It's a reasonable worry. You've worked hard on your credit history and don't want to damage it. The short answer is that a single, well-planned refinance has a small and temporary effect on your credit score. Multiple scattered applications are what cause problems.
How credit enquiries work
When you apply for credit, the lender checks your credit file. That check is recorded as an enquiry. Credit bureaus like Equifax, Experian and illion use enquiries as one factor in your score.
One enquiry for a home loan is normal. Several in a short period can suggest you're being declined or are desperate for credit, which lowers your score more.
How much does it affect your score?
A single home loan enquiry usually causes a small, temporary dip. As you make repayments on time, your score generally recovers and can improve.
The impact also depends on the rest of your file. If you have a long history of on-time repayments and few enquiries, one more makes little difference.
Comprehensive credit reporting helps
Since comprehensive credit reporting began, your file shows your repayment history, not just enquiries and defaults. Years of on-time mortgage repayments count in your favour. Closing old debts in a refinance can also reduce your total credit exposure.
How to avoid unnecessary damage
Don't apply to multiple lenders yourself. Each application is an enquiry. A broker can compare lenders and assess your eligibility before any formal application is lodged.
Get pre-assessment first. We can usually tell you if you're likely to be approved before anything hits your file.
Fix errors first. Get a free copy of your credit report and correct mistakes before applying.
Pay everything on time. Late payments matter more than enquiries.
Space out applications. Avoid applying for car loans, credit cards or BNPL accounts around the time you refinance.
Does refinancing affect your score in other ways?
Closing your old loan: This is shown as closed and paid. It's not a negative.
Paying off other debts (consolidation): Fewer open accounts and lower limits can help over time.
A bigger new loan: Higher total debt isn't scored negatively on its own, but missed payments on a larger loan would be.
When credit score really matters
Lenders look at your credit file, not just the score. Defaults, court judgments, overdue accounts and repayment history matter more than one enquiry. If your file has issues, a specialist lender might be needed. We cover this in our post on improving your credit before applying.
Frequently asked questions
How long do enquiries stay on my file?
Credit enquiries generally stay on your file for five years, but their effect on your score fades much sooner.
Does checking my own credit score hurt it?
No. Checking your own file isn't a credit enquiry and doesn't affect your score.
Will a pre-approval count as an enquiry?
A formal pre-approval usually does. That's why we assess your situation first and only lodge applications that are likely to succeed.
Thinking about refinancing but worried about your credit? Call Finfident on 0424 545 654. We'll assess your options before anything touches your file.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.