 TITLE: Should I Buy a New Car or a Used Car? CONTENT: How Does Buying a Car Affect Your Credit Score?\n-----------------------------------------------\nIf you're planning on buying your next car with cash, the transaction won't impact your credit score at all (unless that cash comes from a loan). If you're financing a new or used car with an auto loan, it can affect your credit in a few ways.\nFor starters, when you apply for an auto loan, the hard inquiry lenders make on your credit reports has the potential to decrease your credit scores temporarily. This impact is typically small and short-lived, and shouldn't be a big concern for most borrowers. If you plan to apply for multiple auto loans in search of the best rate, submitting applications over a period of less than two weeks will minimize the score impact.\nAdding more debt to your plate can also impact your credit, especially if you didn't have a similar amount of debt on your previous vehicle. If you make your payments on time, though, a car loan can help improve your credit over time.\nBut if you miss a payment by 30 days or more or default on the loan, it could have a drastic negative impact on your credit score. As such, it's crucial that you buy a car that you know you can afford. If you're struggling to keep up with payments, contact your lender to discuss your options before you miss a payment. END