How Does a Loan Affect Your Credit Score?

You just completed the paperwork on a new loan. Because of your excellent credit score, you got an outstanding rate on the loan. But 30 days later you pull your credit report and find out that your credit score dropped by 40 points. Everything else on your report is consistent with what has been there before, the only difference is the new loan.

Did that cause your credit score to drop? And if so, why?

Unproven Payment History

If you are not fully familiar with the credit universe it can be a sh...