This inquiry typically stays on your report for two years but only affects your score for one. Most borrowers see a minor dip of .

When you apply for a refinance, the lender performs a to assess your risk.

Refinancing involves replacing an existing debt—most commonly a mortgage, auto loan, or personal loan—with a new one that ideally offers better terms. While the primary goal is often to save money or lower monthly payments, the process has a nuanced, multi-stage impact on your credit report. The Impact on Your Credit Report 1. The Hard Inquiry