 TITLE: How to Get Your Credit Ready to Buy a Car CONTENT: 4\\. Only Apply for Credit if You Really Need To\n-----------------------------------------------\nWhen you apply for credit, it can result in a hard inquiry, which can temporarily lower your credit score. The impact of a single hard inquiry on your credit score is usually minimal and typically lasts just a few months. However, if your credit report shows several hard inquiries within a short time, you may appear to be more of a credit risk.\nHow can you shop around for an auto loan without racking up too many hard inquiries? Credit scoring models know people applying for loans want to compare rates from a variety of lenders. If you submit multiple applications for the same type of loan within a certain window of time, credit scoring models typically treat these as one hard inquiry. The application window varies by the scoring company: VantageScore® uses a 14-day period, while FICO will group similar applications made in a 45-day period.\nYou can compare loan offers without generating any hard inquiries by getting preapproved for an auto loan. When a company checks your credit to preapprove you, it's generally considered a soft inquiry, so it won't show up on your credit report.\nKeep in mind that preapproval is only a conditional loan offer. You'll still need to get final approval from the lender. However, preapproval can provide a clear idea of how much car you can afford and how much the loan will cost you. It can also give you more negotiating power at the dealership. END