Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
ShadowGothGurl

0 Contributions
0 People Helped
Will a new mortgage lower my score?
I am wanting to refi my car once I close on my mortgage so wanted to know if anyone knows how the new mortgage will do to my credit score and how long should I anticipate waiting before I am able to refi my car?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
5038 Contributions
1134 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

First, don't do anything until the mortgage is secured. The mortgage will lower your credit, by how much, it is hard to say. Opening the new mortgage will come with "Hard Inquiries" and lowering the "average age of accounts" and adding a loan with a full balance owed. All of which ding credit scores. I guess you will just have to wait and see once the mortgage is secured. One thing you may try (AFTER the mortgage is secured and no more credit checks will be done for it) is to hurry up and try to refi the car before the mortgage hits your reports. It usually take a month or two for a new account to show up on your credit reports.

Top Contributor

Reply by
Krissie72

269 Contributions
114 People Helped

Excellent advice about waiting until after the mortgage closes, and also about doing the car refi before your mortgage hits your reports. I closed on my house over three months ago and it's still not on my reports. 
I've been trying to find out that information myself, and there's so much conflicting info out there it's impossible to get a straight answer. Best case scenario, it will go up about ten points--that's what has happened according to some people in other forums. According to my Experian simulator, there will be no effect (which I find hard to believe). According to the Credit Karma and Capital One simulators, my score will take a huge dive, about 60 points.

Anyway, if your score ends up dropping, you'll want to have done the car refi before that happens, obviously, because the higher your credit score is the less you'll pay in interest.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.