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If I get two car loans at once, will it hurt my credit score?
I want to get two car loans at once, as I just paid off my older loans and want to sell the old cars to get cash for a down payment. However, I'm worried about my credit score. Will my two car loans cause my credit score to drop?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Getting two
car loans
will hurt your score, but it’s only temporary. Whenever you get a car loan, lenders will pull a hard inquiry on your credit report, which may cause your credit score to drop about five to 10 points temporarily. To prevent a larger drop, shop for car loans within a 14-day period. When you shop in a 14-day period, credit bureaus count any and all hard inquiries as a single one.
Since you’re getting multiple loans, you should also keep in mind that you will need full coverage auto insurance on both loans per the stipulations from the lender. In this case, signing up with
Jerry
can help you compare rates and find the best coverage. They can even switch the car insurance from your old cars to the new ones to make the process easier than ever.View full answer
- Gregory R.
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