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Will refinancing hurt my credit?

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Frequent Contributor

Will refinancing hurt my credit?

Does refinancing hurt your credit report besides the fact that it's a new account? Is the current loan marked as paid off? I would think the new lender is reported as a totally new account right? I'm not to exited to see how much my scores drop after this new account reports lol.
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Super Contributor

Re: Will refinancing hurt my credit?

While you may get a ding for a new account and an INQ in the short term, in the long term you will be fine.  A Refi is always a smart move regardless of what happens to your CR.

12/19/2018: FICO 838 EQ 830 TU 827 EX
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Community Leader
Super Contributor

Re: Will refinancing hurt my credit?


@Newbie2018wrote:
Does refinancing hurt your credit report besides the fact that it's a new account? Is the current loan marked as paid off? I would think the new lender is reported as a totally new account right? I'm not to exited to see how much my scores drop after this new account reports lol.

You should not lose a lot of points for refinancing your auto loan.  Your old loan will be marked as paid off.  You are saving money refinancing so losing a few points of your score should not outweigh the smart move you are making here.

Message 3 of 5
New Visitor

Re: Will refinancing hurt my credit?

Hello, I am curious to know how much of a hit your CR took after the refi.  I am trying to rebuild my credit and refinanced my auto loan withouth thinking about any negative repercussions.  Now I'm waiting to find out when everything will hit my report.

My goal is to fix my credit so that I can finally buy my own home. Here goes the journey...
Starting Scores
11/7/18 EX: 634 TU: 635 EQ: 609
Message 4 of 5
Frequent Contributor

Re: Will refinancing hurt my credit?

I believe only about 5 points for the inquiry but i believe about 20 points total because it reported before the old loan was reported closed.
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