Applying for more than one car loan at once?

Shopping around for a car loan is always a good idea. However, this does not extend to actually applying for every loan offer you see. Every time you apply for a car loan that application is listed on your credit file and will affect your ability to be approved for credit in the future.

This guide will take you through when submitting your details does and does not mean you're applying for car finance and how to "shop around" without it affecting your credit score.

When will shopping around for a car loan affect my credit rating?

Technically, only submitting your personal and financial details as part of a loan application will result in a mark on your credit file. The credit provider will need details such as your name and driver's licence number to be able to bring up your credit file and then be able to list the inquiry.

However, it may not be obvious that an inquiry will be listed. For instance, the credit provider may advertise it as a "quote" or an "initial consultation" but even if you don't follow through with the loan, you could see it listed in your file as an inquiry. If you have multiple inquiries listed on your file in a short space of time this will affect your credit score.

How many inquiries is too many?

There is no one number that is "too many", but generally, one credit inquiry every three to six months is not considered to be risky behaviour by lenders and shouldn't affect your credit score too much.

What happens if I don't get approved when I apply for a car loan?

If you do your due diligence and shop around for the best rates, fees and features without applying but don't get approved, you may be wondering what to do now. If you don't need to purchase the car straight away you might consider waiting three months to apply with another lender. Even waiting a couple of weeks may make you look like less of a risk to a lender.

If you are in a position where you do need to make the car purchase quickly, consider calling the lender to explain your situation and finding out whether or not your recent rejection will be an issue. You can also consider finding finance with a car loan broker.

How do I check my credit file and credit score?

You can check your credit score for free on finder. You can also order your credit file for free every 12 months or if you've been rejected for credit in the past 90 days. Your free credit file will be delivered to you within 10 days. However, if you want it delivered sooner or aren't eligible for a free credit file, you can pay a fee for it as well.

Comparing car loans before applying

Applying for a car loan can be one of life's big decisions. You'll be paying off a depreciating asset for a period of time, so it is always important to compare your options. Use the comparison table below to get an idea of the interest rates, fees and charges, and loan terms before applying.

Loans.com.au - New and Dealer Used Car Loan

Loans.com.au - New and Dealer Used Car Loan

From

4.67 % p.a.

fixed rate

From

5.22 % p.a.

comparison rate

• Early payout available
• No monthly ongoing fee
• Borrow up to $100,000

100% confidential application

Loans.com.au - New and Dealer Used Car Loan

A competitive fixed rate to purchase a car up to four years old. Option to add on-road costs into loan amount.

• Interest rate: 4.67% p.a.
• Comparison rate: 5.22% p.a.
• Interest rate type: Fixed
• Application fee: $400
• Minimum loan amount: $5,000
• Maximum loan amount: $100,000

