Will either a lease buyout or a new car loan affect my credit more?

"I'm deciding between buying out my loan or shopping for a new car, but I'm worried either option might affect my credit.

Will every lender do a hard check on my credit? Which will affect my credit more?"


“Both the lease buyout and a new car loan require lenders to pull your credit history, also known as a hard inquiry on your credit score.
However, you can usually shop around at a variety of dealers all within a 14-day time span, and it will only go down as one hard inquiry.
If you’re shopping around at banks and lenders, the same rule applies.
So to answer your question, both will affect your credit score the same way. Whichever avenue you choose to pursue is a personal preference.”
Eric Schad
Answered on Jul 26, 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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