Refinancing your car means taking out a new car loan and using it to repay the old debt. Car owners often refinance to save money or make monthly payments more affordable.

So, how often can you refinance your car? There are no rules or restrictions that would keep you from refinancing as often as you like, but that doesn’t mean it’s always a good idea.

Is It Bad to Refinance Your Car Multiple Times?

It’s not necessarily bad to refinance your car more than once or twice. Changing your loan can help you pay off your car faster or save thousands of dollars in interest. It may also be necessary to remove or change a co-borrower or to make other significant changes to the financing terms.

If you are considering taking out a new car loan, carefully weigh the risks and advantages. Make sure to do the math to verify that you are saving money. You can also contact RefiJet. Our pre-qualifying process includes speaking with our financial experts, who can help you decide which refinancing option is best for you.

Risks of Refinancing Multiple Times

While you can refinance your car more than once, there are some risks, including:

• Affecting your credit score: Each time you apply for a new loan, your credit score takes a temporary hit for up to six months. If you refinance often, it can take a while for your score to bounce back, and if you apply when your score is still slightly lowered, you may not get the best rate.
• Paying more: In addition to getting a less attractive rate because of your credit score, you may pay more in fees and prepayment penalties. You may also need to pay a new title fee, origination and processing fees, and additional fees each time you get a new loan. Before you refinance, check to see whether you’ll experience these extra costs.
• Owing more than the car is worth: If you extend the term of your loan and refinance a few times, you could end up paying more, and as your car depreciates as it ages, you could end up owing much more than it deserves.

Refinance Right With RefiJet

Whether you’ve already refinanced once or not, there’s still hope if you need a new car loan or didn’t get a good deal last time. RefiJet is here to make a difference. Car owners who refinance with us save an average of $150 a month. Fill out our online form to get started!

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