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How many points does a car loan increase your credit by?

I have a credit score of 770, but I want to push it up into the next tier. Will a car loan do it? How many points will a car loan improve my credit by?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
While a car loan will temporarily lower your credit score, paying it off over time should help your credit score rise.
Good question! Building your
credit score
above 780 puts you into the superprime range, which means you can get the best rates possible. However, if you want to get there with a car loan, it’s all about patience.
Applying for the loan: A
car loan
will actually lower your score by about five to 10 points at first. This is due to the hard inquiry or credit pull when you take out the loan. But you shouldn’t worry; this is only temporary.
Paying off the loan: As you continue to pay off your car loan, you should see your credit score rise, as long as you make the payments on time. In the meantime, you can continue to pay off other debt, specifically credit cards, to make sure that your credit score continues to go up.
Best of luck with your credit score!
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