Does Refinancing Your Auto Loan Hurt Your Credit

Refinancing your auto loan can be a smart move to save money, but a common concern is whether it negatively impacts your credit score. This comprehensive guide will break down the process, explain the credit implications, and help you understand if refinancing is the right financial step for you in 2025-26.

Understanding Auto Loan Refinancing

Auto loan refinancing is essentially replacing your current car loan with a new one, typically with different terms. The primary goals are usually to secure a lower interest rate, reduce your monthly payments, or shorten the loan term. This process involves applying for a new loan, which is then used to pay off your existing loan. The new lender becomes your sole creditor for the vehicle. In 2025-26, with fluctuating interest rates, many consumers are exploring refinancing to optimize their car ownership costs. It's a financial strategy that, when executed correctly, can lead to significant savings over the life of the loan. The core idea is to leverage a better credit profile or prevailing market conditions to obtain more favorable loan terms than what you initially agreed upon.

Why Consider Refinancing?

Several compelling reasons might drive you to consider refinancing your auto loan:

• Lower Interest Rate: If your credit score has improved since you took out the original loan, or if market interest rates have dropped, you might qualify for a lower Annual Percentage Rate (APR). This is often the most significant motivator for refinancing, as it directly reduces the total interest paid.
• Reduced Monthly Payments: Extending the loan term can lower your monthly payments, freeing up cash flow for other financial needs. However, be mindful that a longer term often means paying more interest overall.
• Shorter Loan Term: Conversely, if you can afford higher monthly payments, you might opt for a shorter loan term to pay off your car faster and reduce the total interest paid.
• Removing a Co-signer: If you initially had a co-signer, you might be able to refinance to remove them once your credit history is established and strong enough.
• Accessing Equity (Less Common for Auto Loans): In some rare cases, with specific lenders and depending on the vehicle's value and your loan-to-value ratio, you might be able to refinance for more than you owe, effectively cashing out some of your vehicle's equity. This is far less common for auto loans compared to mortgages.

The Refinancing Process in 2025-26

The process generally mirrors applying for an initial auto loan. You'll need to:

• Research lenders (banks, credit unions, online lenders).
• Gather necessary documentation (proof of income, employment verification, vehicle details, current loan statement).
• Submit an application.
• The lender will review your application, including your credit history.
• If approved, you'll receive a new loan offer with specific terms.
• You'll sign the new loan agreement.
• The new lender will pay off your old loan, and you'll begin making payments to the new lender.

Understanding this process is crucial before diving into the credit implications.

How Refinancing Affects Your Credit Score

The impact of refinancing your auto loan on your credit score is nuanced. It's not a simple "yes" or "no" answer; rather, it depends on several factors. The most immediate effect comes from the credit inquiry, but longer-term impacts are related to how the new loan is managed.

The Role of Credit Bureaus

Credit bureaus (like Equifax, Experian, and TransUnion) use your credit history to generate your credit score. They look at various factors, including payment history, amounts owed, length of credit history, credit mix, and new credit. Refinancing touches upon a few of these, primarily 'new credit' and potentially 'amounts owed' and 'length of credit history'.

Immediate vs. Long-Term Effects

It's essential to distinguish between the short-term and long-term effects. The most noticeable short-term impact is typically a minor dip in your score due to a hard inquiry. However, if you manage the new loan responsibly, refinancing can have a neutral or even positive long-term effect by demonstrating a good payment history with the new lender and potentially improving your credit utilization or debt-to-income ratio.

Key Components of Your Credit Score

To understand the impact, let's briefly review the main components of a credit score:

• Payment History (35%): This is the most critical factor. Making on-time payments on your new refinanced loan will positively impact this.
• Amounts Owed (30%): This includes your credit utilization ratio. Refinancing doesn't directly change your overall debt, but it consolidates it under a new loan.
• Length of Credit History (15%): Closing an old account and opening a new one can slightly shorten your average credit history length, which has a minor negative impact.
• Credit Mix (10%): Having a mix of credit types (e.g., installment loans, revolving credit) is generally positive. Refinancing an auto loan doesn't change your credit mix.
• New Credit (10%): Applying for a new loan triggers a hard inquiry, which falls under this category and can temporarily lower your score.

Understanding these weights helps explain why the impact can vary.

