Auto Refinancing

[BackInTheSaddleAgain]

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.

[Barris]

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.