Hard Inquiries and Soft Inquiries

Hard Inquiries and Soft Inquiries

There are two kinds of inquiries that can occur on your credit report: hard inquiries and soft inquiries. While both types of credit inquiries enable a third party, such as you or a lender, to view your credit report, only a hard inquiry can negatively affect your credit score.

What is a hard inquiry?

Hard inquiries generally occur when a financial institution, such as a lender or credit card issuer, checks your credit report when making a lending decision. They commonly take place when a consumer applies for a loan, credit card or mortgage, and you typically have to authorize them. Most important to note, hard inquiries might lower your credit score by a few points and they may remain on your credit report for two years. As time passes, damage to your credit score usually decreases or disappears, often even before the hard inquiry falls off your credit report.

What is a soft inquiry?

Soft inquiries typically occur when a person or company, such as a potential employer, checks your credit report as part of a background check, when you are "pre-approved" for credit card offers and when you check your own credit score. A soft inquiry may occur without your permission. Soft inquiries may be recorded in your credit report, depending on the credit bureau, but they won't affect your credit score in any way.

One of the biggest misconceptions is that checking your own credit score using companies like Credit Karma will hurt your credit score. This is not the case. You can check your credit score at Credit Karma as often as you like and doing so will never lower your credit score.

Examples of Hard Versus Soft Inquiries

While we mentioned some common examples of which financial actions result in a hard or soft inquiry, here are some lesser-known actions that may incur a credit inquiry.

Hard Inquiries
Soft Inquiries
Usually
  • Applying for an auto loan, student loan, business loan or personal loan
  • Applying for a credit card
  • Applying for a mortgage
Sometimes
  • Applying to rent an apartment
  • Verification of identity by a financial institution, such as a credit union or stock brokerage
  • Renting a car
  • Getting a cable or Internet account
  • Opening a checking, savings or money market account
  • Requesting a credit limit increase
  • Getting a cell phone contract
Usually
  • Checking your own credit score
  • Pre-approved credit card and loan offers
  • Background check, such as those done by employers
Sometimes
  • Applying to rent an apartment
  • Verification of identity by a financial institution, such as a credit union or stock brokerage
  • Renting a car
  • Getting a cable or Internet account
  • Opening a checking, savings or money market account


If you are unsure whether a financial action you are about to take will result in a credit inquiry, ask the financial institution or company. Also, if a financial institution or company informs you that they will be checking your credit, ask them to distinguish whether or not it is a hard or soft inquiry.

Why Hard Inquiries Hurt Your Credit Score

While hard inquiries are necessary for certain financial actions, such as applying for a loan or credit card, hard inquiries should be minimized as much as possible. Your credit score may be penalized for multiple hard inquiries because applying for too much credit at one time may indicate that you are desperate for credit, or that you aren't able to qualify for credit. While one hard inquiry will usually just knock a few points off your credit score, multiple hard inquiries in a short amount of time may cause significant damage to your score.

Keep your hard inquiries to one or two a year. Credit Karma data shows that on average, consumers with lower numbers of hard credit inquiries have higher credit scores.

How to Dispute Hard Credit Inquiries

If a hard inquiry occurred without your permission, check your full credit report to see the full details of the inquiry and determine if you should attempt to dispute it.

Note that you can only dispute hard inquiries that have occurred without your permission. If you have authorized the hard inquiries, it generally takes up to two years for those hard inquiries to be removed. You can learn more here.

Conclusion

Before applying for credit, take time to build your credit score. With a higher credit score, you'll improve your chance for approval for the financial products you want and at the best terms and rates.

To keep track of hard inquiries, check your score and credit report at Credit Karma. In addition to providing you with your free credit score, Credit Karma notifies you of any changes to your credit report, including any new hard inquiries.

Editorial Note: The editorial content on this site is not provided by the bank or issuer. Opinions expressed here are author's alone, not those of the bank or issuer, and have not been reviewed, approved or otherwise endorsed by the bank or issuer. Credit Karma may be compensated by companies mentioned through advertising, affiliate programs or otherwise. It is this compensation that enables Credit Karma to provide its members with services like free access to your credit scores and free monitoring of credit and financial accounts at no charge.

 

Disclaimer: All information posted to this site was accurate at the time of its initial publication. Efforts have been made to keep the content up to date and accurate. However, Credit Karma does not make any guarantees about the accuracy or completeness of the information provided. For complete details of any products mentioned, visit bank or issuer website.

