When shopping for a car, it is common for auto dealers to submit your information to multiple lenders in an effort to find the lowest interest rate and most favorable loan terms. This practice allows you to benefit from lenders competing for your business. The same practice is used for mortgage lending. Each time your credit report is reviewed by a different lender, an inquiry will appear showing who accessed the report and for what purpose.

Lenders know that multiple applications for a car loan within a short period of time indicate you are shopping for the best terms, not buying multiple cars. Scoring systems have been designed to reflect that reality.

While inquiries remain part of your credit report for two years, the longer ago they occurred, the less they will affect you. If your credit history is good overall, it’s unlikely that your application would be declined based on inquiries alone.