Does Applying for Car Finance Affect Your Credit Score?

Does applying for car finance affect your credit score? It can. A lender’s credit enquiry may appear on your credit report, and several applications in a short period can lower your score. That does not mean every conversation about finance creates an enquiry.

This guide is for buyers in Perth and across Australia who want to understand the process before choosing a new or used vehicle.

An enquiry is not always a loan application

Asking about loan terms or requesting a repayment illustration is different from making a formal application. However, an online form labelled “quote” or “pre-approval” does not automatically mean no credit check will occur. Ask what happens next and read the privacy and credit-check disclosures before submitting your details.

What gets recorded?

A credit enquiry can show that a credit provider accessed your report in connection with an application, together with details such as the credit type and amount sought. Under Australia’s credit-reporting rules, credit enquiries remain on your report for five years.

A recorded enquiry is not the same as a missed payment or default. Lenders consider different information when assessing an application, and there is no universal number of points that every car-loan enquiry removes from a credit score.

Be careful with multiple applications

MoneySmart warns that too many applications in a short time can lower your credit score. Before applying again after a rejection, establish why it happened and whether the next application addresses the issue.

For example, sending the same request to several lenders without first checking their requirements may create unnecessary applications. Discussing your income, existing commitments, vehicle and deposit first can help you understand which options may be relevant. It does not guarantee approval.

Four questions to ask before proceeding

• Is this an estimate, an initial assessment or a formal credit application?
• Will a credit enquiry be recorded at this stage?
• Which lender will receive my application?
• What information and documents are needed before submission?

Check your own report

You can request a free consumer credit report from a credit reporting body once every three months. Review it for unfamiliar enquiries or incorrect information and contact the relevant provider or reporting body about corrections.

Sources and further reading

• ASIC MoneySmart: Loan rejection
• OAIC: Information on your credit report
• OAIC: What stays on a credit report?
• OAIC: Access your credit report

Prepared by Lewis Wilkinson, Managing Director and Finance Broker, Auto Asset Finance WA. Published 10 October 2026.

General information only, not financial or legal advice. Lending criteria, terms, fees and charges apply. Credit is subject to lender approval. Credit-score outcomes vary by individual circumstances and credit reporting body.