Is it bad for your rating to get loan quotes?

Redeyes1984

I applied for a Santander loan for a few grand to cover the cost of a car last week. They example APR was 7.9% but when they sent me the official quote it was at 9.1% so I was just not going to sign it and get some more official quotes sent to me, however I'm worried about the affect of loads of loan quotes on my credit rating, do you guys know if it has a massive effect?

keith1950

Hi, one record of an application on your credit file won't be a problem but several within a short timescale could make them think you are desperate and make other lenders think you are being rejected.
If you get several quotes and then don't get a loan at present ,then, when no loan shows up on your credit file after a couple of months it will tend to indicate you were just looking.
You call them 'quotes' but they are in fact applications so will all show up , try another and if it also comes in at more than 7.9% then you probably going to have to settle for a higher rate.

KingElvis

Yes they will have a big effect on your rating and after just a few, you could find yourself no able to actually get a loan.

Lenders see many applications in a short time as the so called "desperation cycle"

BoroPhil

Nationwide do quotes without hitting your credit rating, but then I guess they have no obligation to actually give you the loan but it would give you an idea of what sort of apr to expect