The Hard Inquiry Impact

When you apply for a new loan, including an auto loan refinance, lenders will perform a "hard inquiry" on your credit report. This is a formal check of your creditworthiness.

What is a Hard Inquiry?

A hard inquiry occurs when a lender checks your credit report to make a lending decision. This is different from a "soft inquiry," which happens when you check your own credit or when a company checks your credit for pre-approval offers. Soft inquiries do not affect your credit score.

How Hard Inquiries Affect Scores

Hard inquiries can cause a small, temporary drop in your credit score, typically by a few points. This is because applying for multiple new lines of credit in a short period can be seen as a sign of financial distress or increased risk by lenders. The impact is usually minimal and short-lived, often disappearing from your credit report after two years and affecting your score for about 12 months.

Mitigating the Impact of Hard Inquiries

For auto loan refinancing, the impact of a hard inquiry can be minimized by:

• Shopping Around Strategically: Credit scoring models often allow a "grace period" for rate shopping on certain types of loans. For auto loans, credit scoring agencies typically treat multiple inquiries for an auto loan within a 14-day period as a single inquiry. This means you can compare offers from several lenders within that timeframe without significantly compounding the negative impact.
• Focusing on Quality Lenders: Ensure you're applying with reputable lenders who are likely to offer competitive terms.
• Maintaining Good Credit: If you have a strong credit history, the small dip from a hard inquiry will be less noticeable and recover more quickly.

While a hard inquiry is unavoidable, its negative effect is generally manageable, especially when compared to the potential long-term savings from a successful refinance.

New Loan vs. Old Loan: Credit Score Considerations

When you refinance, your old auto loan account is typically closed, and a new one is opened. This has specific implications for your credit report and score.

Closing the Old Account

When the old loan is paid off by the new lender, the account will be reported as "paid off" or "closed." This can have a minor effect on your credit score in two ways:

• Length of Credit History: The age of your credit history is reduced by the closure of an older account. Since the length of credit history accounts for about 15% of your score, this can have a small negative impact.
• Credit Mix: If the old loan was your only installment loan, closing it might slightly alter your credit mix, though this is a less significant factor.

Opening the New Account

The new refinanced loan appears on your credit report as a new account. This contributes to the "new credit" factor (10% of your score) and can temporarily lower your score due to the hard inquiry. It also adds a new, potentially smaller, balance to your 'amounts owed' category.

The Net Effect

The net effect on your score from closing the old and opening the new account is usually minimal, especially if the old loan was relatively young. The impact of the hard inquiry is often more immediate. However, the long-term benefits of a lower interest rate and consistent on-time payments on the new loan can quickly outweigh these temporary negative effects.

Example Scenario (2025-26):

Sarah refinanced her auto loan after 18 months. Her original loan was 4 years old. When she refinanced:

• Her original loan account was closed. This reduced her average account age by 18 months.
• A new auto loan account was opened.
• She incurred one hard inquiry.

Her score might have dipped by 5-10 points immediately after the refinance. However, by securing a 2% lower interest rate, she saved over $1,000 in interest and reduced her monthly payment by $30. If she continues to make on-time payments on the new loan, her score is likely to recover and potentially improve over the next 12-24 months as the new account ages and her payment history remains positive.

Factors Influencing the Credit Impact

The degree to which refinancing impacts your credit score is not uniform. Several factors play a crucial role:

1. Your Current Credit Score

High Credit Score: If you have a good to excellent credit score (e.g., 700+), the impact of a hard inquiry and the closure of an old account will be minimal. Your score is robust enough to absorb these minor fluctuations, and you're more likely to qualify for the best interest rates, maximizing the benefits of refinancing.

Fair to Poor Credit Score: If your credit score is lower, the impact of a hard inquiry might be more pronounced. Additionally, you might not qualify for a significantly better rate, or you might even be offered a higher rate if your credit has worsened. In such cases, refinancing might not be advisable until your credit improves.

2. The Lender's Policies

Different lenders have varying criteria for approving refinances and different ways they report to credit bureaus. Some might be more lenient with inquiries, while others might have stricter requirements. It's wise to research lender reputations and customer reviews.

3. The Type of Inquiry

As discussed, auto loan refinance applications trigger hard inquiries. The key is to manage these inquiries effectively by shopping within the designated grace period.

