Banks are a popular place to refinance a car loan, and for good reason. Many offer competitive rates, familiar service, and the option to bundle your loan with other accounts.
Still, the right bank depends on your credit, your car, and how much you want to save. Here are strong choices to compare as of July 2026, plus tools that can shop several banks for you.
Why Refinance Your Auto Loan with a Bank
Refinancing swaps your current loan for a new one, ideally at a lower rate. As of July 2026, the average 60-month new-car loan sits near 6.9%, with used-car loans often higher, according to Bankrate.
Borrowers who refinanced in early 2026 cut their rate by about 2.24% on average and saved roughly $81 a month, based on industry data. Your savings can vary. Terms apply; APRs vary by creditworthiness.
Big banks often appeal to borrowers who want an established name and in-person branches. Just remember that their rates are not always the lowest, so comparing matters.
Our Top Picks
These five options are worth comparing as of July 2026. Treat the rates as starting points, since they change often.
Capital One Auto Finance — lets you prequalify with a soft credit check and offers terms up to 84 months with no prepayment penalty. Best for: shoppers who want to check a rate without a hard inquiry.
Bank of America — offers a 30-day rate lock and a rate discount for Preferred Rewards members, with a minimum APR near 5.39% as of mid-2026. Best for: existing customers who qualify for loyalty perks.
LightStream (a division of Truist) — charges zero fees, funds quickly, and places no restrictions on vehicle age or mileage. Best for: strong-credit borrowers who want a no-fee loan.
iLending — a refinance service that shops your loan across 60+ lenders, including banks. Clients save an average of about $148 a month, and it accepts scores as low as 560. Best for: reaching many banks with one application.
myAutoloan — an online marketplace with 20+ lenders and refinance APRs starting near 3.99% for well-qualified borrowers. Best for: comparing several bank offers quickly.
A Faster Way to Compare Many Banks
Applying to banks one at a time takes work, and each hard inquiry can nick your credit. A refinance service can shop many lenders with a single application.
iLending takes one application and sends it across a network of 60+ lenders, including banks and credit unions. It works with scores as low as 560, decisions can come within 24 hours, and borrowers may be able to skip 45 to 90 days of payments while the new loan is arranged.
If you want a bank rate without filling out a dozen forms, iLending is a practical place to start.
A Marketplace That Shops Bank Offers
myAutoloan is an online marketplace that connects you with 20+ lenders, many of them banks. It handles refinance, new-car, used-car, private-party, and lease-buyout loans.
For well-qualified borrowers, refinance APRs can start near 3.99%, though your rate depends on your credit and term. Terms apply; APRs vary by creditworthiness.
Because it returns several offers at once, myAutoloan makes it easy to see how different banks stack up before you commit.
myAutoloan
myAutoloan
Find the right auto loan in minutes — even with bad credit. myAutoloan connects you with 20+ lenders to compare personalized offers for new cars, used cars, refinancing, and lease buyouts. Free to use with no obligation.
Standout feature
Compare offers from 20+ lenders. Works with bad credit. BBB A+ rated.
Fees
Free
Pros
Free to use with no obligation. Works with all credit types including bad credit. BBB A+ accredited.
Cons
Some users report receiving calls from multiple dealers after applying.
Looking Beyond Auto-Only Lenders
Sometimes the best move is to widen your search past car-focused banks. A broader marketplace can surface more choices.
MoneyLion is a loan-comparison marketplace that pulls offers from several lenders into one view. If you want to weigh many quotes side by side, MoneyLion can help you compare before you decide.
MoneyLion
MoneyLion
Compare personal loan offers from top providers in minutes with no credit score impact with the MoneyLion Marketplace.
Standout feature
Soft-pull marketplace that surfaces prequalified personal loan offers from a network of lenders, with options up to $100,000 and partners that work with fair and bad credit
Fees
Free to use the marketplace
Pros
Compare multiple lender offers in minutes; soft credit pull to prequalify — no impact on your score
Cons
Final approval requires a hard pull from the chosen lender
What Banks Look at When You Refinance
Banks weigh your credit score, income, and current loan balance. They also look at your car's age, mileage, and value, since the vehicle secures the loan.
A higher credit score usually earns a lower rate. Older cars with high mileage can be harder to refinance, because some banks set limits on vehicle age and miles.
Prequalifying with a soft credit check, where offered, lets you compare bank rates without hurting your score. Comparing at least a few offers is the surest way to find savings.
Frequently Asked Questions
Which bank is best to refinance an auto loan?
There is no single best bank for everyone. Capital One, Bank of America, and LightStream are all popular choices, but the best fit depends on your credit, your car, and your current rate. Comparing a few offers, or using a service that shops many banks at once, helps you find the lowest rate.
Is it better to refinance with a bank or a credit union?
Both can offer good rates, and the winner depends on your situation. Credit unions sometimes beat banks on rate but require membership. Banks may offer wider availability and loyalty perks, so it is worth comparing both before deciding.
Does refinancing an auto loan hurt your credit?
A refinance usually causes a small, temporary dip from the hard credit check. Prequalifying with a soft pull first does not affect your score. Over time, on-time payments on the new loan can support your credit.
Can I refinance my car loan with the same bank?
Sometimes, but many banks prefer to refinance loans they do not already hold. It is often worth comparing outside offers, since another lender may beat your current rate. Terms apply; APRs vary by creditworthiness.
