Getting online loan rate quotes is really easy, you can type in some personal information and you can get a quote on your car loan, personal loan, student loan, or mortgage almost instantly. This process is free and convenient, leading many people to compare several companies at once in order to make sure that they get the best deal possible.
The issue is that since online quotes are a fairly recent phenomenon, credit bureaus count each such quote estimate as an “inquiry”. What this means is that if you compare too many companies online by asking for quotes, your credit score will fall due to too many “inquiries.”
But this doesn’t mean that you shouldn’t seek online quotes for loans. In fact, online loan quotes are a great resource that can help you get the greatest rates on your next loan. What this information means, however, is that you should research companies and narrow down possible lenders to just a few before making inquiries. This will help ensure that the number of inquiries on your credit report is small - and your credit rating will stay in good shape.