Should I go with the first car loan I get so it won't hurt my credit score?
I'm worried about lowering my credit score when I shop for a car loan. I know that each lender pulls your credit, so I'm thinking that I should just go with the first car loan that comes my way so it doesn't impact my credit. Is this a good plan?
“That’s not a great plan at all, but don’t feel bad. Your logic is sound for a first-time buyer.
Never, ever, ever take the first car loan that comes your way. Chances are that it’s not the best deal, and you’ll leave money on the table as a result.
While you may be worried about your credit, there are ways around it. All hard inquiries pulled for an auto loan within 14 days count as one inquiry. As long as you shop within that period, the impact on your credit score will be minimal.
And now for the most important rule: When you’re financing a car, always, always, always shop around to get the best rate. By doing so, you can avoid paying too much, getting taken advantage of, or going upside down on a car loan. Practice makes perfect, but try not to get burned your first time out on your own by following these tips.
Don’t forget that when you buy a new vehicle, you will need proper coverage, so be sure to factor that into your overall costs of car ownership. If you haven’t already found insurance, use the free Jerry app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”
MORE: What is a Car Lien?
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