Bank of America does offer car loan refinancing, but only for loans they already own
Bank of America will refinance a car loan, but with a significant limitation: they refinance only vehicles they financed originally. If you took out your car loan through another lender—a credit union, another bank, a dealership's finance arm—Bank of America cannot refinance it into a new loan with them. They do not purchase existing auto loans from other institutions the way some lenders do.
If Bank of America is your current lender, you can request a refinance to lower your interest rate, extend your loan term, or change other loan terms. The process happens through your existing Bank of America account, and you work with their auto lending team directly. The timeline and approval depend on your current credit profile and the equity in your vehicle.
This matters because refinancing typically makes sense when interest rates have dropped since you took out the original loan, or when your credit score has improved enough to may have access to for better terms. If Bank of America is not your lender, you would need to look elsewhere.
Key Takeaways
- Bank of America refinances only car loans they originally issued; they do not take over loans from other lenders.
- Refinancing through Bank of America can lower your monthly payment, reduce your interest rate, or change your loan term if rates or your credit have improved.
- You start by contacting your Bank of America loan servicer or visiting a branch with your current loan details.
- The approval process typically takes one to two weeks, and you will need to provide updated financial information and consent to a credit check.
When Bank of America will refinance your existing loan
Bank of America reviews refinance requests based on your current financial situation, not just your original credit score. If your credit has improved since you took out the loan, or if market interest rates have dropped significantly, you may may have access to for better terms even if you were a riskier borrower originally.
The lender looks at your current income, employment status, debt-to-income ratio, and the vehicle's current value. You will need to provide recent pay stubs, proof of employment, and sometimes a recent tax return. Bank of America will also run a hard credit inquiry, which temporarily lowers your credit score by a few points.
The vehicle itself must still be in acceptable condition and have reasonable mileage for its age. If the car is worth significantly less than you owe on it (you are underwater on the loan), refinancing becomes harder because the lender's collateral is worth less than the debt.
How the refinancing process works at Bank of America
Start by contacting Bank of America's auto lending department. You can call the number on your loan statement, visit a local branch, or log into your online account to see if a refinance option appears. Some customers see a refinance offer in their account dashboard if Bank of America has already identified them as a candidate.
When you initiate a refinance, Bank of America pulls your credit report and requests updated income documentation. They will ask you what new terms you want: a lower interest rate (if rates have dropped), a shorter loan term (to pay off faster), or a longer term (to lower your monthly payment). You cannot change both the rate and term arbitrarily—the new rate depends on current market conditions and your creditworthiness.
Once you agree to new terms, Bank of America prepares new loan documents. You sign these either online, by mail, or in person at a branch. The old loan is paid off with proceeds from the new loan, and your payment schedule restarts. This entire process typically takes one to two weeks from process to funding.
What changes and what stays the same in a refinance
Your interest rate and monthly payment are the primary things that change. If you refinance into a shorter term, your payment goes up but you pay less interest overall. If you refinance into a longer term, your payment goes down but you pay more interest over the life of the loan.
Your vehicle, your lender (Bank of America), and your loan type (secured by the car) remain the same. The car's title and lien holder do not change. Your existing loan straightforward closes and a new one opens with a new promissory note and new terms.
Some costs may explore. Bank of America typically does not charge a refinance fee, but your state may charge a small fee to re-register the lien on the vehicle title. This is usually under $50 and varies by state. Ask Bank of America to provide an estimate of all costs before you sign.
Reasons to refinance and reasons not to
Refinancing makes sense if your interest rate drops by at least 0.5 to 1 percentage point. A smaller drop may not save enough to justify the time and paperwork. Use an online auto loan calculator to compare your current payment against the new payment under the proposed terms—the difference tells you whether the refinance is worth doing.
Refinancing also makes sense if your credit has improved significantly since you took out the original loan. If you were a subprime borrower (credit score under 620) and now have a score above 700, you may may have access to for a much better rate.
Do not refinance if you are close to paying off the loan. If you have only 12 months of payments left, the interest you save will be minimal, and restarting the loan clock means you pay longer overall. Similarly, if you plan to sell or trade in the vehicle within the next year or two, refinancing may not be worth the effort.
What to do if Bank of America is not your current lender
If another lender holds your car loan, you have two paths. First, you can contact that lender directly and ask whether they offer refinancing. Most banks, credit unions, and online lenders do, and the process is similar to what Bank of America offers.
Second, you can shop for a refinance loan from a different lender entirely—including Bank of America. In this case, you would be taking out a new loan with Bank of America to pay off your existing loan with the other lender. This is called a cash-out refinance or a loan payoff. Bank of America would need to verify that you own the vehicle free and clear or that you have sufficient equity in it.
The advantage of switching lenders is that you can shop for the best rate. The disadvantage is that you are starting a new loan from scratch, so the approval process takes longer (typically three to five business days) and you may face a small payoff penalty from your current lender, though most do not charge one.
Frequently Asked Questions
Can I refinance my Bank of America car loan if I have bad credit?
Bank of America will consider a refinance even with lower credit, but you may not may have access to for a better interest rate. If your credit has worsened since you took out the original loan, refinancing will not help. If your credit is stable but was poor to begin with, ask Bank of America whether you may have access to; they may offer a modest rate reduction.
How long does a Bank of America car loan refinance take?
From process to funding typically takes one to two weeks. The credit check and document review take a few days, and signing and processing the new loan documents takes another few days. Weekends and holidays can extend this timeline.
Will refinancing hurt my credit score?
The hard credit inquiry will lower your score by a few points temporarily. Closing the old loan and opening a new one also affects your credit mix and average account age, which may lower your score slightly. These effects are usually temporary and recover within a few months.
What if I owe more on my car than it is worth?
If you are underwater on the loan, Bank of America may still refinance you, but they will not refinance the full amount you owe. They will refinance only up to the vehicle's current market value. You would need to pay the difference out of pocket or roll it into the new loan, which increases your total debt.
Can I refinance my Bank of America car loan multiple times?
Technically yes, but it is not practical. Each refinance involves a hard credit inquiry and new closing costs. Refinancing more than once every two to three years usually costs more than it saves. Bank of America may also decline a refinance request if you have refinanced recently.