"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. “
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Will my renters insurance cover a bicycle stolen away from home?
"I parked my bicycle outside a bakery and secured it with a lock. When I returned just 20 minutes later, the bike was gone. Will my renters insurance cover my bike, even though it was stolen far away from my apartment? "
Apr 13, 2021
Can I take over my girlfriend's car loan?
My girlfriend and I are moving in together. She has two years left on a car loan. Can I take over this loan and get insurance for the car?
Mar 12, 2021
What happens when the person at fault for an accident doesn’t have enough insurance?
I have a liability-only policy. Another driver hit my car and one other car in an accident and both are totaled. The guy that is at fault for the accident only had $5,000 in property damage coverage. His insurance company is waiting for the total damage from the other person in the claim. They won't pay until I sign a release.
Apr 29, 2021