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Posted in Auto Loans
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everylilbithelps

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Will refinancing my current auto loan in order to lower my intrest rate hurt my current credit score
My goal is to have the van paid off and be shopping for a home with in the next few years so I do not want to do anything to set myself back.

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Top Contributor
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a couple of factors to consider.

First, Does the lender allow early pay off.  MAny have penalties for early pay off that often equal the interest that they will lose so you may not save much there.  contact the lender to find out.  Second, you could contact the original lender and ask them if they will refinance the loan at a lower rate, This may work if they are offering a lower rate now than when you originated the loan. 

As far as hurting your score, You will see a dip in your score anytime you apply for new credit. Make the payments and your score will bounce back fairly quickly.   

Good Luck

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