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Question By
erlachj

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why did my score go down after refinancing my home
My score dropped 45+ points when I refi'd my home. No cash out just an IRRL. Now how long will it take to get that score back?!

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There is no way for us to tell you.  We're users just like you and we don't have access to your report data.  To determine the cause(s) of any score change you have to carefully review report data from before and after the change.

We can only go over typical causes and guess.  Refinancing opens a new account which drops your Average Age of Accounts.  It also incurs a hard pull.  You probably also have a very high balance to loan ratio on that new account.  Additionally, new credit accounts can come with a scoring hit.

No telling on how long it will take to recover.  Scoring isn't that simple and straightforward.  Again, consider each standard factor.  With your AAoA drop you'd have to calculate how long it would take for you to get your AAoA back to where it was.  Hard pulls typically lose their impact at 1 year and fall off at 2.  IIRC, accounts are considered "new"  until 2 years old.  No idea on what balance to loan ratio you'd have to hit to recover from that scoring impact.

Which score are you referrring to anyway?  Which model?  Which CRA?  Keep in mind that there isn't just one scoring model out there used by creditors.  For most models you have a score with each of the 3 major CRA's.  Are you intending to apply for new credit in the near future anyway?

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