how will my credit be affected if companies check on my credit standing? more credit checks lesser score? tnx!

Question

im a first time car buyer

Answer 1

FICO scores can usually identify "rate shopping" in the mortgage- and auto-lending environment, so that you are not penalized with multiple inquiries related to one credit transaction. To be safe, it is a good idea to do your rate shopping for a given loan within a short period of time. (Note that if you order your credit report from a credit reporting agency to check it for accuracy, it will not affect your score, as it is not an indication that you are seeking new credit.)


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Answer 2

It will affect you negatively if you let companies check on your credit. Remember, if a company (where you want credit from) pulls your report and notices that you have had multiple credit inquiries in the past 6 months, it would point to the possibility that you have or are in the process of getting multiple loans/credits from all these companies.

This increases the risk that you pose to your creditor who might be considering giving you credit.

Solution: Do you research on what you want, before you go out to ask for credit. Do not have everyone pull your credit, especially if what they are offering you is not what you may be looking for. There are free credit reports which you can obtain on line at www.annualcreditreport.com. Use that ! You will see which are the companies that have been inquiring about your credit.

If there is something you see, that you don't know about, or disagree, dispute that with the relevant credit reporting agency. You can also OPT OUT of regular credit checks by calling 1-888-5-OPTOUT .

Unfortunately, you are responsible for your own credit ! You HAVE to help yourself, 'cause if something goes wrong, it will take you months, sometimes, YEARS to get everything back on track again .

All the best !

Answer 3

I would recommend you checking your own credit score and printing it out and taking it with you to the dealerships you visit. This way they will be able to see what your most recent credit scores are and unless you are absolutely ready to buy the car do not let them check your credit. They will more than likely tell you that they have to check your credit to see if they can qualify you for a good deal. However, if you have your recent credit report (less than 30 days old) with you then they will have an idea of where your credit score is. And yes too many credit inquiries will have a negative effect on your credit.

Answer 4

If the transactions "inquiries" are all done within the same day, it will not negitively affect your credit score, this is a common business practice. If you were on the other hand, to apply for financing online with several different companies over a months time, this will effect your credit score. Multiple inquiries on your credit report indicate you are actively pursing credit, the more inquiries, the more active you are and the greater chane of accumaliting debt. Inquiries will remain for 2 years on your report.

Now, car credit is different than credit card credit, same with a home ... these effect your credit score differently.

Answer 5

it will affect your score a little bit. but that little bit may be the difference between an okay rate and a bad rate. as a loan officer I suggest to my clients that when shopping for mortgages or, in your case, a car, have them pull their own credit from all three bureaus. this way, it's only checked once and you can take it with you and either show the dealerships your score and report without ahving multiple inquiries into your credit. your credit report will only be "valid" for 30 days. after that most people won't accept it and will have to rerun your credit again. but 30 days is ample time to find what you're looking for anyways. so pull your own credit, again from all three bureaus. pulling from one will not be sufficient enough. and take it with you when shopping. makes things quicker and easier on all ends and saves your score.

Answer 6

You can have about 5 to 7 checks on your credit before it will affect it. It depends have you had other checks on your credit recently. Credit card applications , new mortgage? Go to one of the Free credit report sites and check it for yourself. It doesn't affect your credit for you to pull it.

Answer 7

depends on how many check it, and how far apart the checks are-if the checks are being made within a certain time period it won't affect too bad

also as a side note, the only time it affects your credit is if you give them permission to pull your report.

Answer 8

Can you delay buying the car until you read Dave Ramsey's book The Total Money Makeover? It will change how you think about money. www.daveramsey.com

Good Luck

Answer 9

this link will show you the ways you can destroy your credit score.

http://money.cnn.com/2006/07/10/pf/credit_killers/index.htm