At iLending, we talk to people every day who are ready to take control of their finances, but are worried that refinancing their automobile loan might hurt their credit score.
Here’s the truth: refinancing can affect your credit, but it doesn’t have to hurt it much – or for long. With the right approach (and the right team guiding you), refinancing your auto loan can actually help your credit over time while saving you money month after month.
In this article, we’ll walk you through how refinancing an automobile loan works, what kind of impact it might have on your credit, and most importantly – how to do it smartly, with minimal impact and maximum benefit.
Refinancing isn’t just about chasing a lower interest rate, it’s about gaining breathing room in your budget. Many of the clients we work with at iLending were initially stuck in high-interest auto loans, sometimes due to past credit issues or dealer markups. Others just didn’t realize they had better options.
By refinancing, you can:
In short, refinancing puts you back in control.
There are a few ways refinancing can touch your credit – but most of them are minor or temporary.
When you apply to refinance, lenders will do a hard inquiry to check your credit. A single hard inquiry typically lowers your score by just a few points, and the impact fades within a few months.
Here’s the key: if you apply with multiple lenders within a short window (usually 14–45 days), credit scoring models treat them as one inquiry. This “rate shopping” window is designed to let consumers compare offers without getting penalized multiple times.
At iLending, we help manage this process for you. Because of our strong lender network, you only have to apply once through us, we handle the shopping for you. That means less work, and less credit impact.
When your original auto loan is paid off and a new one is opened, your credit report will reflect those changes. This might cause a small dip due to the age of accounts changing, but it’s typically minimal and short-lived.
What matters more over time is how you manage the new loan. Lower payments can make it easier to pay on time, which helps your credit grow stronger.
Now that you know what to expect, here’s how to refinance smartly:
Before applying, take a look at your credit score so you know where you stand. Many people qualify for better terms than they expect, especially if it’s been a year or two since your original loan.
At iLending, we don’t require perfect credit to help you refinance. In fact, we specialize in helping people who’ve been overlooked or underserved by traditional lenders.
Instead of applying with five different lenders and racking up hard inquiries, work with one company that can access multiple lenders for you. That’s what we do at iLending.
Our nationwide network of lenders gives you access to rates and terms not typically available to the general public – and we’ll match you with the one that fits your situation best.
If you’re planning to apply for a mortgage or a major loan in the next few months, you might want to hold off on refinancing until after that process is complete. But if not, refinancing your car now can reduce monthly expenses, making it easier to manage future credit needs.
One of the most important things you can do for your credit is pay every bill on time, including your original auto loan, right up until the day it’s refinanced. There’s no faster way to hurt your score than a missed or late payment.
We make sure the timing of your refinance is handled with care, so there’s no confusion about due dates or overlapping payments.
Here’s what you can expect:
In many cases, people actually improve their credit over the months after refinancing, because the new terms are easier to manage. Lower stress, fewer missed payments, and real financial progress.
At iLending, our goal isn’t just to refinance your auto loan – it’s to put you in a better financial position overall.
We’ve helped thousands of clients save money and reduce financial strain. Many of them were told “no” by other lenders. We said yes, and then delivered results.
Here’s what sets us apart:
With an average savings of $145/month*, our clients often put that money toward paying down other debts, building emergency savings, or just breathing a little easier.
If interest rates have dropped since you took out your original loan, or if your credit has improved, now could be a great time to refinance. Even if rates haven’t dropped, extending the loan term slightly can still lower your monthly payment and give you some much-needed financial breathing room.
And with iLending, you can check your options without impacting your credit. Our pre-qualification process is a soft pull only, which means you can explore what’s available without any risk to your score.
Refinancing your automobile loan doesn’t have to be scary, or damaging to your credit. With the right approach, the right timing, and the right partner, you can make a smart financial move with confidence.
At iLending, we believe everyone deserves access to better loan terms, real savings, and peace of mind. We’re here to make that possible, no matter your credit history.
Let’s recap:
Applying with iLending takes just minutes, won’t impact your credit score, and could save you a significant amount each month. There’s no obligation and nothing to lose—but a lot to gain.
It’s as easy as A-B-C:
A: Apply online in just a minute or two
B: Browse custom loan options designed for your situation
C: Connect with your knowledgeable Loan Consultant for personalized help
Join the thousands of smart drivers who’ve taken control of their auto loans and made their money work harder.
Start your refinancing journey today – and take the first step toward a better financial life.