Credit Checks for Auto Loans Are Not A Bad Thing

When applying for an auto loan, having your credit checked does not hurt your credit.

It comes up again and again from auto loan applicants that they are concerned about having their credit checked. Why the concern? Because it’s been promoted for years that shopping for auto financing and multiple credit checks for auto loans will to hurt your credit. That’s simply not true! There is an old saying – “smart people shop for the best rates and terms.” Shopping for rates is a good thing.

Auto finance shoppers are saving on average, an estimated $1757 in finance charges by getting a direct loan through and having a choice on terms, payments and APR. Mark-ups on financing are common at dealerships and consumers are starting to understand that finding out what they can afford and what rates they are eligible for before they go to the dealership saves them time and keeps them out of having to wait 2 or 3 hours in the “finance penalty box”. Auto Credit Reports are necessary to get the rates that are best for you without any markups. Walking into a dealership with your financing already established is a powerful feeling – now work on getting the best price for your trade-in and auto purchase.