"My pre-approved new car loan expires in a week. If I decline to take the loan, will this affect my credit score? "

I initially thought I needed the loan, but my grandma has offered to loan me some money instead, and with her I don't have to pay interest! This is why I want to decline the bank's loan.

“The act of rejecting a car loan itself (pre-approved or otherwise) won’t impact your credit score. However, the lender almost certainly performed a hard inquiry on your credit report. As a result, you may see your credit score fall by as much as 10 points.
Hard inquiries fall off your credit report after two years, so this will eventually have no impact on your credit. But to recoup those 10 points, continue to make payments on other debt until you find another lender or apply for another loan. “
Eric Schad
Answered on Apr 05, 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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