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Posted in Auto Loans
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Question By
johnnyzguitar

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how will refinancing auto loan for lower interest rate affect credit score
I am considering refinancing auto loan current from current 7.49% to 1.95%-2.99%. My current CK scores 736TU and 748EQ. Fico 8 752TU 693EX 686EQ. My current account age is just under 2 years. Anybody have suggestions on whether it is worth refinancing and how much will this will potentially impact my credit scores. I have paid down more 40% of current loan in a year and a half and plan to pay off loan either way within the next two years.

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Top Contributor
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It depends on how much your current balance is.  There will be another set of inquiries, hurting your score some.  How much in total dollars would 2.99% save you over that time?  And would you plan to apply for new credit in that time?

If not planning to apply for new credit, the ding from the application will time off in 2 years.

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