Frequently Asked Questions

Does refinancing a car loan hurt my credit score?

Checking your refinance rate with Lendbuzz uses a soft pull with no credit impact. If you proceed with the refinance, a hard inquiry will appear on your credit report, which may cause a small, temporary dip. The long-term benefit of a lower rate typically outweighs any short-term score effect.

How long will it take to refinance my car loan?

Checking your rate takes about 2 minutes. If you accept the offer, the full refinance process (document signing, payoff to your old lender, new loan activation) typically completes within a few days to two weeks depending on your current lender's payoff processing time.

Does checking my refinance rate require a hard credit pull?

No. Lendbuzz uses a soft pull to show you your refinance rate. A hard pull only occurs if you decide to move forward with the refinance. You can check your rate with no risk and no obligation.

How much could I save by refinancing my car loan?

Savings depend on your current rate, remaining balance, and the new rate Lendbuzz offers. Even a 2% rate reduction on a $20,000 balance can save over $1,000 in total interest. The best way to find out your specific savings is to check your rate, which takes 2 minutes.

Will my monthly car payment go down after refinancing?

In most cases, yes. If you refinance to a lower rate or a longer term, your monthly payment will decrease. If you refinance to a shorter term, your monthly payment may increase but you will pay less total interest. Lendbuzz shows you exactly how different terms affect your payment before you commit.

Can I refinance my car loan with bad credit or limited credit history?

Yes. Lendbuzz uses AI-powered underwriting that evaluates your full financial picture, not just your credit score. If your finances have improved since your original loan, even if your score has not caught up yet, our technology can often offer a better rate than what you are currently paying.

Can I refinance my car loan with an ITIN instead of an SSN?

Yes. Lendbuzz serves ITIN holders for both new auto loans and refinancing. If you have a current auto loan and want to refinance for a better rate, you can apply through our platform using your ITIN.

What documents do I need to refinance my car loan?

‍You will need your current loan details (lender name, approximate payoff amount), vehicle information (make, model, year, mileage), a government-issued ID, and a bank account to connect through Plaid. No paper pay stubs, W-2s, or tax returns are required.

Can I refinance if I owe more than my car is worth?

Refinancing when you owe more than the car is worth (negative equity) is more difficult but not always impossible. Approval depends on the amount of negative equity, your financial profile, and the lender's guidelines. Check your rate with Lendbuzz to see what options are available for your specific situation.

Are there fees or prepayment penalties to refinance my car loan?

Lendbuzz does not charge application fees, origination fees, or prepayment penalties. Check with your current lender to see if they charge an early payoff penalty, though most auto lenders do not. The refinance itself through Lendbuzz carries no hidden fees.

How soon after my original loan can I refinance?

There is no universal waiting period, but most lenders (including Lendbuzz) prefer to see a few months of on-time payments on your current loan before refinancing. This establishes a payment history and ensures the title transfer from your original purchase has been completed.