auto insurance ran my credit several times is this bad for my credit rating?

Answer 1

Yes but inquiries are easy to remove.


Use the letter in the free credit repair kit on this website.

http://www.expert-credit-advice.com/free_credit_repair.htm

Answer 2

1

Answer 3

Superstar is absolutely incorrect.

Yes, multiple queries can affect your credit score, but it depends on the type of queries.

If you have multiple queries from credit card companies, it will look like you're trying to acquire a large amount of credit. This will hurt your score.

If you have multiple queries from auto finance companies, it will look like you're shopping for the best rate. This makes you a more informed customer (and a better risk). Multiple auto queries in a short period of time does not hurt your credit score.

Multiple queries from the same insurance company in a short period of time also don't indicate that you are trying to acquire a large amount of credit.

Yes, you should read the fine print on your applications, and then contact the insurance company regarding the inquiries.
But, I wouldn't worry too much about your score. It won't be affected as much as you think.

Answer 4

Yes and for your insurance costs if your credit score is low. Each time a check is ran, points are deducted (unless the inquires are for the same reason and within 14 days of each other). Insurance companies claim there is a link between lower credit scores and people who submit insurance claims, so if your score is low, many insurance companies put you in a higher insurance risk category. Not real fair, but legal.

Answer 5

Does "rate shopping." cause multiple inquiries on my credit?

Looking for a mortgage or auto insurance may cause multiple lenders to request your credit report. To compensate for this, the score ignores all auto insurance inquiries made in the 30 days prior to scoring. So if you find insurance within 30 days, the inquiries won't affect your score while you're rate shopping. In addition, the score looks on your credit report for insurance inquiries older than 30 days. If it finds some, it counts all those inquiries that fall in a typical shopping period as just one inquiry when determining your score.

For FICO scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score.

To assure that your "rate shopping" falls within the 30 day period I would suggest an online quoting service that gives you multiple quotes at once such as InsureMe - http://www.insureme.com/landing.aspx?Refby=614506&Type=auto

Ron @ InsureMe

Answer 6

To add to trigam41's answer, an inquiry by an insurance company 'should' be classified as a 'soft inquiry' and not be considered in computing your credit score. 'Hard Inquiries', those related to applying for credit are the ones that affect your score. BTW a 'self inquiry' is not even listed on your report.

Answer 7

If it's the same company thats doing the queries, it should not affect it at all.

Say like you have a credit card from Bank of America. More than likely, BofA will check your credit regularly. But these inquiries will not affect your credit report. Only the initial query will affect it.

Answer 8

well, kind of. Part of your credit report and credit scoring relies on "inquiries" meaning how many times you have been considered for credit. Too many inquiries may indicate that you are trying to take on too much credit debt. Inquiries stay on your credit record for a couple of years and they negatively effect your score, but not drastically. I learned this the hard way though when shopping for car financing recently for myself. I applied through several finance companies to shop for the best rate possible, then got a credit report a couple months later that indicated that these "inquiries" were hurting my score minorly.

Answer 9

It'll raise a few eyebrows next time you renew or go with another company. Read the fine print next time you go get insurance.Some might make it appear like you're a bad risk.

Answer 10

These rating companies should be outlawed. They manipulate the records and cause problem for even the best people.