All Comments

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I am impressed, I know a lot of what was said here from past experience and you are gaining good advice. Car salesman will do multiple hards hits with ONE permission trying to find a company that wil give you a deal. They do not tell you that. Applying for any credit card, to get the free T-shirt or book bag, will be a hard hit on your score. Never go more than 50% of your credit limit of your scores goes down. If your limit is $1000, do not put more than $499 on that card. Also, when the credit card companies see you getting into higher debt with them and other companies. they suddenly start to raise your interest rate even though you were not late on your payments. They see you are struggleling with your  finances and go in for the kill because they can. If ever you get a call from a collection agency, tell them to wait while you start your tape recorder and ask them permission to record the conversation. They will either hang up or properly handle the situation. They are not allowed to threaten you with a lawsuit, call you at work, call you too early or too late at night, or mutilple times a day. They may leave a msg with their name and number to return their call. However,  not about them being a collection agency on an answering maching or voice mail that says why they are calling becuase anyone could hear the message and that would be a break of confidentialitey and a potentional Liable suit. If you are in trouble seek out a not for profit agency to help, not one that takes monthly payments from you and then says they will pay your creditors. That story always ends badly. I found HUD and Chatholic Charities very hellpful with No cost to me after I was in a car accident and unable to work for three years. Do not talk to anyone over the phone for more than an minute, tell them always do it by U.S. Postal mail, not emai either. In the event they harass you or do anything else the Fair Credit Bureau allows. you have an address to send a Letter or Sheriff to. Also, never admit to any debt until they prove you owe the money. Many times these debts get sold over and over again to another collection agency and the original paperwork is lost, so they can not prove you owe the money. I had ATT harass me for six years for a debt they said I owed of $30. I never had an account with ATT and asked them to prove . Every six months a new collection agency called saying I owed ATT but the amount kept going up. It wasn't until my lawyer handling my car accident sent a demand letter asking for proof of the debt, that the calls stop. Also, regular installment payment like a car or mortgage are good for building your credit, but they like to see revolving payments too as in Department stores, one month $213, pay it off, one month $399 pay it off, one month $29 pay it off.  Remember to have a personal relationship with your local bank. If they know you and like you they can bend the rules a little.

Reply by
kkay1

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I totaly agree with what your saying What got me is I had told the Car Dealer that i was already approved and he said it wouldnt hurt to SEE Well there were 5 hard inquirys from that 1 dealer!! My score went way down and they could not find me a better deal than what i was already approved at!! I am going to contact the credit bereaus and explain, hopefully they can take one or two off!! Learned my lesson!! And i work so hard to have a good rating!!!

Reply by
GMCEnvoy123

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This is a wonderful and very helpful tool in trying to clean up your credit report.  It takes you half your life to realize how very important a clean credit report is. But, I guess that's just life for you.  I am being very concientous of everything I do now. I want my credit report clean, like it used to be before a very bad marriage and man, both of which are gone...:  ).  Thank you very much for this service.

Reply by
hiteshwadhwa123

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Thanks so much for these pointer...I made few mistakes without realizing that I was hurting my score...one of them was closing my oldest credit card to save annual fees...or just a casual inquiry for home loan, I never had any intention to buy...

Reply by
truaxrl

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Thanks, missdoss!!  I hope your situation has improved!!  But, thanks for the sacrifice for info for the rest of us.  I am going to cut and past this so that I have it to refer to!!

  Robyn

Reply by
Exelon

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Very helpful advice...thanks!

Reply by
moonsister22

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Thanks so much for all the information.  I really needed that although I knew some of it from reading a couple of books on managing credit and debt.

Reply by
Radiocontrol2

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very helpful, thank you

Reply by
jholl99

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Thank you for your advice.  A lot of my negative accounts are because of past medical bills.

Reply by
AMISISI

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Thanks for giving understanding on how to deal the credity debt .

Reply by
1write4techs

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I also went to get a car loan and I told the dealer I had a pre-approval he spoke to "his" boss and the "boss" said we should run it to find the financing. We had just bought a new car a couple of months before from the same sales guy so I told him I didn't want any more hits so when we signed the paper giving approval to run the credit we wrote on the application "only THIS agency".

Well needless to say his "boss" took it upon himself to run it to everyone. I got a notice from Credit Karma I had 7 hard hits and I was fuming mad.

I wonder if I have a copy of that change if I could get them off my report?

