PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can you refinance a car loan after six months?
I paid my car loan on time for the past eight months after I got bonus cash from the dealer for financing. Now I want to refinance, as I found a better rate. Can I refinance a car loan after six months?
Phoebe Mah · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
No time restrictions or legal precedents dictate when you can refinance your loan. That said, you can certainly
refinance a car loan
after six months. However, you may need to wait longer in order to get positive equity in the vehicle.Most lenders suggest waiting six months after opening a loan because it gives an applicant time to rebuild their credit and stabilize their financial situation. In addition, the borrower can also enjoy a six-month history of paying their monthly loan on time. This, in turn, can increase the applicant’s chances of getting approved for a new loan.
Keep in mind that you need positive equity to refinance a car loan, as most lenders consider even highly qualified applicants a high risk if they have negative equity. Use your amortization schedule to find your break-even point or make a lump-sum payment to get to your break-even point.
If you want to find savings on top of your refinancing,
Jerry
removes the hassle by giving you one app that instantly connects you with top companies to meet your insurance needs. Sign up today and become another Jerry customer that saves an average of $879 per year.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies