Does refinancing a car hurt your credit?

The answer depends on whether you take out a new loan when you refinance. If you simply refinance your existing car loan, the answer is no. Because there is no new debt, refinancing won’t affect your credit score. But if you take out a new loan to cover the costs of the refinance, that would be a different story.

Will refinancing a car hurt your credit?

Refinancing a car is unlikely to hurt your credit in the long run. However, if you charge an over-the-limit fee, take out a loan for more than you need or finance more than you can afford, it could leave a dent in your credit report. Refinancing can also have a negative impact on your credit if you miss a payment or default on the loan. But the impact will be temporary if you pay off the loan, repair your credit and keep the loan on

Will refinancing a car hurt your credit score?

Despite the possibility of a slightly higher interest rate, refinancing your car is an excellent opportunity to improve your credit score. First, you'll remove any derogatory or late payments on your car loan. Once your new loan is paid off, you'll have no car-related debt. In addition, you'll likely have a lower interest rate, which means that you'll pay less in the long run.

Does refinancing a car hurt your credit score?

The answer is no. Refinancing your car will not hurt your credit score. However, if you take out a larger loan than you need, it could temporarily affect it. The longer your loan remains open, the more it will affect your credit score, which is why it’s important to pay off your loan as soon as possible.

Does a car refinancing hurt your credit?

A car refinance is unlikely to hurt your credit in the long term if you pay off the original loan in full. If you do end up with a late payment or some other kind of problem, it could have an impact on your credit report. But a late payment on a car loan is unlikely to hurt your credit long-term.