Reply by
marcusflinn1

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Was wondering if you could clarify a statement I was told today by my local insurance agent? He said that you could run as many card credit inquiry's you wanted in a 30 day period and only one would affect your your credit score as long as the are pertaining car loans and house loans. Hope someone can help. Thanks

Reply by
Ron7624

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Yes, be wary of car dealers.  One dealer that could not find a good deal put 2 hard hits on me 2 years ago with a medium credit score. I did not buy a car that year.    I just bought a new car 3 weeks ago and the salesman wanted to ashure credit before we found the car even.  I would not let him telling him that we both knew that I would be approved for the credit and I only wanted one hard hit on my credit score.  He did comply, but started out wanting to trash my score.

Reply by
dofaust

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There is much going on re the use of the credit databases than the consumer is aware: old "mirrors" of the database are sold cheaply, and they are the most inaccurate versions.

Creditkarma AND creditsesame both provide scores that a lender will not receive. My lender, a bank, got a score 50 points higher than the TU score reported by "creditkarma" - who is a TRANSUNION affiliate.....

The credit bureaus will intentionally keep erroneous data in their best database, in order to generate inquiries to correct it. The credit bureaus make big bucks by generating inquiries, by selling old inaccurate "mirrors", and by intentionally keeping incomplete and/or inaccuratte data. You would too, if you made big bucks that way. 

Expect NO HELP from the Consumer Federal PProtection Agency (CPFA) re the FCRA - they will simply refer you to a private attorney. Goood luck with that, Most effective is to goo to Small Claims Court - neither your creditor, the credit bureau, or any collection agency will show up to confront you in court unless you actually owe them a large amount of money. Be aware that you can take the credit bureaus to Small Claims Court for (Negligant or Intentional) Infliction Of Emotional Distress. But....check with a lawyer first since there may be deep pockets that may inyterest them!

Reply by
jordy12345

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Not all of what you said about the collection agency was correct. You have to give the mini on a voice mail which says "this is an attempt to collect a debt and information obtained will be used for that purpose." Probably dont talk unless you know.. 

Reply by
Yovani82

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Excellent information! I will keep that in mind.

Reply by
suizomex

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Thank you ! Thank you.

I look forward to more info from you.

Reply by
1longrod

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Thank's for the infor!!!

Reply by
michelleb2011

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thank you soo much very encouraging and helpful.

Reply by
navygulfvet

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Something that has got me is after my BK I bought a car. The score was rising dramatically as I paid the moment I got the email for "payment coming soon" kind of thing but my score was dorment, didn't raise anymore so I got one of those high interest rate cards...you know the capitol one card for 22.5% deal just to increase my credit score.

Now my score has dropped 100 points and the card is not showing on my score. Why not? I pay everything on time....sooner than on time and NEVER even remotely close to due date. 

can you answer my dilema?

Reply by
gringobren

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Credit Karma is very helpful and informitive.  Keep up the good work.

Reply by
angelgrl73

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Thank you for all your information i knew about some of the tihngs you have said but i did not know much of the rest of the information you also have given

Reply by
4kymora

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How can I know if the Car dealer did an hard inquirys on me? Where can I check it?

Reply by
ksk1957

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Thank you for the great info. I have tried to demand proof of a debt,  the pat answer is I didn't inquire in a timly manor.  How can I request proof of a debt I didn't know I had?  Now I know how to do it.   Thanks again!!!

Reply by
vanquished

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So I just got a new car (Last day of March), and one dealer ran 5 inquiries (without telling me, in fact they did it after I had walked away to get me a better rate), then the dealer I bought the car from ran it again twice. and I already had one hard pull from a new credit card back in February. Since april my transunion has dropped 61 points... One of my credit cards has 60% utilization (I still make payments every month but its currently in a year of 0% interest so I figured why bother) the other 3 have 0% utilization, rarely if ever use them. According to credit karma the 3 most important categories are all "A" rating, Age of credit history is a D, Total accounts is a C, and Credit Inquiries is also (obviously a D). Should I be worried? Though my total credit card utilization is at 15% should I not keep that one card at 60%? - I plan to pay it off in full in the month before the 0% interest runs out.

Other than the # of inquiries, number of accounts open (maybe), and that one card utilization %. I've never missed a payment on anything, and I have no "derogatory marks". My current Transunion rating is the lowest its ever been (again it dropped 61pts since April) and I was certainly not expecting that.... What can I do?

Reply by
Kenbinns

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They say right here on credit karma  not to use no more than 30% of your credit limit, not 50% before giving advise and messing someone else's credit up do some research !

Reply by
renee365

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Is there a way to lock your credit account against hard inquiries without your permission?

Thank you!

Reply by
Createdby1

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i agree as well. From education to purchasing lawn equipment, there is always a catch 20/20. Those calls roll in like mad, but imply about harrassment and fraud, there will be a brief silence. Its not a joking matter however, its their duty to swindle what they can, even if it isnt right. 

