Can refinancing a debt affect your credit score? Refinancing or moving debts to a zero percent credit card can make your total debt appear larger on a credit check. Good question. A lot of people refinance...
Good question. A lot of people refinance their houses and take out more money. That means your total debt is going to appear larger after the refinance. That utilization of credit can matter. Actually this came up in seminar I did Monday night about credit cards that offer you 0%. You would think that taking the same balance from one card to a lower rate card would not affect your credit score. A lot of people put their old credit balance into a lower rate card, and then also use that card, so utilization can be a factor.
The scoring model ignores consumer generated inquiries. It doesn't take into account our gender, race, religion, occupation, whether we own or rent, zip code, and of course our income levels, because those don't show up on credit reports. They ignore promotional accounts or review type inquiries. Those are the periodic checks done by your current creditors. They also ignore items under dispute. That's widely misunderstood by people.
