 TITLE: Will Refinancing My Auto Loan Hurt My Credit? CONTENT: When Is It a Bad Idea to Refinance a Car Loan?\n----------------------------------------------\nAn auto loan refinance can be a smart way to save money, but there are several circumstances in which it may not make sense:\n*   If interest rates have increased since you took out your original car loan, it may be impossible to get a better financing rate, even if your credit scores have also improved in the interim. (As noted above, this has not been a big concern in recent years, but circumstances can always change.)\n*   If you've paid off the majority of your car loan, the benefits of refinancing may be negligible, as origination fees on the new loan could offset the savings you'd get by refinancing just 12 to 18 months of payments. (If you're in expense-cutting mode, the need to stretch out your payment term and lower payments could overrule this consideration.)\n*   If you purchased your car new or near new and have since logged exceptionally high mileage, or if it's been damaged in a crash, flood or other mishap that'll significantly reduce its resale value, you may not be able to get a loan that covers what you owe on the original loan.\nFinally, a strategic consideration: If you're planning to seek a mortgage or other large loan in the next six to 12 months, it's wise to refrain from applying for any credit, including auto refinancing, that could cause a dip in your credit score. Avoiding new credit applications can help you present your best possible credit score when you submit your mortgage application. END