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5 Best Auto Refinance Loans of 2022

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Best Auto Refinance Loans in the USA

In this guide we will talk about the Best Auto Refinance Loans in the USA; and why we chose them as our favorites. Remember that refinancing your car loan can help you lower your interest rate. In addition, you can also see a reduction in monthly payments and the total amount of interest you pay for your credit.

Now, the best auto refinances loans have competitive rates and low minimum loan amounts. They also have flexible credit score requirements and payment terms. We advise you to find a reputable lender with an easy application process.

Do you want to know more details? Keep reading until the end and don’t miss a thing…

 

Best Auto Refinance Loans of 2022

It’s always a good idea to think about refinancing your car loan if your credit score has improved since you first took out the loan. A higher credit score can help you qualify for better interest rates, saving you considerable money over time.

To make your auto loan refinance a success, it’s important to choose a bank that meets your needs and fits your lifestyle. Therefore, before refinancing you should consider certain important aspects such as Customer service, reputation, application process, interest rates, and required credit score.

Also, you should consider what the vehicle restrictions are. Remember that while some banks and lenders work with all cars, others have certain restrictions when it comes to vehicle type, age, and mileage.

Now, then, we leave you with our selection of the Best Auto Refinance Loans 2022:

  1. Bank of America
  2. Capital one
  3. USA
  4. LightStream
  5. Consumers Credit Union

 

 

  1. Bank of America: Our #1 Overall Choice

Best for: Refinancing car loans in general.

Who should apply? Borrowers looking to work with an established, traditional bank that is widely available.

Among its main benefits we have:

  • It is a trusted financial institution.
  • Quick application decision.
  • Discount for Preferred Rewards members.

However, its less favorable points are:

  • The car to be refinanced must be at least 10 years old.
  • The car cannot be counted on less than 125,000 miles.
  • Minimum loan amount of $7,500.

In general, Bank of America is a good option to refinance cars because it is a reliable bank. In addition, it guarantees a quick response for all your applicants. Also, the application process is easy and free and you will have all the financial tools (online) at your disposal once you are a member of the Bank of America family.

Finally, keep in mind that the current Bank of America interest rate (APR) to refinance a vehicle is 3.29% and the payment term ranges from 48 to 72 months. So with this bank, it’s a smart move to pay off your existing loan with new loan proceeds to take advantage of lower monthly payments, lower interest rates, or save on financing costs.

 

  1. Capital One: Excellent Online Pre-Qualification System

Best for: Pre-qualify for a car refinance without damaging your credit history.

Who should apply? Borrowers with less than favorable credit scores.

Among its most outstanding benefits are:

  • Borrowers can pre-qualify for free.
  • The refinancing application is 100% online.
  • No application fees.

Its main cons are:

  • The minimum loan amount starts at $7,500.
  • Capital One charges a variable title transfer fee.

Capital One offers one of the easiest and fastest online qualification systems on the market. In other words, if you are looking for the best banks to refinance cars, you should think and consider this entity very seriously. By completing a simple Capital One questionnaire, you can check if you’ll qualify to refinance your loan without affecting your credit score in the slightest.

While it is true that with this bank you will owe a little more money (at least compared to other entities) Capital One guarantees that you will be able to see what kind of rates you will get and pre-qualify without hard credit check impact.

Once you pre-qualify, you submit your credit application, which involves selecting the length of the loan and the corresponding interest rate. This will be posted on your consumer credit report. Keep in mind that the entire pre-qualification process is completely free.

 

  1. USAA: United States Federal Option No. 1

Best For: Refinancing auto loans for members of the military and their families looking for competitive rates and very low interest.

Who should apply? USAA is available to active members, veterans, or retirees of the United States armed forces.

USAA excels in the following :

  • Automatic payment discount.
  • No payments for up to 60 days.
  • The application process is very simple to complete.

Although, among its less favorable characteristics we have:

  • It is only available to USAA members.
  • Borrowers cannot pre-qualify

USAA is a bank that only works with members of the military and their families. However, if you are lucky enough to qualify for a USAA refinance, you will be dealing with an organization with almost 100 years of experience; offering great rates and customer service that is often hard to beat.

