Buy a Car

Car lenders will request your credit score from a credit score company as well as a credit report. Once the lender or leaser decides you are creditworthy, he or she will present you with an auto loan that includes a monthly payment, an interest rate, and a term. You will be responsible for paying the auto loan back with interest during the loan term. At first, your credit score will decrease a few points as dealers and lenders take a look at your credit score/report to assess your creditworthiness. After 6 months, these inquiries will be removed from your credit report, and if you continue to make payments on your car loan, your credit score will soar. If you aren’t making payments on time, unfortunately, your credit score will plummet.

Buy a Home

Mortgage lenders will inquire about your credit score and report to check your credit history and deem you creditworthy or risky. They pay close attention to your available credit and if you are paying on time. If they decide to give you the loan, it is in your hands to make a judgment call to whether or not you will be able to pay back the lender or have enough for a down payment (check your savings) and to pay for closing fees. Also, a mortgage loan is not the only payment you will need to make, you most also make payments for mortgage insurance, home insurance, homeowners’ association fees, etc. Your credit score will slightly decrease with the lender’s inquiry into your credit report. Over time, if you pay the loan and bills on time, your credit score will increase and be as strong as ever. If you choose to not make payments, your credit score will fall.

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