Foster City, Calif. (GlobeNewswire) May 20, 2015 – For many consumers, Memorial Day weekend might involve a trip to the automall to check out holiday car sales. Buying a car is an important decision for one’s personal finances, yet less than 38 percent of Americans think that the process will improve their credit according to the latest survey from credit report site WisePiggy.com.
For many consumers, credit isn’t part of the planning process when buying an automobile, with just 42.74 percent of respondents that have purchased a car checking their credit score before purchase, and only 40.08 percent checking their full credit report.
“We were a bit surprised at these results,” said Loryll Nicolaisen, managing editor of WisePiggy.com. “With all the information out there about the importance of credit health, you’d think more Americans would be diving into their scores and reports before making any major purchase. Not knowing where you stand credit-wise before you get into the pressure cooker of a car dealership can cost you real money.”
One of the major factors affecting and potentially improving a credit score is the loan process. Here are the percentages of respondents that used each combination of cash/savings and an auto loan:
• Auto loan – 30.67 percent
• Cash/savings – 46.63 percent
• Combination of cash and loan – 22.7 percent
“It’s important for consumers to remember that shopping around for different financing deals shouldn’t hurt their credit, only help their wallets,” added Nicolaisen. “FICO, the major scoring outfit, ignores auto loan inquiries made in the 30 days prior to scoring, so, if you find a loan within 30 days, the inquiries won't affect your score.”
Getting an affordable loan can boost credit health.
• 80.57 percent of those that have purchased a car say they have never missed a payment, which is critical for health credit.
• 66.36 percent of Americans that have purchased say that they have financed some portion of their purchase, with more than one in 10 financing the entire purchase.
Are younger buyers wiser?
• Younger buyers were more likely to be proactive before a car purchase, with almost half of respondents in the 25-34 and 35-44 age groups checking their credit score before purchase, compared with less than one in five of those 55 and older.
For more details on the survey, please see the full article on WisePiggy.com: https://www.wisepiggy.com/credit_tutorial/credit_score/does-buying-car-affect-credit.html
WisePiggy.com offers easy, fast and free solutions to consumers looking to track their credit score and make the most of their money. WisePiggy.com offers consumers free access to their TransUnion credit score. The site also features money management tips and tools, including the unique WisePiggy Report Card, a one-of-a-kind tool to guide consumers to a better credit score.