4. The Age and History of Your Current Loan

If your current auto loan is very new, closing it might have a more noticeable impact on your average credit history length. If you have a long, positive payment history on the current loan, that history is valuable and will eventually be reflected in your score as the new loan ages.

5. Your Overall Credit Profile

Lenders and scoring models look at your entire financial picture. If you have a low credit utilization ratio on your credit cards and a history of paying other debts on time, the minor impact of refinancing an auto loan will be less significant.

6. The Loan-to-Value (LTV) Ratio

While not directly a credit score factor, a high LTV (owing more than the car is worth) can make refinancing more difficult and might signal to lenders that you are a higher risk, potentially influencing the terms offered.

Understanding these variables helps you anticipate the potential impact on your credit score and make a more informed decision.

When Refinancing Might Hurt Your Credit

While often beneficial, refinancing can indeed lead to a negative impact on your credit score in certain scenarios. Recognizing these situations is crucial to avoid unintended consequences.

1. Applying with Poor Credit

If your credit score has significantly declined since you obtained your original auto loan, applying to refinance might result in a denial or an offer with a higher interest rate than your current one. The hard inquiry itself will also ding your score, leading to a net negative outcome.

2. Multiple Hard Inquiries in a Short Period

Applying for refinancing with numerous lenders simultaneously, outside of the typical rate-shopping window, can lead to multiple hard inquiries. Each inquiry can reduce your score by a few points, and too many in a short span can signal desperation to lenders and negatively affect your score more substantially.

3. Closing a Long-Standing, Well-Managed Account

If your current auto loan is one of your oldest credit accounts and has a long history of on-time payments, closing it can shorten your average credit history length. This is a more significant factor for individuals with shorter overall credit histories.

4. Taking on More Debt (Even with Lower Rate)

If the refinancing process involves extending the loan term significantly, even with a lower interest rate, your total interest paid over the life of the loan could increase. While this doesn't directly hurt your credit score, it's a negative financial outcome that might be masked by a lower monthly payment. Furthermore, if the new loan is for a larger amount than the old one (e.g., adding negative equity), your overall debt burden increases, which can impact debt-to-income ratios and credit utilization if other debts are high.

5. High Loan-to-Value (LTV) Ratio

If you owe significantly more on your car than it's currently worth, lenders may be hesitant to refinance, or they might offer less favorable terms. This situation can also indicate underlying financial issues that might be reflected in your creditworthiness.

6. Missed Payments or Defaults on the New Loan

The most significant way refinancing can hurt your credit is by failing to make timely payments on the new loan. A single missed payment can severely damage your credit score and negate any potential benefits of refinancing.

Example Scenario (2025-26): Mark's credit score dropped from 720 to 640 due to some unexpected medical bills and late credit card payments. He still has 3 years left on his auto loan. He applies to refinance, hoping for a better rate. He gets denied due to his lower score, and the hard inquiry further reduces his score. He also has a high LTV on his car. In this case, refinancing hurt his credit by adding a hard inquiry without any benefit and potentially making it harder to get credit in the future.

When Refinancing Can Help Your Credit

Conversely, refinancing your auto loan can be a positive move for your credit score, especially when done strategically and when your financial situation has improved.

1. Improving Your Credit Score Since Origination

If your credit score has increased significantly since you took out the original loan (e.g., due to consistent on-time payments, reduced credit card balances), you'll likely qualify for a lower interest rate. This demonstrates responsible credit management to future lenders.

2. Consolidating Debt and Improving Payment History

By consolidating your auto loan into a new one with a lower rate and manageable payments, you can ensure a consistent, on-time payment history. This is the most critical factor for credit building. If the new terms make it easier for you to pay on time, it's a net positive for your credit.

3. Reducing Overall Interest Paid (Long-Term Benefit)

While not a direct score boost, saving money on interest over the life of the loan frees up your finances. This can indirectly help your credit by reducing financial stress and making it easier to manage other debts, thereby improving your overall financial health and credit behavior.

4. Demonstrating Responsible Credit Management

Successfully managing a refinanced loan, making all payments on time, and potentially paying it off early showcases your ability to handle credit responsibly. This positive behavior is noted by credit bureaus and can contribute to a higher score over time.

5. Lowering Your Debt-to-Income (DTI) Ratio

If refinancing leads to lower monthly payments without extending the term excessively, it can reduce your DTI ratio. A lower DTI is viewed favorably by lenders and can improve your creditworthiness.