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Loan term

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Name	Product	Interest Rate (p.a.)	Comparison Rate (p.a.)	Min Loan Amount	Loan Term	Application Fee	Monthly Service Fee	Monthly Repayment
Loans.com.au - New and Dealer Used Car Loan		From 4.67% (fixed)	5.22%	$5,000	3 to 5 years	$400	$0		You'll receive a fixed rate from 4.67% p.a. based on your risk profile Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Settle the loan before 30 November 2021 and enter the draw to win a $1,000 fuel gift voucher. T&Cs apply.	Go to site More Info	Compare	loading Fetching your data...
Latitude Personal Loan (Secured)		From 5.99% (fixed)	7.26%	$3,000	1 to 7 years	Loans under $5000 - $140	$13		You'll receive a fixed rate between 5.99% p.a. and 21.99% p.a. based on your risk profile Lock in a competitive fixed rate when you offer security. Loan can be used for any purpose and repayments are flexible. You can check your interest rate before applying with no impact to your credit score.	Go to site More Info	Compare	loading Fetching your data...
Plenti Car Loan		From 4.89% (fixed)	5.44%	$2,000	3 to 7 years	from $249 to $799	$0		You'll receive a fixed rate from 4.89% p.a. Borrow up to $100,000 with a Plenti Car Loan and benefit from no early repayment or exit fees.	Go to site More Info	Compare	loading Fetching your data...
IMB New Car Loan		4.99% (fixed)	5.34%	$2,000	1 to 7 years	$275.12 ($250 Application fee + $25.12 PPS registration fee)	$0		You'll receive a fixed rate of 4.99% p.a. A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one that's up to two years old.	Go to site More Info	Compare	loading Fetching your data...
Credit Concierge Car Loan		From 3.99% (fixed)	5.08%	$10,000	1 to 7 years	$350	$8.50		You'll receive a fixed rate of 3.99% p.a. with a comparison rate of 5.08% p.a. Get access to over 20 providers to fund a new or used car.	Go to site More Info	Compare	loading Fetching your data...
SocietyOne Car Loan		From 6.99% (fixed)	6.99%	$5,000	2 to 5 years	from 0% to 5% of the total loan amount	$0		You'll receive a fixed rate between 6.99% p.a. and 20.49% p.a. based on your risk profile A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.	Go to site More Info	Compare	loading Fetching your data...
Stratton Finance New Car Loan		From 4.05% (fixed)	5.63%	$10,000	3 to 7 years	$700	$8.25		You'll receive a fixed rate from 4.05% p.a. depending on the lender you are approved with Apply for up to $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.	Go to site More Info	Compare	loading Fetching your data...
NAB Personal Loan Unsecured Fixed		From 9.99% (fixed)	10.88%	$5,000	1 to 7 years	$150	$10		You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% (13.56% comparison rate) or less. See Comparison rate warning in (i) above.	Go to site More Info	Compare	loading Fetching your data...
NRMA New Car Loan		From 4.99% (fixed)	5.69%	$5,000	1 to 7 years	$499	$0		You'll receive a fixed rate from 4.99% p. a. Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.	Go to site More Info	Compare	loading Fetching your data...
Driva Car Loan		From 3.95% (fixed)	5.1%	$2,000	1 to 7 years	$295 (Varies by lender, starting from $295)	$10		You'll receive a fixed rate from 3.95% p.a. Borrow up to $250,000 with loan terms from 1 to 7 years. Get access to a range of lenders.	Go to site More Info	Compare	loading Fetching your data...
NRMA Used Car Loan		From 6.49% (fixed)	7.19%	$5,000	1 to 7 years	$499	$0		You'll receive a fixed rate from 6.49% p.a. Finance a used car with NRMA and benefit from a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.	Go to site More Info	Compare	loading Fetching your data...
Symple Loans Personal Loan		From 5.75% (variable)	6.47%	$5,000	1 to 7 years	from 0% to 5% of the loan amount	$10		You'll receive a personalised interest rate from 5.75% p.a. to 25.99% p.a. based on your risk profile Borrow up to $50,000 to pay for what you need.	Go to site More Info	Compare	loading Fetching your data...
Macquarie Car Loan (For		From 7.17% (variable)	8.47%	$10,000	1 year to 35 months	$520 + $6 PPSR	$8.25		You'll receive a fixed rate from 7.17% p.a. based on your risk profile. Get funding for a new or used car and access to Macquarie’s car-buying service. Click the information symbol for important disclaimers.	More Info	Compare	loading Fetching your data...
Macquarie Car Loan (For > 60 months)		7.42% (variable)	8.72%	$10,000	5 to 7 years	$520 + $6 PPSR	$8.25		You'll receive a fixed rate from 7.42% p.a. based on your risk profile. Get funding for a new or used car and access to Macquarie’s car-buying service. Click the information symbol for important disclaimers.	More Info	Compare	loading Fetching your data...

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Can I apply for a car loan if I have a bad credit history?

If you have bad credit you can compare lenders that specifically work with bad credit applicants. Depending on how bad your credit history is, it may also be worth getting in touch with your current bank to see if it would be willing to consider your application. Make sure to contact your bank before submitting an application.

Before you begin your search, build up a small deposit and examine your budget to decide how much of a car loan monthly repayment you can afford. Then begin to research and compare the different lenders who specialise in high-risk car loans before making your final decision.

Don’t make further negative marks on your credit report by applying to more than one. Most of these types of lenders will analyse your credit rating without it showing up on your report to ensure that you will qualify before they process your application.

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