Thursday, 2 October 2025

What Happens When You Apply for Too Many Loans at Once? 

If you’ve been declined for finance and your first reaction is to “try somewhere else”—you’re not alone. But here’s the catch…

Every time you apply for credit, a “hard inquiry” is recorded on your credit report.

Do it once? No problem.
Do it five times in one week? 🚨 You’ve just signalled to lenders that you’re desperate.

And desperate = risky.

 

The Hidden Consequences of Multiple Loan Applications 

Here’s what really happens behind the scenes when you apply for too many loans at once: 

  • Your credit score drops instantly – Each credit check shaves points off your score.
  • Lenders see you as “high risk” – Even if you earn good money.
  • Declines trigger more declines – Once one lender says no, the next one is even more likely to do the same.
  • You get stuck in the “Application Spiral” – The more you apply… the worse your score gets… and the harder it becomes to get approved anywhere.

 

“But I Didn’t Even Take the Loan!” — It Still Counts 😬 

It doesn’t matter whether you accepted the offer or not.

  • Quote requests, comparison site checks, and “pre-approvals” can still leave marks on your file.
  • Even buy-now-pay-later, phone plans, or store cards can add to your inquiries.

 

How Many Is Too Many? 

Lenders don’t tell you this — but here’s the general rule: 

Number of Inquiries (Last 6–12 Months)  How Lenders See You 
0–2  Safe / Responsible  
3–5  Cautious / Mild Risk 
6+  High Risk / Likely Decline  

Most clients who come to us have 10, 20, even 50+ inquiries… and wonder why they’re getting knocked back everywhere. 

 

How to Stop the Damage (and Recover) 

  • STOP applying immediately.
  • Check your credit report to see what lenders are seeing.
  • Challenge unfair or duplicate inquiries (we can help remove them).
  • Let us plan the RIGHT path to approval—without hurting your score further.

 

Final Word 

Applying everywhere doesn’t increase your chances —
It kills them.

If you’ve been declined and don’t know what to do next, don’t guess. Don’t keep applying.

Talk to our team at Credit Repair Australia — we’ll assess your situation properly and help you fix the problem, not make it worse.