Car Loans: The Impact of Rate-Shopping on Your Credit

Did you know that credit check requests can decrease your overall credit score? It is true, and these requests can accumulate when done consecutively. However, it depends on the individual, score number, and the type of report request. Credit bureaus can lower an average of five points off your total score for each inquiry, but most will count multiple inquiries as a single inquiry as long as they happen within a 30-day period.

For this reason, if you are looking for the best car loan rate, you may want to be careful and consider your options before you start applying for car loans. Your best option is to focus finding a loan after careful research in a short amount of time, preferably in less than a month’s time. However, when thinking about the main picture, it is important to take into account that finding the best interest rate in a car loan can be more important as it will save you thousands in the long run, as opposed to the modest dent on your credit score.

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