Key takeaways You should still shop for the best auto refinance rates and terms even if you have bad credit — there is still a chance to find a competitive option for your budget. Refinancing your car loan with bad credit may make sense if you can lower your monthly payment by spreading your loan out over a longer term. If refinancing your car loan isn’t an immediate need, take steps to improve your credit score to qualify for better rates and more flexible terms. If you’re having trouble qualifying, ask someone who has better credit to cosign or look for lenders that specialize in bad credit loans. If you’re finding it hard to make your car payment every month due to rising costs, increasing car insurance premiums or unexpected expenses, auto loan refinancing may provide some relief. However, you are unlikely to qualify for a competitive annual percentage rate (APR) with bad credit, and the cost of refinancing may outweigh the benefits.…