Will refinancing my car loan hurt my credit score?

Refinancing a car loan can save your money if you can get a lower interest rate. The first step of auto refinancing is to talk to different lenders about rates and loan terms. CU SoCal saves Members money every day through vehicle loan refinancing, and will drop your rate from another lender by at least 2%. If approved for a loan refinance, the remaining amount you owe on your first loan will be paid off and you will start making payments on the new loan. A small drop in credit score is likely, but most scores increase as on-time monthly loan repayments are made.