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Auto loan refinancing.....does it affect your credit?

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Auto loan refinancing.....does it affect your credit?

Old 01-01-06, 07:54 PM
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Auto loan refinancing.....does it affect your credit?

So does it? I have perfect credit and I already sat down with my bank to refinance and she mentioned to me that refinancing can affect my credit score. I asked her what the damage would be and she said she didn't know??? I said I will hold off since the current prime rate is more than what I'm paying now but I'm a little confused as to how refinancing a loan can hurt my credit.

Anyone have more info on this?
Old 01-01-06, 07:57 PM
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probably because it's going to show up as a new account with no history
Old 01-01-06, 08:13 PM
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If you have perfect credit I wouldn't be too concerned about it. Just don't do it 3 times in the next month.
Old 01-01-06, 08:49 PM
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Originally Posted by Thor Simpson
If you have perfect credit I wouldn't be too concerned about it. Just don't do it 3 times in the next month.
That's what I was thinking. I take my credit seriously and don't want to ruin it. I'm going to try if I can find out more through the bank tomorrow.
Old 01-01-06, 08:55 PM
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Originally Posted by al_bundy
probably because it's going to show up as a new account with no history
I don't think so, as far as I know, the age of the account only matters for revolving credit (credit cards).

The reason it would hurt your credit is that they do a "hard pull" to check your credit-worthiness as part of reviewing your loan applications. "Hard pulls" represent you asking for credit or a loan, and cause your score to go down. If you have very good credit, however, the impact is probably minimal and really not worth worrying about unless you plan on applying for a bunch of credit cards and mortgages in the near future.

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