Will getting rejected for a car loan hurt my credit?
My credit score is already kind of blah. I don't know if it can handle another blow.
Technically, the answer is no. The fact that you have been declined for a car loan does not, in and of itself, impact your credit.
The bad news is that while the denied application has no impact, the inquiry the lender used to review your credit report may have a negative consequence.
When you apply for a loan, the lender makes what is called a hard inquiry on your credit. A hard inquiry can have a negative impact on your credit score, though the impact usually lasts for just a few months.
It does help to know that credit-scoring models allow for a window of 14 to 45 days for numerous inquiries. When multiple hard inquiries for the same type of loan are submitted in that time frame, they are considered to be one. This is because they understand that borrowers need to shop around and apply for multiple products to get the best rate.
Don’t worry, you’ll eventually get approved for a car loan!
When you do get your new car, you will need auto insurance. The Jerry app is a good place to start. A licensed broker, Jerry does all the hard work of finding the cheapest quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even cancel your old policy for you.
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