Truck Loans Australia :: Articles

Loan Finance: How to Shop Around Without Damaging Your Credit

How can I shop for loans without hurting my credit score?

Loan Finance: How to Shop Around Without Damaging Your Credit

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

If you are considering taking out a loan, you wouldn’t go out of your way to make it harder on yourself to get approved or to get a good interest rate, would you? Yet many loan applicants would enjoy a considerably better outcome on their loan application if they followed this important rule.

When you apply for a loan, whether it be an online finance application or in person at a bank branch, there's are a whole list of criteria that you will need to meet in order to:

  1. get approved for a loan that meets your needs
  2. get the best interest rate for the loan finance you want

Whilst your income, your age and your employment history are all important determinants for your loan eligibility, your credit rating may be the most important factor that a lender will use in:

  • determining your loan eligibility and
  • Need a Bigger Boat?
    Image for Need a Bigger Boat?We provide direct access to the best Boat Loan rates and options in Australia through our national panel of specialist marine finance brokers. Simply complete our quick & easy Boat Loan quote enquiry form to see if you qualify - and to gain access to the best Boat Loan offers from our broker panel.
  • the loan interest rate that you'll be offered if you do qualify

Ok, most everyone knows that you need a good credit rating to get a good loan - but many don't necessarily understand all of the factors that can damage your credit rating.

Late payments, defaults, bankruptcy, etc, rep some of the obvious things that will negatively impact your credit rating, but there is one key thing that a large proportion of would-be borrowers overlook ... and that is multiple loan applications.

Multiple Loan Applications 

If you're in the market for a loan to finance a home or a car (or anything for that matter), it seems reasonable that you'd apply with a few lenders and pick the one offering the best deal. Right?

After all, there are so many loan offers at your fingertips, they all make it really easy apply and comparing the responses is the best way to test for a loan approval and know that you'll get the best deal. Right?

You'd be wrong on all counts ... and here's why.

Each time you make a loan enquiry, the lender checks your credit file in order to very information that you have provided and to determine the risk to them in lending you money.

Each time a lender accesses your credit file, the enquiry is recorded on your credit file. In other words, whenever you go shopping for a loan, the lenders all get to see all your other enquires.

Each loan application, mortgage enquiry, credit cards, personal loans etc are all listed in your credit file.

Here's the Problem

Lenders do not like to see multiple loan applications on your credit file. In fact, most lenders have automatic disqualification rules for multiple applications.

The reason why lenders can be so inflexible on multiple applications is because they view anyone who has made more than a given number of loan enquiries in the last 12 months as a higher risk. And for lenders, it's all about risk.

If you are making multiple enquiries, it's probably because you are either

  • already having trouble getting approved and trying as many lenders as it takes in order to get approved or
  • just "shopping around" without any real commitment to proceed with a loan.

It's important to note that it costs a lender money when you make a loan enquiry because they can't give you an approval or even a quote without processing a loan application and assuming all of the costs that go with that process (including the cost of acquiring your credit report).

When you do take out a loan, it can take a few years for the lender to recover costs and make a profit.

So, if a lender sees you as a "shopper", even though you may have a perfectly clean repayment history and a great job, they see some risks:

  • they will need to spend money and resources on processing a loan enquiry that probably won't proceed because you've already been approved elsewhere 
  • you'll possibly jump ship part way through the loan should you find a better rate. That's not profitable business for them
  • if you've racked up multiple enquiries whilst shopping for an approval because you've been declined elsewhere, every additional enquiry will make your position worse. Only a brave lender goes against the tide!

The lenders' attitude is, if they can clearly identify you as a shopper, they are unlikely to write the loan! The result, application rejected, reason: too many credit enquiries!

Here's the Solution

Find a good Finance or Mortgage Broker because they:

have access to most banks and lending institutions.

know all the deals and where to obtain the best deals for you.

identify which lender/s offer the most likelihood for getting your loan application approved.

So, it's only after you've found the loan you want that you need to make a loan application.  You have only one application recorded on your credit file and you are not seen as a shopper.

Some people think that they can do just as good an analysis as a Broker. But, without access to the research technology available to the Broker, the most likely outcome would be an inferior deal and/or you mess up your credit rating in the process.  Counter productive.

Most Important

When dealing through a mortgage or finance broker, be sure to tell them everything. It's only by providing the broker with a complete picture of your situation and circumstances can he or she will be able to get you the deal that's best for you.

By definition, a Broker represents you and is not an employee or agent of the lender/s. If you are not completely honest with your broker, you run a high risk of being recommended to the wrong lender for your situation. This can result in you being approved at a higher interest rate than initially quoted for your loan - or your application might be rejected entirely.

That could serve to damage your reputation with the broker and lenders. Avoid!

