Refinancing may lower your credit score by some points, but the impact on your credit rating will only be temporary. Applying for a loan creates a difficult enquiry. Refinancing may be worth it if rates have fallen since you applied for your loan. Refinancing your auto loan can affect your credit rating both positively and negatively, depending on your financial situation.
Credit inquiries are likely to lower your credit score, for example, but your ability to make timely car payments through refinancing can improve it. So if you plan to apply for a mortgage or other major loan soon, it might be worth putting off refinancing your car. Because refinancing usually makes it easier to repay the loan more quickly by reducing monthly payments, credit utilization may decrease later of refinancing.