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Posted in Auto Loans
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findmemoney

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New car loan at 9.65% - my score improved.. refinance @3%. Affect my score? IF I switched lenders?

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If you refinance, you close one line of credit and open a new line of credit. Opening the new line of credit will reduce the "average age of accounts) which will most likely result in a slight decrease in scores, You will also most likely get a "hard inquiry" when applying for the new loan which will also most likely result in a slight decrease in scores.

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The bottom line: Sure your scores may be slightly negatively affected for refinancing a loan, BUT if refinancing saves you a lot of money, then that is what you want to do. Unless you are going for a major purchase such as a home or automobile, you should not revolve your life around your credit scores. Keep in mind that credit is used to help a person financially and not cause financial harm.

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