Does getting a car loan affect my credit score?

Taking out a car loan affects your credit score if a lender does a hard check of your credit. Your credit score will slightly decrease in this case, but it can recover over time. We recommend that you avoid applying for a loan that requires lenders to perform a hard check on your credit for a short period.

In addition, a car loan can affect your score if you do not keep up with payments. In this case, your score will decrease. However, if you make your payments regularly as per the agreed terms of your loan, you could boost your credit score. 

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