Services
Insurance
Loans
Repairs
Advice
About

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?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Building an improved credit score through a
car loan
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.
MORE: What is a good credit score for a car loan?
View full answer 
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings