Car Loans 15-45 day rule

Forum|Forum|6 years ago
September 4, 2019
2 replies
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Hello.

I want to start shopping around for car loans. Can someone explain in more detail the 15-45 day rule when the effects on your credit score may be lumped into one? Also why is it such a range? Should I play it safe and apply for a loan only 2 weeks before I plan to buy a car? Or do I truly have 45 days?

Thanks.

Car Loans

Anonymous_

Employee

Apparently, the time period may varies from one credit scoring system to another but is in the range of 14 to 45 days. Regardless, probably the best approach would be to stick within that two week time frame.

See https://www.myfico.com/credit-education/credit-reports/credit-checks-and-inquiries

Anonymous

while the following is about mortgage it would be the same for a car loan

Within a 45-day window, multiple credit checks from mortgage lenders are recorded on your credit report as a single inquiry. This is because other creditors realize that you are only going to buy one home. You can shop around and get multiple preapprovals and official Loan Estimates. The impact on your credit is the same no matter how many lenders you consult, as long as the last credit check is within 45 days of the first credit check. Even if a lender needs to check your credit after the 45-day window is over, shopping around is usually still worth it. The impact of an additional inquiry is small, while shopping around for the best deal can save you a lot of money in the long run. Note: the 45-day rule applies only to credit checks from mortgage lenders or brokers' credit card and other inquiries are processed separately.