Will BMW Financing Hurt Your Credit?

Financing a vehicle is a significant decision that could impact your credit score. At BMW of Sherman Oaks, we’re here to help with your BMW financing questions. You might worry about financing affecting your credit score, so let’s discuss whether auto financing hurts your credit.

Does BMW Financing Hurt My Credit Score?

Before you sign a BMW financing offer, the financial institution must consult your credit report to check for good financial standing. Because of this hard pull, you may notice a small dent in your credit score as credit bureaus note that you’re shopping for loans.

This reduction in credit score is small and generally temporary. It will bounce back as long as you remain in good financial standing.

How Do I Improve My Credit Score?

You might be worried about BMW financing affecting your credit score, but there are ways to improve your credit after signing an offer. The best way to improve your score is to make regular and on-time payments on your loan. This tells the credit bureau that you’re responsible for your new loan, which boosts your score.

The one-time hit before signing might temporarily lower your score, but regular payments (to both your vehicle loan and other financial obligations) will make up for the difference. And the small reduction you take in credit score will go away eventually, so there’s no chance of a permanent credit stain so long as you make timely payments.

Find BMW Financing Offers at BMW of Sherman Oaks

If you’re ready to commit to an auto financing offer, we’re ready to help you. Visit BMW of Sherman Oaks today to shop for BMW financing options or find a new BMW model for you!