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In ON, what should I know about credit score impact of auto loans for car loans?
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In ON, what should I know about credit score impact of auto loans for car loans?

In Ontario, applying for an auto loan typically involves a 'hard inquiry' on your credit report, which can cause a minor, temporary dip in your credit score. This initial impact is also influenced by the opening of a new credit account, slightly altering your credit mix and average account age. However, the long-term effect is overwhelmingly positive, provided you consistently make your payments on time. Canadian credit bureaus, such as Equifax and TransUnion, track this payment history diligently, and responsible repayment demonstrates your creditworthiness, steadily rebuilding and improving your score over time. For consumers in 2025, a strong credit score is paramount as it directly influences the interest rates and terms you qualify for, potentially saving you thousands over the life of the loan. Understanding this dynamic is crucial because a healthy credit score not only secures better financing but also underpins your overall financial health and future borrowing capacity.

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