How many points will my credit score go up with a car loan?
I'm working on getting a car loan for my next vehicle. My credit is decent right now, but I'd love it if the loan bumped my score up a bit. How many points will a car loan boost your credit score?
requires patience. While there is no exact number for how much your credit score will increase, it will improve over time as long as you continue to make timely payments on your loan.
This increase will be thanks to the increase in credit history and your credit mix (revolving and installment loans).
Keep in mind: Initially, applying for car loans can actually cause a temporary decrease in your credit score—around five to ten points—as a result of hard inquiries on your credit report. However, hard inquiries are removed from your credit history after 24 months, so the drop is only temporary.
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