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Question By
DuelleMarley

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If I apply for a car loan with two different lenders, will that lower my credit score?

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Best Response Chosen by   Profile Image DuelleMarley
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Helpful to 20 out of 25 people

When you apply for a car loan, the lender will do a hard inquiry on your credit report, meaning they pull your credit report to check your history and credit score to determine approval for your loan application. Hard inquiries show up on your credit report for two years.

Credit inquiries are one of the five key components that affect your credit score and every hard inquiry will slightly lower your credit score. A lender may perceive a consumer who has had too many credit inquiries as desperate for credit or as a potential credit risk. So be mindful of how many different lenders you go to apply for an auto loan because it can add up to bigger drop on your credit score than expected. Check out the graph of the distribution of credit score to number of credit inquiries from the Credit Karma community for a sense of how many hard inquiries can impact your credit score.

You can check how many inquiries you have at CK, just visit:

https://www.creditkarma.com/report/inquiries

By the way, checking your credit score through Credit Karma is a soft inquiry, not a hard inquiry, and will not lower your credit score.

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I applied for car loan and shop with 3 dealers and 3 banks( Done within 30 days) but reflected as 6 new hard inquiries. It should be one inquiry only as you pointed out. What should I do?

The inquiries will count as one when calculating your credit score. But the 6 inquiries are accurate if you applied at all 6.

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Reply by
Cland1236

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Helpful to 3 out of 3 people

Two years ago I refinanced my mortgage. I had 5 inquires from my looking. I had always been told they would count as ONE since they were all mortgage related and withing 30 days or less. THAT DID NOT HAPPEN. I was hit on all 3 bureaus just as if I had applied for 5 separate loans. My score has just now recovered and in December the last one will fall off.

I wish it were the way you say CK, but realty is they all effect the score, regardless of what they tell you - at least they did mine.

A few things to note, the inquiries have to happen within a specific time frame usually 30-90 days. Secondly, the inquiries will all appear on your report. However, they will only be counted as one if they are within the right time frame. Regardless all will appear on your credit report.

Reply by
CK Moderator

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I am looking for a loan for $2000.00. I got scammed in 2007 for $1800 and am still in the hole. I just need this boost to get back on track. I had a bankruptsy in Feb 2009 and now all other debt is coming off and and can pay off the rest. Any suggestions.

Reply by
kemper60

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12 People Helped
Helpful to 2 out of 5 people

I would say your not going to be able to get a loan...of any kind...No Bank will take a chance on you!!

Reply by
shawnj1234

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2 People Helped

No BANK will take the risk for 2 years! However if you are in a bind and are williing to pay the price a finance company will!!! there are several that charge an outragious fee and interest but it will help you get back on track.

Reply by
robynh66

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Helpful to 2 out of 2 people

or try a credit union. mine will do a secured loan 18 months after discharge of a banko.

Reply by
SLAMc

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0 People Helped

Prosper offers loans ranging from $2K to $35K and does a soft inquiry to get your rates so it doesn't negatively impact your credit to apply. Even if you are denied credit for whatever reason, your credit score won't decrease from applying. They have an A+ rating with the BBB and are recommended by CreditKarma.

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