Reply by
RHill90

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I agree with everything your saying. In 2012 I went to go try to purchase a car after Storm Sandy and I only gave the dealership permission to run my credit once they ran my credit 11x I freaked out and contacted the credit bureau and it was an on going back and fourth thing. They claimed they didn't but I receieved the letters and everything in the mail and nothing was resolved so I'm coming to my 2 year mark where they will finally fall off....

Reply by
Crosstownbus

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You wrote this very well. Helpfu information in this piece.

Reply by
ambee01

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This is great advice. Wish I had found this post before. Lol I've spent countless hours researching.

Reply by
adamjay43

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missdoss's,

Thank you for the extremeley HELPFUL information! I used to have really bad credit due to my party lifestyle in my 20's. That's all different now because I did exactly what you preached!

Thank You,

The Big A

Reply by
proudmomma26

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I was just wondering who I could report harassment from then since there are about two or three companies that will call none stop?

Reply by
galanaza79

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nice thank you for that

Reply by
titus2001

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I had a major stroke  in 2011

Reply by
mssharont56

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Thanks for that vital information.  Trying to repair and bring my score up.  What are your thoughts on the advertised credit repair company I see advertised called Lexington Law?  I've heard of them before but not sure what their reputation is.  Tired of having low credit scores, getting older and want some decent credit scores.  Thanks, SAsh

Reply by
6719INEED

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I THANK YOU FOR YOUR COMMENT IT WAS SO VERY HELPFUL YOU HAVE A VERY HAPPY NEW YEAR..

Reply by
Beell98

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Great review. Thank you. I have only one thing to add. 

I got upside down with my credit cards, and I turned to CareOne. I stayed on that program for 3-1/2 yrs. I went from around $12,000 debt to $Zero.  They helped because they weild more influence to get card companies to lower your APR.

Here's an example: when I called Discover, they flatly refused to lower my APR. CareOne got them to lower it with one phone call.

Think about it, this is how they do it:  CareOne writes checks to Discover, not in the hundreds, but in the THOUSANDS of dollars every month. That's why CareOne can help with lowering APRs. Discover doesn't give a hoot about my paltry $50/month payment, but they sure as heck care about CareOne's big-fat check to them every month.  Just like the old addage, it's still true: Money talks.

I am not a CareOne rep, I'm just a very satisfied, former CareOne member.  It was the smartest thing I ever did. I recommend them to anyone who is in trouble with credit card debt.

Reply by
georgebednar

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I applied and was giving a loan by my local small town bank for a newly constructed house. After the approval, and it was very fast since I had an extremely high credit score (799) I notice 3 hard inquiries for the same loan. One was from my bank and the other two were a credit reporting agency like acer22 or somethink. They were all on the same day. My credit score was reduced significantly (722) and this is the only activity. What can I do to get the acer22 (or whater it was) to remove their hard inquiries?

Reply by
wasawasa

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menachem schneorson dob 4281966

ss 057823584 650 ne 177 st miami fl

Reply by
jgutz

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I found out the hard way when I bought a car.  I had started to rebuild my credit a good year or two prior, this was my first car experience.... Eleven hard inquiries later, I was approved...... Next time I will go to my bank first and see what amount they will approve me.  Thankfully, I am not intending on any other big purchases, such as a home, for another couple years. 

Reply by
Kandle5

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I never knew about the "hard inquiries" until now checking your credit more than once.  That happened to me when I co-signed for a car for a friend and the 2 companies we started with checked it 4 times each. I called them and they said that was normal. People need to be advised by these companies, by law, what they are doing and what is happening. I now see why my score went down during that time period. But it's too late now to do anything about it. Also, I have been transferring my credit card balances to 2 other cards in order to clear up my debts but the credit score shows that isn't the right thing to do as they aren't reporting the up-do-date actual figures...this also is hurting my credit.  It takes way too long for these companies and credit bureaus to update your life. I'm having to wait on them as I'm sure others are too.   This also needs to legally change somehow.

Reply by
colret

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Thanks for your outstanding advice. Is there anyway that you can get the hard ones removed?  I applied for a loan back in Nov. and went through several loan companies only to find that I was VA approved through WellsFargo.  However Quicken Loan, etc, etc, continued the process and my score went from 812 to 772!  Thanks again for your comments.

Reply by
Talalotu

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Wat was the purpose of this inquiry on my credit,,,,I do not recall this app inquiry,,,please let me,,,,,,,thank u ,,,,

Reply by
gqmodel10

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Was very helpful

Reply by
Nebaum

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I thought that multiple inquiries re the same type (ie auto loan or mortgage) within a 30 day period only counted as one inquiry. On my report i applied to 7 financial institutions for a mortgage but only was dinged 1 inquiry.

