Does Buying a Car Help Your Credit? The Best Advice for 2022

When you’re driving away from the dealership in your brand-new car, you’re probably not asking yourself, “Does buying a car help your credit score?” 

Buying a car has the potential to increase your credit score, but it can also go the other way and drop. How are you to know?

It all depends upon when and how you make the payments for your car loan.

To find out if you can afford a car or not, consider if you can make timely payments, which will result in your credit score going up. 

However, if you cannot make payments on time or even miss a few, you will see a negative impact on your credit scores.

When you apply for a car loan, the first course of action your account goes through is a hard inquiry.

Unfortunately, a hard inquiry will lead to an automatic lowering of a few points of your credit score for a couple of months. 

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