6. Strategic Refinancing for Credit Building

For individuals looking to build or rebuild credit, a refinanced auto loan, managed perfectly, can be a valuable addition to their credit report, showing a history of managing installment loans responsibly.

Example Scenario (2025-26): Emily had a car loan with a 7% interest rate and a good credit score of 750. She noticed interest rates had dropped and her score had improved to 780. She refinanced to a new loan with a 5% interest rate and a slightly lower monthly payment. The hard inquiry caused a minor dip, but the lower interest rate and her continued on-time payments on the new loan reinforced her positive credit history. Over the next year, her score remained strong, and she saved several hundred dollars in interest.

Steps to Refinance Your Auto Loan

Refinancing your auto loan involves a structured process. Following these steps can help ensure a smooth and successful outcome:

Step 1: Assess Your Current Loan and Financial Situation

Before you begin, gather all details about your current auto loan: outstanding balance, current interest rate (APR), monthly payment, and remaining term. Also, review your personal finances: your income, expenses, and overall debt. This will help you determine if refinancing is feasible and beneficial.

Step 2: Check Your Credit Score

Your credit score is a critical factor in determining your eligibility for refinancing and the interest rate you'll receive. Obtain a copy of your credit report from each of the three major credit bureaus (Equifax, Experian, TransUnion) and check your score. Many credit card companies and financial institutions offer free credit score access. Understanding where you stand will help you set realistic expectations.

Before applying for a loan, make sure to check your credit score. If you find any inaccuracies or need assistance in understanding your credit report, consider reaching out to Credit Repair Ease. They are a trusted credit repair company offering professional credit repair services. You can call them at (888) 803-7889 for expert guidance.

Step 3: Research Lenders and Compare Offers

Explore various lenders, including traditional banks, credit unions, and online lenders specializing in auto loans. Look for lenders that offer refinancing options and compare their:

• Interest rates (APR)
• Loan terms (length of repayment)
• Fees (origination fees, application fees, etc.)
• Customer reviews and reputation

When comparing offers, focus on the total cost of the loan, not just the monthly payment. Use online auto loan refinance calculators to estimate savings.

Step 4: Gather Necessary Documentation

Lenders will require specific documents to process your application. Be prepared to provide:

• Proof of income (pay stubs, tax returns)
• Proof of employment (verification from your employer)
• Vehicle information (make, model, year, VIN)
• Current loan statement
• Proof of insurance
• Identification (driver's license)

Step 5: Submit Your Application(s)

Once you've identified a few promising lenders, submit your refinance applications. Remember to do this within a short timeframe (ideally 14 days) to minimize the impact of multiple hard inquiries on your credit score. Most lenders will provide pre-qualification estimates based on a soft credit check before requiring a full application and hard inquiry.

Step 6: Review and Accept the Loan Offer

If approved, carefully review the loan offer. Pay close attention to the APR, loan term, monthly payment, and any associated fees. Ensure the terms align with your financial goals. If the offer is not favorable, you are not obligated to accept it.

Step 7: Finalize the Refinance

Once you accept an offer, you'll sign the loan documents. The new lender will then pay off your existing loan directly. You will then begin making payments to the new lender according to the new loan terms.

Preparing for Refinancing

Effective preparation is key to a successful auto loan refinance. Taking proactive steps can significantly improve your chances of securing favorable terms and minimizing any negative credit impact.

1. Improve Your Credit Score

If your credit score is not where you'd like it to be, focus on improving it before applying. This might involve:

• Paying down credit card balances: Aim to keep your credit utilization ratio below 30%, and ideally below 10%.
• Making all payments on time: Payment history is the most crucial factor in your credit score.
• Checking for errors on your credit report: Dispute any inaccuracies that might be dragging down your score.
• Avoiding new credit applications: Until you've secured your refinance.

2. Gather All Necessary Documents

Having all your financial documents organized and readily available will expedite the application process. This includes:

• Recent pay stubs
• Tax returns (if self-employed or if required)
• Current auto loan statement
• Proof of insurance
• Vehicle registration and title information (if available)
• Identification

3. Understand Your Vehicle's Value

Knowing your car's current market value is important. Websites like Kelley Blue Book (KBB), Edmunds, and NADA Guides can provide estimates. This information is crucial for understanding your Loan-to-Value (LTV) ratio, which lenders consider. If you owe significantly more than your car is worth, refinancing might be challenging.

