Will applying for a car loan at a dealership hurt my credit score?

Is it true that applying for a car loan at a dealership hurts your credit score? I want to finance a car through the dealer, as they're offering a 1.9% APR promotional deal. However, I've heard that applying for financing through a dealership can hurt your credit.

Answer provided by
Eric Schad
Answered on Jul 14, 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.
“When you apply for financing, the dealer will run your credit report. This is known as a hard inquiry.
When you get a hard inquiry on your credit, it can lower your credit score by around 10 points, but rarely more than that.
So yes, it will hurt your credit, but it’s only temporary and will rarely have an impact on what interest rate they offer you.
Keep in mind that any loan application will have an effect on your credit, whether it be at a dealership or your bank.”

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