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bussano

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I want to refinance my car loan. will my credit score drop

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It certainly will, for three reasons.
1. The company that does the refinance will do a hard inquiry, which will lower your score by 3-5 points. 

2. When you refinance, your original loan is paid off. When you pay off a loan of any kind, be it mortgage, personal loan, or car loan, your score drops a little. Weird that it works that way, but it does.

3. Your have a brand-new loan. A new installment loan always causes a drop at first, but should recover within a few months as you make on-time payments.

So you have a choice to make: What's more sensible for you--a higher score, or more money in your pocket (I assume that's why you would refinance)? The two are often in conflict, unfortunately. What is common sense and good for your budget can actually lower your score.

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