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Posted in Auto Loans
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Question By
hjewellj

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Why did buying a car lower my credit score?
I bought a car the day after Christmas, and paid of my old car in full during the process. There have been a few new inquiries into my credit, which is the reason I believe it dropped so much. But I was of the understanding that you could shop for the best deal as long as you made the inquiries within a short time; in my case it was only over 2-3 days. Is there anyway to remedy this situation?

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If the inquiries were properly coded they will count as one for scoring purposes but they will show up separately on your reports.

As for your score, when you add a new account you reduce your AAoA and incur a hard pull.  For a new auto loan you have a high balance to loan amount which is a negative as well.

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