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How Will Multiple Inquiries for an Auto Loan Show On My Credit Report?

Editor’s Note: This question comes from Nick on Facebook, and we are answering it as part of our “Ask Susie Q&A” Series. If you have a question for us, ask us on Facebook or Twitter and we may pick yours to answer next.

“We purchased two new automobiles Mar 25. [Eight] inquiries were made to financial institutions and we chose two. Do the other six remain on our reports?”

First let’s start with some definitions. An inquiry is a notation on your credit report that shows when a creditor has pulled your credit report to grant credit. This is called a hard inquiry and it does slightly lower your credit scores.

When you check your credit report yourself, that is called a soft inquiry and it does not have any impact on your credit scores.

Back to Nick’s question. It’s a great idea to shop around for the best auto loan you can qualify for to find the lowest interest rate and best loan terms. But, this means numerous inquiries posted to your credit report.

Here’s the good news. Credit scores recognize rate shopping, and bundle together inquiries of the same type made within a certain period of time, typically two weeks, sometimes a little longer.

So Nick, here’s the rub: All eight inquiries will show on your credit report as a record of who accessed your credit report. But if you applied for those eight auto loans within a two-week period, it will only count as one inquiry when your credit score is calculated. This allows you to shop for the best rates and terms without hurting your credit scores.

The same principle applies when shopping for a mortgage loan, but not for credit cards or types of revolving credit.

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Of course, you can get more detailed information about how to monitor, protect and manage your credit at experian.com/education.

Have more questions about credit? Please, #AskSusie! Submit your questions (using the #AskSusie hashtag) through Facebook or Twitter, or email me directly at AskSusie@experian.com.


Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, or other company, and have not been reviewed, approved or otherwise endorsed by any of these entities. All information, including rates and fees, are accurate as of the date of publication.