Getting approved for a car loan with bad credit is already a challenge, and refinancing an existing loan when your score is still down in the dumps can be just as tough. Borrowers with poor credit may have better luck applying with an alternative lender, as conventional lenders typically have minimum credit score requirements. That said, it's still possible to refinance a car loan if you have bad credit, but it might not make much financial sense.   One of the best times to refinance your car loan is when your credit score has improved. This will increase your chances of securing a lower interest rate, which can help reduce your monthly payments and help you save money in interest. If your score has not improved since you initially took out your loan, you may be better off waiting until improvements have been made.  However, if other areas of your financial life have strengthened, applying for a refinance could be beneficial. For instance, if you've managed to pay off much of your debt and your income has increased, refinancing could make financial sense, even if your credit score remains the same.   Otherwise, you may consider refinancing to extend the loan term, which will give you more time to pay back the loan and lower your monthly payments, even if you can't qualify for a lower rate.