I’m considering applying for an auto loan and I’ve heard varying opinions about how obtaining multiple loan quotes might affect my credit score. Specifically, I want to know if requesting several quotes in a short period will lead to multiple hard inquiries on my credit report, and if those inquiries could have a negative impact on my credit score.
When you’re shopping around for an auto loan, it’s smart to gather multiple quotes to compare rates and terms. Fortunately, credit scoring models like FICO treat multiple auto loan inquiries within a short timeframe—typically 14 to 45 days—as a single inquiry. This means your score won’t get dinged with each lender check if you’re efficiently shopping. Just ensure all inquiries are for the same type of loan (auto). Transparency with lenders and timing your applications closely is crucial to avoid unnecessary hits to your score.