Will my credit score drop if I refinance my car?

"Will refinancing my car hurt my credit? I financed my car 2 years ago with a fairly high interest rate car loan. My credit score has significantly increased and I think I would now qualify for a much better rate."

Answer
“It is true that your credit will likely dip when you refinance a car.
However, these effects are temporary and mild. So you can expect a drop by a few points that will last for a few months, and then it’ll be right back where it was.
Your credit score dipping shouldn’t really weigh in on your decision to refinance all that much.
The benefit of possibly saving thousands of dollars should be more than enough of a reason to seriously consider refinancing.
Just be mindful that you:
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Johnny Puckett
Answered on Jun 25, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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