How to refinance a car loan

Refinancing a car loan can be straightforward and convenient. Just follow these steps.

Four steps to a hassle-free refinance

Follow these four basic steps when preparing to refinance your car loan:

Calculate the value of your car.
Prepare the necessary documents for your application.
Compare rates and fees, then begin the application process.
Get ready to close on your new car loan.

Calculate the value of your car.

The current value of your car will affect your refinancing options. Your car should be worth more than the amount remaining on your loan, since the car itself is typically used as collateral. If you’re a U.S. Bank customer, you can enter your vehicle into our U.S. Bank Vehicle Manager for free, real-time Kelley Blue Book valuations and much more.

Prepare the necessary documents.

Once you’re ready to apply for an auto refinance loan, you’ll need to gather:

Documents to verify your state of residence, employment, income and Social Security number
Your current loan information
Your vehicle registration and mileage
Proof of car insurance

You can apply for an auto loan refinance with U.S. Bank online or by visiting your nearest branch. In most cases, you’ll receive a decision on your application the same day. You can always check your application’s status during the process in our customer portal (watch your email for the link after you submit your application).

Compare rates and fees.

Rates and terms may vary widely, so it’s important to compare lenders when looking to refinance. Also, know that while there are many factors involved, your credit score will significantly impact the rate you’re quoted. Generally speaking, the higher your credit score, the better rate you’ll be offered. (Note: If you’re a U.S. Bank customer, you can view your credit score for free anytime in the U.S. Bank Mobile App or online banking.)

When looking to refinance, also consider origination fees for your new loan and prepayment penalties on your previous loan, so you can understand the total cost of refinancing.

If you have questions about your U.S. Bank loan quote, visit a local U.S. Bank branch or call us at 800-USBANKS (872-2657).

Get ready to close.

Once you’ve decided on a lender and received an approval on your application, it’s time to close your loan. If you choose U.S. Bank as your auto lender, you’ll be able to close online, typically within a day or two of applying. Other lenders may require you to visit a local branch or office and complete the paperwork in person. Be sure to bring in the necessary documents that the lender requests.