Applying for multiple loans over a few months can negatively impact your credit score. However, multiple loan inquiries within a specific period (typically 14-45 days) for the same purpose (auto financing) typically counts as a single inquiry, minimizing the impact. A pre-approval usually involves a hard credit check and lowers your credit score briefly, but it allows you to lock in a rate with a lender before signing any paperwork so you can shop around for a better deal.