Does shopping around for a car affect your credit score if its done in the same day?
My husband and I are in the market for a vehicle and I was told if your shopping is done within seven days it wont affect your score. In other words if you visit for example 3 different car dealerships and all three you submit applications to that as long as you settle for a deal within a week that it wont effect your current credit score. Or something to that effect. Appreciate any feedback on this.
Multiple inquires for the same purpose within the same time frame (30 days) only count as one inquiry for credit score purposes. This applies to car loans, mortgages and student loans.
Not sure about affecting the credit score part, but 1 thing is for sure: if you apply to too many places for credit, they do see that as being negative because it looks like you’re trying “desperately” to obtain credit (makes it look like you’re in some kind of debt trouble) and so you might be offered a higher rate or lower credit limit.
Oh plus i’ve always read that you shouldn’t apply for car loans at the actual dealership (which is what it sounds like you’re doing). They might scam you into signing for a higher interest rate! Not sure if these tactics are still practiced nowadays, but you can’t be too careful these days!
Go to a bank, I went to Capital One Auto Finance last year and got a rate of 4.97%- and they are great! You’ll know how much $$ you’ve been approved for and what rate they’ll give you.
It will affect your score, but if done in say a short time frame, it will not look as bad.
You should try to get financing on your own, instead of throwing yourselves at the mercy of a dealer to find you financing. It puts you in a detrimental place when trying to negotiate a deal.
You could end up with an interest rate higher than you want, and even hidden charges you don’t need to pay for.
Dealerships are notorious for letting you drive the car away and then a week or two later telling you you need to come in and sign different loan documents.
Just get your own financing.
The best way to prevent multiple dealerships from pulling your credit report, is to just shop at your credit union. Get qualified with them, they’ll let you know what amount of money they will give you to shop with and you will get a much better rate, especially now. The rebates will still apply to your puchase with what ever dealership you purchase from. The dealerships offer bogus rates to bait you into the dealership, then after you spend numerous hours with the financial person, they’ll find a way to stick you with an outrageous interest rate. If you are not a member of a credit union, contact Associated Credit Union or just do a search for credit unions in your area.