Car loan won’t damage high credit score

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Dear Terry,
I was thinking about buying a new car, but I am worried about the extra $12,000 that will be added to my debt. How will the loan affect my credit score? My score is pretty close to the 800 range. Will the extra debt drop my score a lot?


Dear Chris,
Your credit score is derived from a variety of factors, including but not limited to total debt. I assume you have a long history of wisely using credit, since an 800 score would put you near the top of the FICO scale. In such a case, taking on a $12,000 car loan shouldn’t significantly affect your score, if it lowers it at all.

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