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How much will car loan approval from Bank of America impact my credit score?
I want to get a car loan from Bank of America, but I'm worried it will hurt my credit. How much will my credit score fall upon approval?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
If you get a
car loan
approval from a lender like Bank of America, you can expect your credit score to fall somewhere between five and 10 points. The reason that your credit score will drop this much is due to the hard inquiry on your credit report (when lenders pulling your credit).Lenders pull your credit to see what’s on your actual credit report and assess your creditworthiness. It drops your credit score because it adds a level of uncertainty to your credit score, which increases your risk in the eyes of the lender, even a large one such as Bank of America.
But don’t fret. This drop in your score will only last about a year or two and will usually be offset if you make payments on time toward your car loan. With steady payments, you should see your credit score rise over the next few months to a year.
If you need more money to throw at your car loan, take a glance at your car insurance policy. Try using the number-one-rated car insurance app,
Jerry
, to help you find lower rates. Jerry compares personalized quotes from more than 50 top providers and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!View full answer
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