Regular Contributor
Posts: 172
Registered: ‎02-08-2013

Auto Refinancing

Anyone know the impact on your score when you refinance a car? I would think it wouldn't have much impact at all since you are paying off one loan with another. The reason I care is because I am actually going to refinance one of my cars that is currently in my name (14 months old at 18%) and then buy a 2nd car from my company. I actually own the 2nd car but its just in the company name. I need to get it in my personal name.


Regardless, I was wondering which I should do first: the refinance or the purchase? The refinance is $8,500 and the the purchase is $18,000. I am only 5 years post BK and my scores are still not that great. Any input and or wisdom would be appreciated.



Current Score: EX: 720, EQ: 723, TU: 703
Goal Score: EX: 750, EQ: 750, TU: 750

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Established Member
Posts: 113
Registered: ‎12-04-2012

Re: Auto Refinancing

There will be no short term effect on your credit score if you refinance, neither will it improve nor will it take a hit. Generally speaking, people refinancing a vehicle usually see a 5 point or less dip in their credit score. The hit occurs simply because your lender is going to do a hard pull on your score. Refinancing through a dealership also poses a risk because they deal with multiple lenders where each might run individual hard pulls.

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