5 mins read 
Key Takeaway
- A hard inquiry usually lowers FICO® scores by fewer than 5 points for most people.
- Rate shopping helps: multiple auto-loan inquiries within about 14–45 days may count as one for scoring.
- Through Caribou, checking your rate uses a soft pull, which doesn’t affect your credit score; a hard pull may happen only if you move forward with a lender.
Refinancing your car loan can cause a small, temporary dip in your credit score, mostly because lenders typically run a hard credit inquiry when you formally apply. The good news: if you shop rates within a short window, credit scoring models often treat multiple auto-loan inquiries as a single inquiry for scoring purposes.
Why refinancing could lower your score
Refinancing replaces your current auto loan with a new one. During that process, your credit score can be affected in two main ways:
1) A hard credit inquiry (the most common “ding”)
When you submit a full application, the lender typically checks your credit with a hard inquiry. That can lower your score slightly, usually fewer than 5 points, and the impact often fades with time if the rest of your credit stays healthy.
2) A new loan on your credit report
A refinance is a new installment loan that can slightly reduce your average age of accounts, and change your loan balances and payment history reporting.
For many people, these effects are small compared with the savings a lower rate can create.
Will checking refinance rates hurt your score?
It depends on whether the lender uses a soft or hard pull.
- Soft credit pull: doesn’t affect your score (common for prequalification/preapproval).
- Hard credit pull: may affect your score slightly (common when you formally apply).
Through Caribou, you can check your refinance options with a soft pull, and if you choose to continue with a loan offer, you or a lending partner may request your full credit report (a hard pull).
Ready to save?
At Caribou, we make refinancing easy, transparent, and fast. Get pre-qualified today to see how much you could save—it won’t affect your credit score.+ Take charge of your finances this year and start saving through Caribou.
How to minimize the credit-score impact when you refinance
Here’s the playbook to keep any dip as small as possible:
Shop within a tight window
Credit scoring models expect people to compare offers. Many models treat multiple auto-loan inquiries made in a short timeframe as one inquiry for scoring: often described as 14–45 days depending on the model.
Tip: If you can, do your rate shopping and submit any full applications within two weeks.
Start with prequalification when possible
Prequalification often uses a soft pull, so you can compare likely rates without affecting your score.
Avoid stacking other new credit at the same time
Opening a new credit card or applying for multiple loans while refinancing can add more inquiries and new accounts.
Keep everything else steady
On-time payments and low credit-card balances matter far more than one inquiry. If you’re close to applying for other major credit (like a mortgage), consider timing your refi carefully.
How long does a refinance inquiry affect your credit?
A single hard inquiry typically has a small impact and may affect your score for up to about a year, even though the inquiry can remain on your credit report longer.
And if you rate shop within a short window, multiple inquiries may be grouped as one, which helps reduce the effect.
When refinancing can be worth it (even if your score dips)
If refinancing helps you get a lower APR, reduce your monthly payment, shorten your term (or choose a term that fits your budget), then a small, temporary score change may be worth it.
What credit score do you need to refinance a car?
There’s no single universal minimum — requirements vary by lender and depend on your credit profile, income, loan-to-value and the vehicle.
As a general benchmark, Experian categorizes FICO® scores 670–739 as “Good.”
If your score is lower, you still may have options, but you might see fewer offers or higher rates.
Start refinancing now and see how much you could save.
Caribou can help you compare real offers in minutes — with no impact to your credit score.
FAQs: Credit score impact
Does refinancing hurt your credit score a lot?
Usually no. For most people, one hard inquiry lowers a FICO® score by fewer than 5 points.
Will multiple refinance applications hurt more?
They can, but credit scoring models often treat multiple auto-loan inquiries within a 14–45 day window as a single inquiry for scoring.
Will checking my rate through Caribou hurt my score?
Caribou states checking your refinance rates/terms uses a soft credit pull that won’t affect your score; moving forward with an application may involve a hard pull.
How long does a hard inquiry affect my score?
The score impact can last up to about a year, even though the inquiry can remain on your credit report longer.
Is refinancing bad if I’m about to buy a house?
Potentially. Mortgage underwriting can be sensitive to recent credit activity. If you’re planning to apply for a mortgage soon, consider talking to a loan officer first.
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