Refinancing furniture loan, will it affect me?

[Anonymous]

I'm planning on refinancing my furniture loan but also want to refinance my auto loan in the next couple of months. I'm trying to rebuild my credit since I went a little crazy on credit cards when I was 18. 

It's finally at an ok score but still working on doing better. My question is, if I try to refinance my furniture loan, will those be new inquiries added to my report that could/most likely lower my score? 

I don't want to risk lowering my score if I want to refinance my auto loan soon.  I really want to get my interest rate a little lower on my car. Let me know if you guys have any info or personal experiences.

Thanks. 

[takeshi74]

Depsite the obsession over them around here and on other sites inquiries are typically a small factor and certainly not the only factor to consider.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Inquiries can have a bigger impact for those with thin credit profiles and/or profiles with issues but the impact of any factor can vary depending on one's credit profile.

You will incur hard pulls.  You will also lower your Average Age of Accounts (Length of Credit History in the link above) as refinancing opens a new account.  You will also have new accounts on your reports and there is an impact for that.

---

@Anonymous wrote:

I don't want to risk lowering my score if I want to refinance my auto loan soon.  I really want to get my interest rate a little lower on my car.

---

Then hold off on the furniture refinance and identify and address whatever credit profile issues you can before you attempt to refinance your auto loan.

[RonM21]

I agree with the above thought. The inquiries, change in AAoA, and new accounts may give you a dip, but the impact may not be as great, depending on the file.