When you sign up for a loan of any kind, your credit score may initially drop. That’s because the lenders will check your credit history to see if you’re eligible for a loan and what terms and interest rates are available. The drop will be insignificant.

If you’ve been approved for a loan, you’ll receive your vehicle and begin paying each month for your car. Keeping up with payments will raise your score and continue to increase with a solid record of payments. If you’re late or miss payments, your credit score will drop. Make sure that you contact your lender if you lose your job or cannot pay off the loan.

If you learn that your credit score is less-than-perfect or have no credit history because you’re young or never signed up for a loan or credit card, you can improve and boost your credit. A credit score can fluctuate with the practices that you maintain.

Before you do anything, order a copy of your credit history from a reputable credit reporting agency. Your credit history can tell you what may be working and what may not. That way, you can strive to improve your credit and decide what steps you need to take.

If you tend to miss payments or send them in late, you may want to reverse that practice, especially since you may incur late fees. You should also pay at least the minimum on credit cards, for instance, because you could accrue higher interest payments.

You may think that getting a credit card for every store you frequent may be a great idea. Think again. While you may wish to get an all-purpose card and a few for your favorite stores, it’s best to avoid applying for multiple cards. Every inquiry you make for a credit or store card could deduct points from your score.