Chosen by Asker

Your auto insurance cost will often depend in part upon your credit profile. A very few states do not allow this practice and a few more require the insurance company to explain how it impacts your rates. Unfortunately the relationship is not necessarily related to your numeric credit score. My credit score is over 750 but I still am being dinged about 10% on my auto insurance cost. My state does not require insurance carriers to disclose how your credit profile affects your rates, only that it does and by how much. I cannot get a straight answer from my insurance company as to how I could improve my profile to qualify for lower rates. If this situation pisses you off -- and it certainly does me -- contact your elected representatives and demand that they pass legislation to force insurance companies to disclose how your credit profile affects your rates and how you can improve it to lower your rates.

by Bash Limpbutt's Oozing Cyst©

3 weeks ago

Asker's Rating: 

Ok, you have several parts to you question... Getting a car loan will affect your credit, but having a car loan will not affect your insurance rate. Your insurance, whether the amount is high or low, has no bearing on your credit report. The insurance quote is based upon the type of car you get and it's safety features. For example, a 1965 Ford Mustang is going to be more expensive versus a 1985 Ford Pinto. Hope that makes sense...

by Missy Lou- 3 weeks ago

Paying a car loan on time will improve your credit as you will be demonstrating that you can pay a debt in a timely manner.

by MadMan- 3 weeks ago

No. As long as you pay your monthly repayment of your car loan in time.

by Eddy T- 3 weeks ago

while the inquiry will show up on your credit report right away, you new car loan will not show up for 2-6 weeks. It shouldn't even be factored in. You will probably be required to have your insurance for the new car in place before leaving the lot anyway. It will not be reported that quickly.

by timothy p- 3 weeks ago