someone whose credit score has increased since you took the car loan, you can qualify to get a lower interest rate.
Here’s what most lenders require for refinancing your car loan:
- >100,000 miles on car
- At least a year old car loan
- Regular monthly payments
- Good credit score
- Loan amount shouldn’t be too big or too small
- No negative equity on the car
- A newer car model (less than 10 years old)
However, do note that even if you do meet these requirements, your lender could still choose to say no.
Final Thoughts
To answer your question, “how many times can I refinance my car” there is basically no limit on how many times you can refinance your car. You can apply for refinancing unlimited times, but that does not mean that your lender would always agree. Moreover, refinancing your car loan repeatedly could mean that you will keep paying for a longer period for the same car. We recommend taking all of these factors into account and deciding accordingly.