How To Refinance Student Loans With Bad Credit

By Victoria Holliday | Published on February 23, 2026

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If you’re thinking about refinancing your student loans with bad credit, it’s a good idea to compare different lenders and see what options are available to you. Lenders look at more than just your credit score when determining what interest rates to offer you.

What credit score do you need to refinance student loans?

Every lender will be different, but you need a minimum credit score usually in the mid-600s. The higher your credit score is, the easier it will be to qualify for refinancing options¹. You’ll also receive better interest rates, which can help save you money and make it easier to pay off your student loans faster².

While your credit score is a factor in determining your eligibility for refinancing, lenders also look at other factors, such as your debt-to-income ratio (DTI).

There is not a universal minimum eligibility requirement to refinance student loans. All lenders have their own unique set of eligibility requirements. At Earnest, your credit history isn’t the only factor in your loan application. You can visit https://www.earnest.com/eligibility to read our full eligibility guide.

Is it worth refinancing with bad credit?

Borrowers with less-than-perfect credit have options when they want to refinance their student loans. Your interest rate is only one factor in determining if refinancing is right for you. Be sure to consider interest rates, repayment terms, and any fees charged by the lender in your evaluation as well. Do your research and comparisons between lenders.

How to refinance student loans with bad credit

1. Compare lenders
When evaluating your options for refinancing, it is important to compare lenders. Some factors to consider include their credit score requirements, debt and income restrictions, fees and interest rates, repayment terms, and discounts and savings such as Auto Pay.

As you compare lenders, you should also consider other factors like their service, reputation, and technology.

2. Improve your credit score
Improving your credit score will help make it more likely for you to receive loan approval and lower interest rates. There are a few ways you can improve your score. To start, make sure you know your credit score and that it is accurate. You can get a credit report from each of the three main credit bureaus once per year at AnnualCreditReport.com. Check for errors and if you see any, dispute them with the credit bureau and have them removed to help improve your score.

Next, pay off existing credit cards and pay down your debt. Your payment history is a factor when determining your credit score, so pay your existing debt and all of your bills on time.

You can also “Boost” your score, through Experian Boost, by manually adding accounts you pay regularly (such as utility bills and streaming services).

Consider refinancing with a cosigner
If your credit history isn’t the best, you can refinance with a cosigner who can help you qualify for a lower interest rate. When it comes to interest rates, even a few percentage points can translate to hundreds, if not thousands, of dollars over the life of the loan; every little bit matters.

It’s important to know that not all lenders offer refinancing with a cosigner as an option. Earnest offers refinancing with a cosigner only in some cases. Specifically, only borrowers who’ve previously applied independently with us to refinance and were denied have the option to re-apply with a cosigner. If you’re a first-time applicant, cosigner refinancing with Earnest will not be available.

Lower your debt-to-income ratio
Pay off existing credit cards. Decreasing your debt-to-income ratio (the amount of debt you have compared to your income) can increase your score.

If you’re feeling burdened by student loan debt, and researching refinancing, Earnest offers some of the lowest interest rates in student loan refinancing. In just a few minutes you can see your rate without it hurting your credit score. Calculate how much you could save by refinancing.

About the Author

Victoria Holliday

Victoria is the Head of Content at Earnest. She brings extensive ed-tech expertise from six years at Chegg, where she developed educational resources reaching over 20 million students nationwide.

With a Master’s in Political Science and experience in public policy from several California campaigns, she’s passionate about creating accessible content that enhances student outcomes in the dynamic world of higher education.

Disclaimer

Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 You may lose benefits associated with your underlying federal and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options. If you file for bankruptcy, you may still be required to pay back this loan.

2 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan.