For those with spotless credit, shopping around for an auto loan isn’t that big of a deal. But when you have credit that is less than perfect or in recovery, you should be more concerned about submitting a bunch of applications.
When you submit a loan application, the dealership Finance and Insurance, or F&I, department will check your credit. This is known as a hard credit inquiry. When you are looking for a car, the credit agencies know that you will want to shop around, so any auto loan inquiries that take place within a 14 to 45 day window will only count as one, and typically won't negatively affect your score.
When Multiple Inquiries Hurt Your Credit
If your credit isn't that great, you could find yourself in a situation where the shopping and buying process could go beyond that 14-45 day period. The additional applications past that point will just send your score further into the red, making it even more difficult for you if any of the dealers you applied with cannot approve you.
Another thing to look out for when you are seeking auto financing is to hold off applying for any other type of credit. If you haven’t applied for anything else lately, that is great - keep it that way. If you are constantly applying for other lines of credit, the 14/45 day rule doesn't apply, and auto lenders will see your repeated attempts for credit as a sign of financial trouble.
When your credit is already damaged, the best thing to do is work with the right dealer the first time. Of course, finding car dealers that work with bad credit on your own might seem impossible, and could lead to you signing an unsatisfactory auto loan agreement.
Get on the Road Fast
If you are suffering from bad credit or even less than perfect credit, let our team here at Auto Credit Express find the dealership so you don't have to. We have a nationwide network of dealers who have the expertise you need to ensure that you not only get the best rates you can qualify for, but also a quality new or used vehicle that will last you for years to come.
Get started today by completing the secure and fast online application. Not only is it free, it is at no obligation to you and we don’t run your credit. After you complete the form, we will contact you to arrange a meeting time with the dealer. Don't waste any more time and get what you need today.