Applying for car finance can either be exciting or daunting, depending on how you look at it. If you are in the process of looking for your next car, you may be wondering how many times you can apply for car finance…

You may be looking for the best deal out there or you may have been refused by a particular lender. Whatever your reason for creating multiple applications, you should do so with caution. Applying for finance multiple times in a condensed time period impacts your credit score negatively. The searches show up on your record and it looks as though you are frantically searching for money to borrow, even if this isn’t the actual case. 

This is why it is always a good idea to have a soft search first, to give you an idea of what the numbers could look like before you commit to a hard search. 

It is recommended that you do not have more than three to five hard searches against your name within a 12 month window, as this could significantly impact your credit rating and your chances of actually being approved for car finance, as well as other things.

While it is tempting to hunt around for the best deal, it is much more beneficial to do your research and have soft searches to determine the kind of numbers you will be looking at. Nothing is a sure thing and numbers may change during a hard search but at least you get the chance to investigate without being blacklisted.

If you would like to know more about soft searches, hard searches and even car finance, the team at LMC will be able to help. We have dedicated finance experts in house who can talk you through the options and the process to hopefully find a deal that suits your lifestyle and budget.