Does applying for auto loan hurt credit?

+1 vote
asked Jan 11 in Buying & Selling by yuiooswe (240 points)
Does applying for auto loan hurt credit?

1 Answer

0 votes
answered Jan 12 by erikgk2 (260 points)
Applying for a few loans shouldn't harm your credit score that much but whenever you apply for a loan the lender will pull your credit rating and check your credit.

Whenever a lender checks your credit they'll put what's known as a hard inquiry on your credit report which can lower your credit score some but after awhile it will no longer affect your credit score.

As long as you don't apply for too many loans in a short amount of time then your credit score and credit rating should not be hurt that much.

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