4. Calculate Potential Savings

Use online refinance calculators to estimate how much you could save. Input your current loan details and compare them with potential new loan terms (lower interest rate, different term length). This will help you determine if the potential savings justify the effort and minor credit impact.

5. Know Your Budget

Ensure that any new monthly payment, even if lower, fits comfortably within your budget. Consider the total cost of the loan over its entire term, not just the immediate monthly savings. A longer term might mean lower payments but more interest paid overall.

By investing time in preparation, you increase your likelihood of a successful refinance that genuinely benefits your financial health.

Choosing the Right Lender

Selecting the right lender is paramount to a successful auto loan refinance. The best lender for you will offer competitive rates, favorable terms, and a smooth application process. Here’s how to navigate the choices:

1. Compare Interest Rates (APR)

The Annual Percentage Rate (APR) is the most critical factor. It includes the interest rate plus any fees associated with the loan. A lower APR means you'll pay less interest over the life of the loan. Always compare APRs from multiple lenders.

2. Evaluate Loan Terms

Loan terms dictate the repayment period. Shorter terms usually mean higher monthly payments but less total interest paid. Longer terms mean lower monthly payments but more total interest paid. Choose a term that aligns with your budget and financial goals.

3. Look at Fees

Be aware of any fees associated with the refinance, such as:

• Origination fees: A fee charged for processing the loan.
• Application fees: Some lenders charge a fee to apply.
• Prepayment penalties: Fees for paying off the loan early.

Factor these fees into your total cost calculation.

4. Consider Lender Type

• Banks: Often offer competitive rates and a wide range of services, especially if you're an existing customer.
• Credit Unions: Typically offer lower interest rates and fees than banks, but membership requirements may apply.
• Online Lenders: Can offer quick approvals and competitive rates due to lower overhead costs.

5. Read Reviews and Check Reputation

Research lenders online. Look for customer reviews and ratings on sites like the Better Business Bureau (BBB) or consumer review platforms. A lender with a good reputation and positive customer service is more likely to provide a positive refinancing experience.

6. Understand Pre-Qualification vs. Pre-Approval

Many lenders offer pre-qualification, which involves a soft credit check and gives you an estimate of the rates you might receive. This doesn't impact your credit score. Pre-approval, however, requires a hard credit check and provides a more concrete offer.

By diligently comparing these aspects, you can identify a lender that offers the best combination of rate, terms, and service for your auto loan refinance.

Understanding Loan Terms

Beyond the interest rate, the specific terms of your refinanced auto loan are crucial. Misunderstanding these can lead to unexpected costs or financial strain. Here’s a breakdown of key terms to scrutinize:

1. Annual Percentage Rate (APR)

As mentioned, this is the true cost of borrowing, expressed as a yearly rate. It includes the interest rate and certain fees. Always compare APRs, not just advertised interest rates.

2. Loan Term (Repayment Period)

This is the length of time you have to repay the loan, typically measured in months or years. Common terms range from 36 to 72 months. A shorter term means higher monthly payments but less total interest paid. A longer term means lower monthly payments but more total interest paid. For example, a 60-month loan will cost more in interest than a 48-month loan, even at the same APR.

3. Monthly Payment

This is the fixed amount you'll pay each month. Ensure this payment fits comfortably within your budget. While a lower monthly payment might seem attractive, ensure it doesn't come at the cost of paying significantly more interest over time.

4. Total Interest Paid

This is the sum of all interest you will pay over the entire life of the loan. Refinancing is most beneficial when it significantly reduces this amount. Use loan calculators to compare the total interest paid on your current loan versus the proposed refinanced loan.

5. Fees

Be vigilant about all fees. These can include:

• Origination Fee: A one-time fee charged by the lender for processing the loan.
• Application Fee: Some lenders charge this upfront.
• Late Payment Fees: Penalties for missing a payment deadline.
• Prepayment Penalties: Fees charged if you pay off the loan early. Ensure there are none if you plan to pay extra or refinance again later.

6. Loan-to-Value (LTV) Ratio

This is the ratio of your loan balance to your car's current market value. Lenders often have limits on the maximum LTV they will finance. If your car has depreciated significantly, you might have a high LTV, making refinancing difficult or impossible.

