When a Dealership Runs Your Credit, How Long Is It Good For?
Learn how long a dealership's credit check remains valid, how it affects loan offers, and what to consider when multiple inquiries are made.
When you apply for financing at a car dealership, they check your credit to determine loan options. This raises questions about how long the credit check remains valid and its effect on future financing.
Understanding the timeframe of a dealership’s credit inquiry is important when comparing loan offers.
Credit Inquiry Duration
A dealership’s credit check stays on your report for up to two years, but its effect on your score diminishes over time. Most scoring models only factor it in for the first 12 months. Lenders prioritize recent activity, so an inquiry older than a year is unlikely to impact new loan decisions.
The validity of a credit check for loan approval varies by lender. Some accept inquiries from the past 30 days, while others require a new one after a few weeks. Credit profiles change quickly due to new accounts, missed payments, or increased debt, so dealerships may need to pull your credit again to ensure accuracy.
Impact on Loan Offers
A dealership’s credit check affects financing options by influencing interest rates, loan terms, and borrowing limits. Higher scores typically secure lower rates, while lower scores may lead to higher costs or stricter conditions. Lenders also review outstanding debts, payment history, and credit utilization.
The timing of the inquiry can impact loan terms. If your financial situation changes between the initial check and loan approval—such as taking on new debt or missing payments—your terms could be adjusted or denied. Additionally, interest rates fluctuate based on economic conditions, meaning an offer from a few weeks ago may no longer be available.
Differences Between Soft and Hard Pulls
The type of credit inquiry matters. A hard pull occurs when a lender reviews your full credit report, slightly lowering your score as it signals you are seeking new credit. A soft pull, on the other hand, does not impact your score and is used for prequalification, background checks, or personal credit monitoring.
Some dealerships conduct a soft pull first to estimate loan terms before proceeding with a hard inquiry. This allows you to explore options without an immediate credit score impact. However, once you apply for a loan, a hard inquiry is required for lenders to assess your full credit history.
Multiple Dealership Inquiries
Shopping for the best loan terms may result in multiple credit checks. Fortunately, scoring models like FICO and VantageScore treat multiple auto loan inquiries within a specific period as a single event. FICO allows a 45-day window, while VantageScore uses 14 days.
Dealerships often submit your application to multiple lenders to secure the best offer, a process called the “shotgun approach.” This can generate multiple inquiries on your report, but they are generally treated as one when within the allowed timeframe. If your credit is pulled outside this window—such as after resuming car shopping a month later—each inquiry may impact your score individually.
Steps to Confirm Credit Pull Status
Checking your credit report is the best way to confirm if a dealership has run your credit. You can access a free report from Experian, Equifax, and TransUnion through AnnualCreditReport.com. Hard inquiries appear in the “Credit Inquiries” section, listing the lender and date. If you see multiple inquiries from different lenders after visiting a dealership, they likely submitted your application to multiple sources.
If unsure whether a dealership checked your credit, ask them directly. They must disclose hard inquiries, but some may not mention it unless asked. Clarifying before signing financing documents prevents surprises. If you find an unauthorized inquiry, you can dispute it with the credit bureau. While legitimate inquiries cannot be removed, inaccurate or fraudulent ones can be challenged and potentially deleted.