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?

Answer
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.
Eric Schad
Answered on Nov 18, 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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