Will 2 car loan applications hurt my score?

Alr1m

Hi everyone.

I have a question about applying for car loans and the impact multiple applications have on your credit score.

My 'score' is 999 on Experian, I have a long credit history, payments always on time, only 25% of my available credit in use and no bad entries on my report.

I have only one previous application for credit in the last year (Dec) when I applied for a car loan with M&S and got 3.5% but cancelled it within 14 days and paid everything back as the time wasn't right.

Now the time is right, so I applied with Sainsbury's this time at 3.4%, and although accepted their rate was not as advertised, but 5.7%
I can only assume that they are profiting from me, as I cannot explain not being one of the 51% on the representative rate otherwise.

Needless to say I am not happy with the offer and (aware that they price match) want to get another offer of 3.4% from my bank - as I know that they also offer that rate.

I believe that in the US, multiple applications specifically for a car loan or a mortgage within 30 days are not counted negatively due to the customer 'shopping around' for rates, so it only shows as 'one application' when searched but is that the same in the UK???

I intend to only apply once more, so it would be 3 in total over the last 3-4 months (two in under 30 days) with none previously in over 12 months.

Will my score reduce if a apply one more time to 'shop around"?

Any guidance would be gratefully received.
Thanks

[Deleted User]

Your score probably will reduce but as no one sees it but you, and it's a poor reflection of how lenders will view you, it's not a problem.

If you need to get a third quote, I would carry it out as quickly as you can, then select form the best you've been offered.

Alr1m

Thanks ZX81.

My worry isn't really about the credit score, more the chances of being offered the lowest rate on my next application.

I will only try one more time, and have some weeks to go before I need the money, so I'm really asking whether it is best to apply now, or wait another month? Or does it really matter at all in the grand scheme of things?

Doctor_Duke

It depends on the searches made. If they were full application searches it may impact temporarily your score but not necessarily your credit worthiness. Why don't you try some quotes that leave no impact, Lloyds, Halifax and TSB, Natwest and Nationwide to name just a few all will show you your personalised quotation including Apr. It only leaves a hard search on your file if you go on to a full application. They could also decline you at that stage but at least you will get a picture of your rate prior to a full application.