Will you get another hard inquiry on your credit if you refinance a month after buying a new car?

"I just bought a car, but my interest rate is sky-high. I have good credit and income and I want to refinance.

My only concern is the effect that refinancing might have on my credit. Will the refinancing lender pull my credit again?"

“Anytime that you apply for a car loan or an auto refinance, you will get a hard inquiry on your credit. It’s unavoidable, but it shouldn’t drop your score by more than 10 to 15 points, at most.
But if you have a terrible interest rate and can get a far better one, the momentary reduction in your credit score will be well worth it. Not only can you save thousands, but you can also recover quickly from the hit to your credit score.
Even a month into your car loan, you should definitely go for the refinancing.”
Eric Schad
Answered on Jun 03, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free