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Does applying for loans hurt your credit score?

I went from a "Good " credit score to just above a "Poor" one after applying for two different loans that I was recommended by Experian giving what my score was at.

I was refused both, now my credit rating is so low I'm scared to apply for another but really need a new car for my job. I have a full time job and virtually no debt. As i have seen applying for loans can hurt your credit score? Do you have any Ideas?

Asked by Graeme R

Hi Graeme, thank you for your question.

As you have rightly seen, applying for too many loans can have a negative impact on your credit score. However, here at CarFinance 247 we have many lenders on our panel that help people with good, fair and bad credit and those with little credit history too.

I wouldn't be overly concerned that your score has dropped significantly just because you have applied for 2 loans. Where did you apply? Were the lenders high street names? If so, we have many lenders to choose from and I'm reasonably confident we can help you get a car loan. As long as you're employed, have some form of current clean credit and are on the electoral roll, we should have a fair chance.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Tim Carpenter
Answered by Tim Carpenter Car Finance Expert Edited on

Liked by 8 People

5 Years
Total cost of credit £ XXX.XX
Total repayment £ XX,XX.XX
48 monthly
payments of
£ 245 98

Rates from 6.9% APR: the exact rate you will be offered will be based on your circumstances

Representative example: borrowing £6,500 over 5 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £188.74 per month, with a total cost of credit of £4,824.37 and a total amount payable of £11,324.37

Rates may differ as they are dependent on individual circumstances. Subject to status.

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