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familyp17

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Can your credit score drop if you refinance your house?
I just refinanced my home and I don't have anything in collections, all of my payments are on time and my credit score dropped. Any suggestions?

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You most likely got a "hard inquiry" for applying for the new loan which will result in a slight score decrease and you also opened a new account which reduced the average age of your accounts which also results in a score ding. The new loan is most likely fully utilized, meaning that you owe the entire amount of the loan value versus having a loan that was paid down (you owed less than the amount of the loan). All of these things are only temporary things and things will improve over time as things age and you pay the new loan down. Keep in mind that your credit scores should not be your only focus, saving money by refinancing is very important as well. Also I advise if you are concerned about credit scores you should watch your FICO scores in addition to any non-fico models.

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