What Happens To Your Credit Score When You Refinance

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When you apply to refinance your installment loan, a new inquiry will show on your credit report and may temporarily drop your score.

As long as you are making payments on time on your new installment loan you are fine, it does not affect you.

A minimal inquiry is not going to affect you in the long term, inquiries only report to your credit report for 24 months and affect you for the first 12, they are the least of your worries on your credit.

When you are applying for a line of credit or a refi that will help you in the long term it is a good thing overall.

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