Services

PriceProtect™

Compare Car Insurance

Refinance Car Loan

DriveShield™

Drive Well, Earn Perks

GarageGuard™

Get Service Reminders

Insurance

Car Insurance

Compare Car Insurance with Jerry

2024 Car insurance quotes

Cheap car insurance

Best car insurance companies

Shopping for car insurance

Is Jerry a legitimate insurance broker?

Jerry’s Expert Advice

What factors affect car insurance rates?

How does car insurance work?

Types of car insurance

Full coverage car insurance

Car Insurance Estimates

Car insurance by car

Car insurance by location

Home & Renters Insurance

Home Insurance

Compare home insurance quotes

Home & auto insurance quotes

Renters Insurance

Compare renters insurance quotes

Repairs

Car Repair Estimates

Repair Estimates for Popular Services

Oil change cost estimate

Brake pad replacement cost estimate

Battery replacement cost estimate

Timing belt replacement cost estimate

Wheel bearing replacement cost estimate

Spark plugs replacement cost estimate

Rotate tires cost estimate

Transmission fluid service cost estimate

See all 300+ service estimates

Advice

Read Car Content

Browse Jerry Car Advice

How do I know if a mechanic is taking too long?

How to put antifreeze in your car?

What do you do if your car makes a noise?

Read 5,000+ more car advice articles

Check Out Expert Car QnA

Why does my car squeal when I drive?

Do driving warnings go on your record?

How long can you go past your oil change?

How much below MSRP is a good deal?

Learn from 30,000+ more questions

Learn About How We Create Content

Our Editorial Standards

Our Editorial Review Board

Jerry Data & Research

Recent Studies

State of the American Driver (2023)

Memorial Day (2023)

Android vs Iphone (2023)

Auto repairs (2023)

Auto loans study (2023)

Read all recent studies

Comprehensive Data Reports

Jerry Annual Data Report (2023)

Read all data reports

About

MenuIcon

Does refinancing a car loan negatively impact your credit score?

I've read that refinancing your car loan is a great way to save money, but I'm worried about my credit score. Does refinancing hurt your score?

Eric Schad · Updated on Oct 28, 2021

Reviewed by Shannon Martin, Licensed Insurance Agent.

As you mentioned,

refinancing a car loan

can help you save hundreds or even thousands of dollars. But you’re also right in that refinancing your car may impact your credit score.

There’s no need to stress, though, since the hit on your credit score is temporary and you should see it bounce back within a few months.

Refinancing affects your credit score is because the lender conducts a hard inquiry on your credit report, which will decrease credit score about 5-10 points. Again, this is temporary. If you can save hundreds of dollars in the long run, a slight dip to your credit score isn’t a huge deal.

To maximize your overall savings, make sure to shop around for car insurance quotes online, too.

can help you compare quotes from up to 50 top insurers to find the best rates for your coverage level—and sign-up only takes 45 seconds.

MORE:

How to reduce car payments without refinancing your car loan

View full answer

WHY YOU CAN TRUST JERRY

Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Find insurance savings

You Might Also Be Interested

Is Refinancing a Car Worth it?

Refinancing your car can be risky, but the rewards are well worth it if your circumstances are right. Click here to learn more.

The Pros and Cons of Financing a Car

Getting a car loan can help you manage the expense and build your credit, but it also means you’ll pay more in the long run.

Mary Alice Morris

Does Paying Car Insurance Help Build Credit?

Does paying car insurance build credit? Unfortunately not. But for better or worse, your credit score impacts your car insurance rates.

Read Advice From Car Experts At Jerry

Everything You Need to Know About Section 8 Housing in Chicago

Section 8 qualifying families and individuals in Chicago may only have to pay up to 40% of their monthly income in rent.

Louisiana Security Deposit Laws

In Louisiana, there is no limit to the size of the security deposit that a landlord can charge you.

15 Essential Questions to Ask Your Landlord Before Renting

You will gain a better understanding of your lease and of your potential rental unit by asking these 15 questions to your landlord.

What Others Are Asking

Is a Nissan Juke a good first car?

My teenager is taking driving lessons right now. I’m looking for a new family car that could also be a safe choice for them as they get comfortable behind the wheel. Is a Nissan Juke a good first car?

How much does a turbo cost?

I want to boost my engine’s performance with a cool turbocharger, but I’m not sure how much money I’d need to set aside for something like that. How much does a turbo cost?

How can I tell how old a car battery is?

How do I determine how old my car battery is? I bought a second-hand vehicle and want to make sure I maintain it well. The previous owner didn’t mention how old the car battery was, so I’m wondering if I need to replace it.

Browse All Questions

Browse More Content

Car Repair Resources

Insurance for Your Car

Insurance in Your State

Insurance In Your City

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

Car Insurance by Make

Car Insurance by State

Car Repair by Service

AC Compressor Replacement Cost

Battery Replacement Cost

Fuel Injector Replacement Cost

Fuel Pump Replacement Cost

Ignition Coil Replacement Cost

Oil Change Cost

Oil Pan Replacement Cost

Car Insurance by Company

Aspire Advantage

Assurance America

National General