Question by Hallie: How long does is take for credit score to go back up?
We recently refinanced our underwater mortgage. When applying for a car loan today, we discovered that our credit score dropped over 100 points. When we checked the Equifax report it showed 11 credit inquiries in the 6 months it took to close the refi. This seems to be the only reason for the drop as our score was previously over 800. How long should it take for the score to go back up?
Answer by bdancer222
Those 11 inquiries over 6 months did ding your score, but no where near 100 points. Mortgage lender inquiries within a 3 to 4 week period only count as 1. So even if your refi was strung out over 6 months, those 11 inquiries are not as bad as you thought.
The real reason your score dropped 100 points is the refinace itself. It’s a new loan. The old loan was paid off and closed. This means that most of your debt is brand new. In about 6 months your score will begin to rebound, but it will take a while to get back to that 800+ point.
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