Question: Does Applying For Multiple Car Loans Affect Credit?

Question: Does Applying For Multiple Car Loans Affect Credit?

If you apply for several credit cards within a short period of time, multiple inquiries will appear on your report.

Looking for new credit can equate with higher risk, but most Credit Scores are not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time.

How much does a car loan affect your credit score?

Taking out a car loan can have a few different effects on your credit score. First, it will increase your total debt load, which may cause a slight drop in your score based on a new credit utilization ratio. And since you’ve just established this loan, there’s no payment history yet.

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