When you apply for a car loan, the lender will conduct a hard credit inquiry, also known as a hard pull. This inquiry is a standard procedure in loan applications. While a single hard inquiry has minimal impact on your credit score, multiple inquiries within a short period can raise concerns from lenders. It may indicate that you're seeking additional credit, potentially making you appear riskier to lenders.

Successfully obtaining a car loan adds a new credit account to your credit history. This can have both positive and negative implications. On one hand, it diversifies your credit mix, which can look good to lenders. On the other hand, a new account may temporarily lower the average age of your credit history, potentially impacting your credit score. However, this is often short-lived and responsible management of the new account can help improve your creditworthiness over time.

Consistently making on-time payments on your car loan is crucial for maintaining or improving your credit score. Timely payments demonstrate responsible financial behaviour and can positively impact your credit history.

Your payment history, including any late or missed payments on your car loan, significantly impacts your credit score. It's vital that you meet your payment obligations to avoid negative marks on your credit report.