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Will new personal loan affect car loan applicatoin?


Will new personal loan affect car loan applicatoin?

I was going to buy a car with a personal loan. Reason I did this was because I was originally planning on only getting liability insurnace for the car since  full coverage was way too expensive. I'm a newish driver (2+ years) and was in an accident last year. Every full coverage quote I could find for the car I want was about $600. That's like double the car payment each month. I accepted the personal loan 9.9% interet for $14,500 on thursday. Today I saw a storefront for an insurnace broker, and decided to walk in. She got me a full coverage quote for $200 a month. Now I could get a car loan without bankrupcting myself with full coverage. I know I could have gotten at least a 4% car loan before because I was pre approved for that much at capital one. Fico Scores were 733 for exp, 740 for trans, and 750 equifax before hard inquiry for personal loan.  


The personal loan is not on my credit report yet. The funds haven't even gone to my bank account yet. But the hard inquries for trans and equifax do show up.  Will the personal loan hard inquiries mess up my changes of getting a car loan with a low rate? If I get the car loan, I plan on paying off the loan in full completely right away. 

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Valued Contributor

Re: Will new personal loan affect car loan applicatoin?

My guess is you will be fine until the loan reports, after that depending on your DTI you may have a challange getting financing.  I would make your move quickly and then cancel that personal loan.  



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