Does getting preapproved for a car loan impact your credit score?

My mom told me that I should get preapproved for a car loan before I shop for a car. I'm worried about what this might do to my credit score. Does a preapproval affect your credit score?

Answer
Yes, getting preapproved for a car loan can hurt your credit score. But don’t worry—it’s only temporary.
When you get preapproved, the lender will conduct a hard inquiry on your credit report. This may result in a drop of five to ten points on your credit score. However, credit bureaus allow you to get as many hard inquiries as you want over a 14-day period, and they all count as just a single hard inquiry. So it makes sense to shop around for the best rate during this time.
If you’re shopping for car loan rates, you should also start your search for car insurance. If you’re taking out a car loan, you’ll need full coverage car insurance. Using the Jerry app, you can compare rates from over 50 car insurance companies to find the best rate for your needs.
Eric Schad
Answered on Nov 11, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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