Buying a car can certainly affect your credit situation, but for everyone this effect will be different. This is because your FICO® score considers many factors when calculating your score, not just the big ones. Typically, people might expect a drop in their score in the short term. As time passes and you pay your car loan and all other credit obligations on time, you might expect your score to begin to climb back up.
One thing to note is that when shopping around for the best auto loan, your FICO® score does not count inquiries that were made within 30 days of calculating the score. In addition, inquiries older than 30 days which occurred during a typical shopping period count as just one inquiry.
Track the effects of car buying on your score
You need to know where you started in order to understand how car buying (and other actions) will affect your FICO® score. Score Watch will give you today's score and then continually track your Equifax FICO score and credit report. Using this score and report monitoring, you can see exactly what changes to your credit profile are causing your score to change.
"When I was in my early 20s, I purchased my first car with my very own credit and funds… Before long, I was behind a couple of months and my car was repossessed...It taught me to take care of my financial obligations from that point forward."
With Score Watch® you get:
Receive Email alerts or text messages when there are changes to your FICO® score and credit report. Getting alerted of changes to your score and report will help keep you on top of your credit.
Both the positive and negative factors of your credit that are influencing your FICO® score. These factors can help you better understand your credit situation.
Notifications when your FICO® score has changed enough to qualify you for a better interest rate on a home loan or auto loan. You can receive an alert when your score hits a target number that you set.