Does Mercedes-Benz Financing Hurt Your Credit?

Odds are better than even that you’ve spent no small amount of time building and protecting your credit. As such, you may wonder how Mercedes-Benz financing will impact that all-important three-digit number. Keyes European looks closer at a loan or lease’s short-term impact and long-term benefits.

Financing and Your Credit Score

To understand what happens to your credit score and why, it helps to know what happens when you submit a financing form via our website or at a dealership. Applying for a loan or lease on a new Mercedes-Benz car involves what’s known as a “hard pull,” a credit check that indicates that you’re applying for financing. Since you’re opening a new line of credit, your credit score will drop by a few points temporarily.

Can You Minimize the Drop?

The next logical question is whether you can avoid even that tiny hit (or a series of small hits if you’re shopping multiple dealerships). You can.

The first solution is pre-qualifying for financing rather than applying. The difference isn’t just semantic since pre-qualification relies on a soft pull that doesn’t impact your credit.

If you still want to submit multiple applications for some reason, you cannot avoid the credit hit altogether, but you can mitigate it. Submitting applications within a tight timeframe – a fourteen-day window – lets them count as a single inquiry.

Long-Term Benefits of an Auto Loan or Lease

As you compare options, don’t lose sight of the big picture. A timely payment history will protect a good credit score and improve one that is subpar. Furthermore, if you rent rather than own your home, an auto loan diversifies your credit mix, which makes you a more credible borrower in lenders’ eyes.

Visit Keyes European for Mercedes-Benz Financing Support

Whether you’re financing your first Mercedes-Benz vehicle or your fifth, Keyes European is here to help. We make it easy to get into the luxury model you want while safeguarding your credit and budget. Visit our Mercedes-Benz dealership in Van Nuys today for answers or to begin the process.