For example when you're shopping around for a car the salesperson always wants to run your credit to see your score and i heard that if your credit gets screened a lot it lowers the score. is that true?
2006-07-22 20:11:21 · 11 answers · asked by *Debster* 2 in Business & Finance ➔ Credit
Yes but you can also have the inquiry removed. It is just a pain in the butt to do it.
2006-07-22 20:15:49 · answer #1 · answered by cognitively_dislocated 5 · 0⤊ 0⤋
You should not let a car salesperson run your credit while you are shopping around. Yes, a hard inquiry will lower your score each time it is pulled. Scores can be lowered 3 - 10 points every time.
A better stategy would be to get your own credit report and score and say my score is xxxxx here is a copy of my report. I do not autorize you to pull credit but if we were to do business what terms could you offer with this type of score?
Any financial sales person should be able to answer that question and when you have shopped around (banks, auto dealership, credit union, etc.) and have found a lender then let that lender pull your credit this way you only have one inquiry instead of many. Sometimes car lenders will run through mulitiple sources. Additionally, an FTC opinion is that taking a test drive or just shopping is not a reason for a car dealership to pull your credit.
Plus you should negotiate on the price, features, maintenance package for the car before you discuss financing with salesman. I usually would suggest you tell salesman you are paying cash. This way you can negotiate the best possible price.
Good Luck
2006-07-23 03:23:35 · answer #2 · answered by teenriodoll 3 · 0⤊ 0⤋
I believe they call it shotgunning when car companies send you to everyone and you get like 8 inquries. Now the bureaus tell you that when youre car shopping and they pull many inquiries all at once that it will only count as once. I dont think this is true though. Also one thing to consider is that how much your score is affected by inquiries depends on your credit profile to begin with. Inquiries only make up 10% of your score. If you have a great score then inquiries wont be a big problem for you. However if your score is not great then the inquiries will affect you more. Its only inquiries in the last 12 months that are figured into your fico score.
Getting inquiries removed is easy if you know what to say. Simple, fraud. I believe these inquiries are a result of fraud.... i.e WASNT ME. Now if an account resulted from the inquiry, then this wont work. If you dispute before an account shows up youre good. If you were denied the credit then youre good. You do have to call to dispute inquiries. Sometimes you'll get someone who tells you that you have to contact the company that put the inquiry on there because an inquiry is in fact a matter of record. It DID happen. You're not disputing that it happened, youre disputing the permissable purpose. You didnt generate nor authorize this inquiry. Thats where the fraud thing comes in. They transfer you to special care, you say yes I do think it was fraudulent, they get removed. Done it more than once. Yesterday with Experian, 6 inquiries. They take up to a month to do it (experian does). Equifax is faster and transunion seems to lose inquiries all on their own.
annualcreditreport.com
pull your free reports and see whats there. dispute online, or ont the phone.
Good luck
2006-07-23 05:35:54 · answer #3 · answered by Bobbie 3 · 0⤊ 0⤋
Yes it will and you do not have to let them run your score to get a good deal on a car. Make them give you the good deal then if you like it let them run the score. This will cut down "hits" on your credit report. And, to add to daniels answer it only counts as one hit if it's within a 7 day period.
2006-07-23 03:20:34 · answer #4 · answered by silent*scream 4 · 0⤊ 0⤋
yes and no. if you shop around for financing for a house or a car, they count it as one report, if it is within thier time allowed. many of the credit cards and stuff are per report, so if you get denied a lot then it will lower your score.
2006-07-23 03:18:30 · answer #5 · answered by daniel_97202 5 · 0⤊ 0⤋
It normally does inquires normally stay on your credit report for 2 years. The more credit you apply for the more desperate you look to get credit. This might hurt your chances of getting credit at a decent interest rate.
2006-07-24 16:42:57 · answer #6 · answered by Crazy girl 2 · 0⤊ 0⤋
There a whole bunch of articles on credit score and reports at
http://www.debtsmart.com/cgi-pl/article.cgi?cmd=category&cat=Credit%20Reports&page=1
jack
2006-07-23 06:55:03 · answer #7 · answered by jackvanz 1 · 0⤊ 0⤋
yes if i recall correctly i was told once too
2006-07-23 03:19:00 · answer #8 · answered by John D. 2 · 0⤊ 0⤋
Yeap it's true..
2006-07-23 03:17:06 · answer #9 · answered by Laci 2 · 0⤊ 0⤋
i have been told that is not true.
2006-07-23 03:17:51 · answer #10 · answered by broken_jade 3 · 0⤊ 0⤋