I recently visited a car dealership and allowed them to apply for financing on my behalf, in order to find a good rate. I am concerned that this dealer has applied to too many financial institutions. I have gotten several letters in the mail from creditors, denying me the financing. I heard somewhere that your credit report being pulled up too many times will hurt you. Is this car dealership hurting my credit by doing this?
2006-08-07 09:26:18 · 8 answers · asked by Quin810x 2 in Business & Finance ➔ Credit
Yes, multiple inquiries will have a negative impact on your credit score. There is a 14 day period where the score is not reduced by the inquiries just for situations like yours. Knowledge is power! Know your score before you go to the dealership. Go to your bank or credit union and get pre-approved if possible.
Good luck!
2006-08-07 10:20:30 · answer #1 · answered by Adios 5 · 2⤊ 0⤋
No, if you are being denied financing, you should look at other factors which may impact your credit history. If you haven't already done so, go to annualcreditreport.com and you can request for free one credit report from each of the major credit bureaus. There may be another blemish or a discrepancy that you can dispute on your credit history. The impact of financing inquiries to your credit score is usually negligible. You or a company can make several inquiries regarding the same loan within a 14-day window. Requesting approval for a loan is considered a "hard" inquiry, and may reduce your credit score by 5 or so points. Again making several inquiries within that two week span counts as one. On your credit report, you may see dozens of inquiries, but many of those will be "soft" inquiries, often credit card companies fishing for people who might qualify for a card. And you thought all those credit card offers you receive were just based on your good looks...
2006-08-07 17:49:16 · answer #2 · answered by Freddie 3 · 0⤊ 0⤋
If you go to several car dealerships in one day and they randomly pick lenders to send you to for the best credit, your ok. However, if you go again next week or the week after that it then shows as multiple pulls to your credit report. Be careful though, in the future do your homework and obtain your own financing thru the internet. You can print the approval and take it with you when you are shopping for a car.
Good Luck!
2006-08-07 09:36:54 · answer #3 · answered by whirlybird 1 · 0⤊ 0⤋
Too many inquiries can affect your credit score negatively. Each inquiry stays on your report for 2 years.
2006-08-07 09:46:04 · answer #4 · answered by Crazy girl 2 · 0⤊ 0⤋
Yes, it does hurt your credit to apply for too much credit in a certain period of time. Creditors look at it as if you are desperate for money. At this point you probably have to just back off and wait a few months until they are off your record.
2006-08-07 09:33:10 · answer #5 · answered by norsktjej1964 4 · 0⤊ 0⤋
whirlybird is correct. I would add 'damage' may not be the best word. A single inquiry won't have a major impact on you score, although it will have some. Multiple inquiries 'for the same purpose' over a day or two, count as one for scoring purposes.
2006-08-07 12:09:15 · answer #6 · answered by STEVEN F 7 · 0⤊ 0⤋
You might talk to the dealership about having the inquirys consolidated down to just one.
2006-08-07 11:35:05 · answer #7 · answered by echo 7 · 0⤊ 0⤋
Yes, that is true. They allow something like 20 credit inquiries in a month period. Don't quote me, but it is something like that.
2006-08-07 09:31:50 · answer #8 · answered by 3eleven 4 · 0⤊ 0⤋