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Do multiple car loan applications hurt your credit?
I want to get a car loan, but my friend told me that I should shop around with multiple lenders. I know that each lender does a hard inquiry on your credit. But do multiple car loan applications severely hurt your credit?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Shopping around for a
car loan
is an ingenious way to get the best rate! Multiple car loan applications will impact your credit score. However, all car loan applications and hard inquiries within 14 days are counted as just a single hard inquiry.So, if you can shop around and submit all of your loan applications within the two-week period, you should only see a single hard inquiry**. This should lower your credit score somewhere between 10 and 20 points, depending on your credit profile and situation.
But the only way to get the best rate is to shop around. As a result, the 10- to 20-point drop in your credit score is simply collateral damage. However, saving hundreds or thousands on your car loan is a better result, especially when you consider that your credit score will recover within a few months to a year.
If you want to save even more cash on top of your great car loan rate, make sure to shop around for car insurance with the Jerry app.
As a licensed broker,
Jerry
helps you find and compare quotes from over 50 top providers in minutes. When you find an excellent rate, Jerry can help you buy your new coverage! Average customers save an impressive $879 per year!View full answer
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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