Does Buying a Car Help Your Credit? The Best Advice for 2022

When you're driving away from the dealership in your brand-new car, you're probably not asking yourself, “Does buying a car help your credit score?”

However, that's an important question to answer. Let's find out how your credit score could be impacted by signing that car loan.

Top Ways Buying a Car Affects Your Credit

Buying a car has the potential to increase your credit score, but it can also go the other way and drop.

A hard inquiry will lead to an automatic lowering of a few points of your credit score for a couple of months.

Hard Inquiry

The good thing is that even though your car loan application gets forwarded to many lenders, major credit bureaus will all count as a single inquiry.

As soon as the debt is accepted, you will see a drop in your credit score as your liabilities increase. Depending on the price of the car and the loan amount, the fallen points may vary.

Acquiring Debt

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