Does a Loan Rejection affect your credit rating?

I'm wanting to get a car loan, and I want to apply myself instead of through the dealership.





If a bank rejects my loan, will that affect my credit rating.. Like will there be a note saying "Bank of Montreal rejected loan for $5,000" etc.?





Cause I'm worried about applying for a loan through the bank, and if it gets rejected then the dealership won't be able to give me one either.





BTW im in Canada will that even make a difference? thanks

Does a Loan Rejection affect your credit rating?
when the bank processes your loan application they check your credit rating. the acting of checking your credit report is called an inquiry. inquiries have a minimal impact on your credit report and to answer your question, no, there are no notes or anything to indicate the status of your application.


in the event that the bank turns down your auto loan request, it could be due in part to your rating and a host of other variables which we wont get into here.





at any rate even if you were to go to another dealership, they will see the inquiry date by the dealership on your report. but that is all they will see.





dealers are in business to sell cars, they will work with just about anyone to get them into a car loan if that means they can sell a car. i know, i work for the bank and look at a lot of car loans.
Reply:Rejecting your loan, no... but running your credit to see if they can approve it... yes
Reply:i think every time you apply for a loan, they check your credit, and it automatically takes points off your credit. I'm not sure how many though.