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.
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.