{"id":355047,"date":"2023-02-14T14:19:33","date_gmt":"2023-02-14T21:19:33","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=355047"},"modified":"2023-03-01T13:36:25","modified_gmt":"2023-03-01T20:36:25","slug":"how-shopping-for-a-new-car-can-affect-your-credit","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/lending\/how-shopping-for-a-new-car-can-affect-your-credit\/","title":{"rendered":"How shopping for a new car can affect your credit"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

Disclosure regarding our editorial content standards.<\/a><\/p>\n\n\n\n

So it\u2019s time for a new car. You\u2019ve been comparing prices, makes and models, and the features you want. While you debate if it\u2019s worth it to pay more for leather seats or a sunroof, you\u2019re probably going to head to a dealership and take a few cars you\u2019re considering out for a test drive. And somewhere along the way, you\u2019ll have to fill out an application that will prompt a credit check.<\/p>\n\n\n\n

Before you fill out any forms, it\u2019s a good idea to make sure you understand the effect a credit check can have on your credit scores, especially because those scores will have an impact on the terms and conditions that come with auto loan financing.<\/p>\n\n\n\n

How shopping for an auto loan can affect your credit<\/h2>\n\n\n\n

Shopping around for the best rate on a new car loan won\u2019t usually affect your credit score. Some people have concerns about getting multiple lender quotes because too many inquiries can hurt your credit.<\/p>\n\n\n\n

According to the Consumer Financial Protection Bureau<\/a>, however, you can apply for several loans within a short time and the credit bureaus will count them as a single inquiry. Just complete all your applications in one 14-day period and your credit score should remain steady.<\/p>\n\n\n\n

You can get your rate from some lenders without a hard credit pull. These \u201csoft\u201d credit pulls don\u2019t count against your score. A hard pull for an auto loan will have an impact on your credit score, but it will be minimal.<\/p>\n\n\n\n

How buying a car can impact your credit<\/h2>\n\n\n\n
\"Payment<\/figure>\n\n\n\n

Payment history counts as 35 percent of your credit score. If you make your car payments on time, buying a car can improve your score. It can also add diversity to your credit profile if you don\u2019t currently have a car loan. This can also improve your score. On the other hand, missed payments on your car loan will lower your credit score.<\/p>\n\n\n\n

Keep in mind that if you space out your shopping trips over a wider period, all the credit pulls (meaning hard inquiries<\/a>) can have a negative effect. If you aren\u2019t sure about buying a car in one 14-day period, wait around six months to try again so the hard inquiries don\u2019t stack up.<\/p>\n\n\n\n

If you want to see what kind of financing you can get from a dealer, depending on your credit, your request could be submitted to multiple lenders<\/a> in order to find the best deal for your situation, according to Experian<\/a>. In each case, the prospective lender may do a credit pull. Note that this may also apply to online auto dealerships.<\/p>\n\n\n\n

How to get your credit ready to buy a car<\/h2>\n\n\n\n

Good credit usually translates to lower interest rates and better terms on your car loan, which means you could save thousands of dollars over the life of the loan. First, check your credit report to see where you stand. Dispute incorrect information that could be lowering your score. You should also bring all your bills up to date and continue to make on-time payments. Finally, if you carry a credit card balance, paying it down to less than 30 percent of your available credit can raise your score.<\/p>\n\n\n\n

Lenders consider a score of 670 or higher to be good credit, while scores of 800 and higher fall into the exceptional category. <\/p>\n\n\n\n

If you need help with your credit before you buy a car, CreditRepair.com<\/a> has the valuable resources you need to improve your credit and get your dream ride.<\/p>\n\n\n\n

\n\n\n\n

Note: <\/a>The information provided on CreditRepair.com<\/a> does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only.<\/p>\n","protected":false},"excerpt":{"rendered":"

When you\u2019re shopping for a car loan, lenders will check your credit. Here\u2019s what you need to know about the impact of these inquiries on your credit score.<\/p>\n","protected":false},"author":71,"featured_media":363100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[437,76],"yoast_head":"\nHow Shopping for a New Car Can Affect Your Credit | CreditRepair.com<\/title>\n<meta name=\"description\" content=\"When you\u2019re shopping for a car loan, lenders will check your credit. 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