Does refinancing lower your credit scores?

Anonymous · ‎03-03-2008

I have about an 18% interest rate on my car right now. I have about 50 more months to go on my loan..I wanted to refinance with my creidt union since they pull from EQ. Im worried though, Im not sure if my score is going to take a hit on a balance of 14,000.00. Im trying to clean my report at this time because i want to buy a new home later this year...

YOu guys think I should refinance my loan without it impacting my score? I'd hate for it to go lower while im working hard to raise it near or aliitle over 700...

Thanks!

Greg

pattycake · ‎03-03-2008

It's hard to say what type of impact it will have. I do understand though, I had a loan at 17.5% a few years back and refinanced two years ago.

I would say it's not a good idea to refi while you are trying to bring up your score for a mortgage.

pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749

Myhearts · ‎03-03-2008

We just refi'd with HSBC Auto Finance and we are waiting to see if it will impact DH's scores as well as mine because I was co-signer on his loan and will not be on this new loan with HSBC. I would think that with all that debt falling off my report it would help. If you refinance, get a lower rate and lower payment, I would think that would help your scores some. I won't know for sure until next week when the $0 balance posts to our credit reports.

Hearts

I can and will be a part of the 700 club this year, because I can do all things through Christ.

Anonymous · ‎03-04-2008

A short term FICO hit (6 months) is better to do it now than closer to motgage time-

Saving $ and a lower DTI is going to help you down the line.

theshadow12345 wrote:

I have about an 18% interest rate on my car right now. I have about 50 more months to go on my loan..I wanted to refinance with my creidt union since they pull from EQ. Im worried though, Im not sure if my score is going to take a hit on a balance of 14,000.00. Im trying to clean my report at this time because i want to buy a new home later this year...

YOu guys think I should refinance my loan without it impacting my score? I'd hate for it to go lower while im working hard to raise it near or aliitle over 700...

Thanks!

Greg