"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.
Answer provided by
Answered on Apr 05, 2021
“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.
Browse by topics
What others are asking
I'm getting ready to buy my first car, so where can I buy the cheapest car insurance?
I'm 20 years old and buying my first car for about $1,200. Because the car isn't worth all that much, I only need liability insurance. Where can I find affordable insurance?
Apr 13, 2021
What type of car insurance do I need if I'm transporting medical clients to appointments?
My partner has an uninsured car. However, I want to use the car for a new job transporting medical clients/patients to their appointments. What type of car insurance do we need, and how should I insure the vehicle?
May 04, 2021
"Can I finance a car if I don’t have a valid driver’s license after a DUI? "
"My license was suspended because of a DUI in which my car was totaled. I can now get my license reinstated. The dealer pre-approved me for a car loan, but to finalize the agreement, they said they need a valid driver's license. Am I out of luck? "
May 05, 2021