How to Keep Your Car Purchase From Derailing Your Home Purchase

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If you are in the market to purchase a home but looking to purchase a car as well, here are a few thing to keep in mind so that your car purchase does not lower your credit score and derail the purchase of your new home.

  • Response may vary but a single car loan application could potentially lower your scores up to 30 points or more.
  • One car loan application can trigger as much as 25 or more hard inquires on your credit, depending on how many third-party-lenders the dealership work with.
  • Car dealership does not run credit multiple times, however within the application you completed, you gave the dealership permission to submit your application to all the lenders they work with and each of those lenders will pull their own credit report.
  • Even if you have the funds to purchase the vehicle out right, you may still be required to complete a credit application and have your credit run. Why? because dealerships have to follow protocols laid out by the federal government to confirm the identity of all buyers who pay cash for a vehicle.
  • You can always ask the dealership to run your credit only once to avoid multiple hit.
  • If a car dealership run your credit without your permission, you can file a complaint with the Consumer Financial Protection Bureau.

Doing more because I care more. Until next time...Diana

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Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the HRIS.