Should I apply for a BMW 3-Series car loan if I want to apply for a home loan in the next six months?

"I want to buy a used BMW 3-Series for about $18,000. I also want to start house shopping in the next six months.

Will shopping for a car before my mortgage hurt my credit score?"

“You’ll get a hard inquiry on your credit score for your car loan. However, if you apply with several lenders over the course of a 14-day period, it should count only as a single hard inquiry.
That said, a hard inquiry will only lower your score by 10 points. If you have multiple inquiries, your score will drop about 40 points max why applying for your BMW car loan. Unless your credit score is already struggling, getting the car loan first shouldn’t be a huge deal.
Just remember that both lenders will look at your credit utilization ratio, as well as your debt-to-income ratio. These are often just as important as your credit score itself.”
Eric Schad
Answered on Jun 09, 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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