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Will refinancing my auto loan hurt my credit?

Lot's of mysteries out there about refinancing and a number of people asking themselves 'will refinancing my auto loan hurt my credit?'
In short: refinancing will absolutely not hurt your credit! Quite the contrary. There's a good chance you have the app CreditKarma installed on your phone. If you take a peak at what factors determine your credit, you will find the following:

  • Number of Hard Inquired
  • Age of Credit history
  • Credit Card Utilization
  • Total Accounts
  • Derogatory Marks
  • Payment History


In sum, refinancing will not affect these marks negatively. Refinancing does require an inquiry on your credit. The inquiry, however, does not necessarily need to be a hard inquiry. We only do a 'soft credit pull', which allows us to see all the necessary credit information while not leaving a mark on your credit.

The other item refinancing will affect is your payment history. After you refinance your loan, you will have a lower rate and lower monthly payment. As a result, the likelihood that you will be able to establish a perfect payment history increases. Hence, your credit score will improve as a result of your ability to make your payments.


Haven't explored refinancing yet?
WithClutch.com is a fully digital platform that lets car owners like you do so from the comfort of their own home. No need to set a foot in a bank or credit union. You can lower your rate or get cash in as little as 20 seconds.

Follow three simple steps to refinance your auto loan, get approved in seconds and save thousands in minutes.

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WithClutch, LLC

2120 E El Parque Dr

Tempe, AZ 85282