Published: Tuesday, 24th Aug 2021
Author: 150


Truck Loans Articles

Understanding Your Options: A Guide to Commercial Vehicle Loans in Australia
Understanding Your Options: A Guide to Commercial Vehicle Loans in Australia
If you're running a business in Australia, choosing the right commercial vehicle loan can be pivotal to your success. Whether you're a small business owner needing a delivery van or a large company expanding your fleet, understanding your financing options is crucial. - read more
Essential Document Checklist for Truck Loan Approval: What You Need to Know
Essential Document Checklist for Truck Loan Approval: What You Need to Know
Getting the right truck loan can be essential for business owners who rely on commercial vehicles. These loans cover a variety of commercial vehicle types and are crucial for ensuring your business operations run smoothly. Truck loans, specifically, provide the necessary finances to purchase trucks, which are indispensable in industries like logistics and delivery services across Australia. - read more
The Most Important Factors to Consider When Buying a Truck
The Most Important Factors to Consider When Buying a Truck
Buying a truck is a major investment, whether it's for personal use or business purposes. With the plethora of options available in the Australian market, it's important to consider various factors before making a purchase. Your specific needs, budget, lifestyle, and work requirements should be taken into account before making a decision to ensure the truck you buy fits your needs. - read more
The Ins and Outs of Commercial Truck Loans: A Buyer's Guide in Australia
The Ins and Outs of Commercial Truck Loans: A Buyer's Guide in Australia
Commercial trucks serve as the lifeblood of the Australian economy, providing vital links between industries and markets across the vast landscapes. The importance of these heavy-duty vehicles cannot be overstated, as they are pivotal in ensuring the smooth operation of both urban and rural businesses alike. Engaging in the commercial truck market is a significant investment, and understanding the ins and outs of financing such a purchase is crucial for business success. - read more
Understanding the Fine Print: What to Look Out for in Truck Loan Contracts
Understanding the Fine Print: What to Look Out for in Truck Loan Contracts
Stepping into the realm of commercial truck financing can be a highway riddled with complex terms and conditions. Understanding commercial truck loans is not only about getting the keys to a new vehicle; it's a crucial investment in your business's future. As a borrower, you need to navigate through the fine print to find a loan that fits like a glove. - read more

Finance News

RBA Maintains Stance Amid Inflation and Labour Market Challenges
RBA Maintains Stance Amid Inflation and Labour Market Challenges
28 Oct 2025: Paige Estritori
The latest commentary from Reserve Bank of Australia (RBA) Governor Michelle Bullock suggests that the central bank is unlikely to implement a rate cut in the immediate future. Despite recent data showing a rise in unemployment, Bullock labelled this as a single data anomaly rather than a genuine trend. The RBA remains focused on managing inflation while attempting to preserve gains in the labour market, although current data indicates potential reversals to pre-pandemic employment levels. - read more
Insuregroup Experiences Significant Growth in Truck Insurance Uptake
Insuregroup Experiences Significant Growth in Truck Insurance Uptake
28 Oct 2025: Paige Estritori
Insuregroup, a brokerage specialising in the transport and logistics sector, has reported a substantial 25% increase in truck insurance policies over the past year. This growth underscores the escalating demand for comprehensive insurance solutions as Australia's freight activity intensifies and regulatory requirements become more stringent. - read more
Transtar Linehaul's Fleet Goes Under the Hammer Amid Industry Challenges
Transtar Linehaul's Fleet Goes Under the Hammer Amid Industry Challenges
28 Oct 2025: Paige Estritori
The Australian transport industry is witnessing a significant event as Transtar Linehaul, a prominent trucking company, enters administration, leading to the auction of its $6 million fleet. This development not only presents opportunities for potential buyers but also highlights the ongoing challenges within the sector. - read more
Australian Truck Market Exhibits Signs of Recovery in Third Quarter of 2025
Australian Truck Market Exhibits Signs of Recovery in Third Quarter of 2025
28 Oct 2025: Paige Estritori
The Australian truck and van market is showing signs of stabilisation in the third quarter of 2025, despite an 11.8% decline in year-to-date sales compared to the previous year. This trend suggests a potential turning point for the industry after a period of sustained softness. - read more
Austal Limited's $100 Million Loan Fuels U.S. Shipbuilding Expansion
Austal Limited's $100 Million Loan Fuels U.S. Shipbuilding Expansion
26 Oct 2025: Paige Estritori
In a significant development for the Australian marine industry, Austal Limited has secured a $100 million loan from Export Finance Australia (EFA). This funding is designated to support the expansion of Austal's shipbuilding operations in Mobile, Alabama, specifically for the Final Assembly 2 (FA2) project. This initiative aims to enhance the company's capacity to construct vessels for the U.S. Navy and Coast Guard. - read more

Start Here

Get a free truck loan eligibility assessment and compare truck finance and leasing options without accessing your credit file!!
Loan Amount:
Postcode:

Quotes are offered free & without obligation. We respect your privacy.

Knowledgebase
Margin Call:
A demand by a broker that an investor deposit additional money or securities into the account to cover possible losses.