Keep in mind that, with this refinancing option, you will not have to pay until 60 days after starting the loan, which will give you time to get up to date. You can also choose from many of their vehicle protection plans if that’s something you’d like to add as well.

USAA offers to refinance up to 60 months, and longer terms are also available. Plus, this bank takes the hassle out of refinancing by working directly with your lender. Although refinance rates are not publicly announced, they are often very competitive.

 

  1. LightStream: Competitive Rates for Customers with Good Credit

Best For: Refinancing cars when you’re a borrower with good credit.

Who should apply? People with impeccable credit histories who are looking for the best (but most demanding) loans to refinance cars.

Among its most outstanding advantages are:

  • Low rates.
  • Quick and easy application process.
  • Refinancing is available in all 50 states.

The least favorable points are:

  • The request for this refinancing causes a hard credit check on your history.
  • Only available to borrowers with good credit (Over 660 points).

LightStream is a division of SunTrust Bank (now known as Trust) serving consumers with good to excellent credit. In other words, this financial institution only offers loans to people with a good record. Any consumer who is approved to refinance their car with LightStream will get one of the lowest interest rates in the market.

LightStream’s introductory APR starts at 2.49% and you’ll have between 24 and 84 months to pay off your debt. Now, this bank does a hard credit check on your history. Therefore, you must make sure that this is the ideal option for you. Remember that so-called “hard” credit inquiries can cause your score to drop slightly.

 

  1. Consumers Credit Union: Best Credit Union

Best For: Refinancing cars through credit unions.

Who should apply? Borrowers looking to obtain an auto loan refinance through a credit union with flexible loan terms and low rates.

The most outstanding characteristics of this Credit Union are:

  • Loan amounts start at $1,000.
  • Competitive rates.
  • Flexible loan options.

Main cons of this financial institution :

  • You must be an active member to apply.
  • Borrowers cannot pre-qualify.
  • The best payment options are only available to people with more than 640 FICO points.

Despite not being a bank, this credit union is one of the best in the United States; and to opt for the refinancing of a car you must be a member of it. However, once you become a member, the advantages become more than obvious.

Unlike many financial institutions, their loan terms are incredibly flexible, especially if you don’t need to borrow a ton of money.

Please note, that this credit union will create a “hard check” on your history; so make sure you’re serious about refinancing before you get your interest rate. Otherwise, your credit score will suffer. Finally, this lender’s interest rate is as low as 2.24% on newer vehicles; and you will have up to 78 months to pay your debt in full.

 

Compare the Best Auto Refinance Loan Banks 2022

Next, we leave you a comparative table where we show the interest rates, payment terms, minimum credit score, and other important characteristics of the best banks to refinance cars:

Financial entity Starting APR Minimum Credit Score Payment terms Maximum amount
Bank of America 3.39% Does not apply. 48 to 72 months. They don’t make it public.
Capital One. Between 2.19 and 3.19% Does not apply. 12 to 78 months. $120,000.
USAA.  Between 1.99 and 2.49% Does not apply. 12 to 78 months. They don’t make it public.
LightStream. 2.49% Available on auto pay and excellent credit. 660. 24 to 94 months. $100,000.
Consumers Credit Union. 2.24% Does not apply. 12 to 78 months. They don’t make it public.

 

 

Verdict

There are many bank options to refinance cars in the United States. Some lenders stand out for their easy online application process; while others are known for providing refinancing options for borrowers with bad credit.

In general, our best choice of banks to refinance cars is LightStream. The reason? It offers some of the most competitive auto loan refinancing rates on the market.

Plus, it features a simple online application process, no age or mileage restrictions, and financing as soon as the same business day. However, this option is only available if you have good credit.

Therefore, if you want to get started in the world of car refinancing, we recommend requesting information from Bank of America. It is a trusted bank with great financial strength that can help you refinance regardless of your credit history and with a reasonable interest rate.

 

Read More: 4 Best Fast Personal Loans For Quick Cash in the USA

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