Does Refinancing A Car Loan Hurt Your Credit Score

If you plan ahead when refinancing your auto loan you can minimize the effect of hard inquiries on your credit. When you refinance a car loan it could temporarily ding your credit score but.

Previously you must understand the background of Credit and get some Does refinancing a car loan hurt your credit score references in other articles on this website.

Whenever you refinance a loan your credit score will decline temporarily not only because of the hard inquiry on your credit report but also because you are taking on a new loan and haven t yet proven your ability to repay it.

Does refinancing a car loan hurt your credit score. According to myfico most credit scores aren t greatly affected if you do what is known as rate shopping. This involves submitting auto loan inquiries within a short period of time within 45 days. Auto refinancing just like any type of refinancing has the potential to affect your credit scores as calculated by the fico score and vantagescore scoring models.

Be sure to make your payments on time and after a few months your credit score should go back to where it was. Refinancing a car can save you money on interest or give you a lower payment and some breathing room in your budget. Refinancing a car can temporarily lower your credit score.

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