7. Co-signer Requirements

If you had a co-signer on your original loan, you might be able to refinance to remove them if your credit has improved sufficiently. Conversely, if your credit is weak, you might need a co-signer for the refinance.

Thoroughly understanding these terms ensures you make an informed decision and avoid hidden costs or unfavorable arrangements.

Alternatives to Refinancing

While refinancing is a popular option, it's not the only way to manage your auto loan or improve your financial situation. Consider these alternatives:

1. Paying Extra on Your Current Loan

If your goal is to pay off your car faster and reduce the total interest paid, you can simply start making extra payments on your existing loan. Many lenders allow this without penalty. Even adding a small amount, like $20-$50 per month, can make a significant difference over time. Be sure to specify that extra payments should be applied to the principal.

2. Negotiating with Your Current Lender

Sometimes, your current lender might be willing to work with you to adjust your loan terms, especially if you've been a loyal customer with a good payment history. It's worth a phone call to inquire about potential modifications, though they are less likely to offer a lower interest rate than a new lender.

3. Debt Consolidation (for Multiple Debts)

If your auto loan is just one part of a larger debt picture, you might consider a debt consolidation loan or balance transfer to a lower-interest credit card. This could potentially streamline your payments and reduce overall interest, but it's crucial to ensure the new consolidated debt terms are truly beneficial.

4. Improving Your Credit Score Without Refinancing

If your primary goal is to improve your creditworthiness for future borrowing, focus on building a strong credit history. This involves consistent on-time payments, managing credit utilization, and avoiding unnecessary credit applications. A better credit score will make future borrowing, including potential refinancing, more advantageous.

5. Selling the Vehicle

If your car is worth more than you owe, or if you no longer need it, selling it and paying off the loan might be an option. You could then purchase a less expensive vehicle or manage without one, depending on your circumstances.

6. Waiting for Better Market Conditions

If current interest rates are high or your credit score is not ideal, it might be best to wait. Continue making on-time payments on your current loan and focus on improving your credit. Market conditions and your financial standing can change, making refinancing more viable later.

Exploring these alternatives ensures you make the most informed decision that aligns with your specific financial needs and goals.

Making an Informed Decision

Deciding whether to refinance your auto loan is a significant financial choice. It requires careful consideration of the potential benefits against the potential drawbacks, particularly concerning your credit score.

Weighing the Pros and Cons

As we've explored, refinancing can lead to lower interest rates, reduced monthly payments, and the potential for significant savings. However, it also involves a hard credit inquiry, the closure of an existing account, and the opening of a new one, all of which can have a temporary negative impact on your credit score. The key is to determine if the long-term financial gains outweigh these short-term credit fluctuations.

When Refinancing is Likely a Good Idea:

• Your credit score has improved significantly since you took out the original loan.
• Current market interest rates are lower than your current loan's APR.
• You can secure a lower APR and/or a more manageable monthly payment without excessively extending the loan term.
• You have researched lenders and found competitive offers.
• You are confident in your ability to continue making on-time payments.

When Refinancing Might Not Be Advisable:

• Your credit score has declined, and you might not qualify for a better rate.
• You only have a short time left on your current loan.
• The potential savings are minimal after accounting for fees.
• You are struggling to make your current payments, as a new loan might not solve underlying budget issues.
• You have recently applied for or opened several other lines of credit.

The Long-Term Perspective

Ultimately, responsible credit management is about building a positive financial history. A minor, temporary dip in your credit score due to a well-planned refinance is often a small price to pay for substantial long-term savings. The most critical factor for your credit score is consistent, on-time payments. If refinancing enables you to manage your loan more effectively and continue making timely payments, it's likely a beneficial move.

By understanding the nuances of how auto loan refinancing affects your credit, carefully assessing your financial situation, and comparing offers diligently, you can make an informed decision that supports your financial well-being in 2025-26 and beyond.

In conclusion, refinancing your auto loan does not inherently "hurt" your credit in the long run if managed wisely. The process involves a temporary dip due to a hard inquiry, but the potential for long-term savings through a lower interest rate and improved financial management often outweighs this short-term effect. Always prioritize improving your credit score before applying, shop around strategically, and commit to making timely payments on your new loan to ensure a positive outcome for your credit health.