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Posted in Auto Loans
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sailingjbg

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Will applying for an auto loan and not using it affect my credit score?

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Any time you apply for credit

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Weather you use it or not. it will generate a hard inquiry on your report.  That has a small effect on your score.  Some lenders can do whats called a "soft Inquiry" if you are being "Pre-Qualified".  You would need to ask the loan manager at your bank if the application would generate a hard inquiry or not. 

I suggest that you always Pre-Qualify for an auto loan, Applying through the dealer can generate several inquiries at one time when they "Shop Your loan around" trying to find you (and them) the best deal. Plus having pre-qualified allows you the benifit of knowing in advance exactly what you can afford on your payment each month and how much you can spend on a vehicle.  It's like negotiating with cash.

Good luck

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sailingjbg

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  Perfect! Thanks 

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