Will applying for multiple car loans hurt my credit score?

I'm shopping around for a car loan lender, but I don't want to damage my credit score. Can I still apply to multiple lenders?

Answer
Yes, you can (and should) apply to multiple lenders! Shopping around for a car loan is the only way to ensure you get the best rate possible. Fortunately, there will only be one hard inquiry on your credit if you shop around within a 14-day window.
Credit bureaus consider a 14-day window a reasonable time frame to search for a lender. You could apply for 100 loans during these two weeks, but you’ll only get one hard inquiry on your report.
Of course, one hard inquiry may drop your score 5-10 points, but if you apply for loans over more than 14 days, you’ll get an additional 5-to-10 point hit.
Once you do get approval, you generally have 60 to 90 days to sign, so don’t rush into buying a car. Do your research of specific makes and models and consider test driving a few.
If you’re looking to save money as you take out a car loan, make sure you’re not overpaying for your car insurance. Use Jerry to compare quotes from up to 50 of the nation’s top providers and find coverage you can trust for less.
Eric Schad
Answered on Oct 28, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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