Reply by
bigpoppie2

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Thank you so much for your help......recently divorced after27 years and had to file bankruptcy .......all this is new to me and you have been so helpful...Thank You...

Reply by
biggilrdee

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Recently, my child went auto shopping and I allowed her to use my SS# as we knew she would need me co-sign.  Well, not knowing that credit inquiries would reduced my credit score and the numbers of lending institutions that the auto dealers check with,3 dealerships and 15 inquiries later, my credit score dropped 60+ points. Now I have to wait 2 years until the "hard-checks" will be removed.  I truly wish I had heard about Credit Karma sooner!!! I am going to refer everyone I know to this web-site.

Reply by
lloydkarma

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Thank you so much!

Reply by
Kermit1979

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Inquiries...

Be careful with the "recommended" credit card on this site.  I was trying to diversify' so that I could raise my credit score and lower my utliziation'.  I applied for the recommended credit card, got denied, and another inquiry.  If your credit ratine is poor and the recommended card is for average credit, don't do it.  You will likely get and added inquiry to your report.

Reply by
danimcc62

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Thank you for that wonderful piece of information.  Another good way to get collectors off your back is to send block letters asking them to stop and desist harassing you, especially if your only source of income is from the government.  If your only source of income is government(e.g. SSI, Public Assistance, Food Stamps, Medicaid, Social Security), they cannot in any way touch your income, especially if you get your monies by direct deposit.  Send them a block letter by certified return receipt, and I guarantee that the harassing calls & letters will stop.  Also, send a copy of your block letter to the Department of Consumer Affairs,  or the Federal Trade Commission.  That letter there you send by regular mail.  The block letters to the creditors goes by certified return receipt so that they cannot say they didn't get it.  So you're protected.

Reply by
BuddyLove1963

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I get hievery month for a hard repot wich was not authorised from  calverry portfoliio,(bottom feederd) that buy credit reports and go after people they think they an intimidate, and this happens every month, I have not autorized a hard report in over a year but every month my score goes down because of them, I don't need there help to lower my score, do a pretty good job on my own, they go after accounts that have ben dicharged , they don't have any conection with the original detter they need to make some laws to stop these pond scum, not that I think it will do any good, look how well the law is doing stopping drug dealer

Reply by
subodhonnet

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Great information! very helpful.

Reply by
burfk

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this is helpful but my exhusband has called and told chase bank that  I do not have a chase credit card and I do not hold or have a chase credit card so there is no way i can be using that percentage of it.BUT NO ONE SEEMS TO WANT TO CORRECT THIS.SO what do I do?    Thank you       Marilyn A Kacsanek

Reply by
wallacej5

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A signed credit application at a car dealership give the dealer permission to do what they want with the information you signed. Also, 50% is not a magic number. It's just a percentage. Honestly, lenders would like to see less then a 35% utilization of credit cars. It's called "pay availability." The moe pay availability you have, the better your score. If you have use 45% of your credit limit, it effect  your credit almost as much as using 50% of your limit. 

Reply by
nancychef1

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Watch out for cell phone companies!!!   I inquired about setting up a new account with T-Mobile for my new cell phone.   Both times they were very anxious to get me set up, but the first time I didn't have all the information the agent needed, but she didn't tell me this until after she did the hard inquiry.   So I have 2 in one week :(.

Reply by
jamieodom

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Completely agree with the part about the local bank. My credit has been pretty bad for the last few years, and I am just now getting it back up to a decent level. When no one would even talk to me about a credit card, I was able to get a high limit 0% interest card through the credit union I have had a checking account with for the past 14+ years. Now with their help I am finally able to start rebuilding my credit!

Reply by
Wargil

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Multiple hard credit inquiries for home or auto loans in a 30 or 45 day period only count as one, so whether you check 5 or 10 banks for a home loan in a week, your credit score is only affected as if you checked 1. The reason for that is because you're generally only buy one home or car at a time, and so you can get the best deal.

Reply by
evanrich

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TL;DR... perhaps you could have bought a book on how to properly form paragraphs with your credit?

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CreditKarma is so-so on its quality of reporting.  I see one debt that I haven't had for many years.  Of course, all the debts I paid off this month will not show up for probably two months.  Good advice not to let car dealers check your credit.  I used to bring a copy of my credit report and said I would show it to them if I was serious about a car, and would probably arrange my own financing at a local bank anyhow.  But younger people who don't know the credit game will get knifed in the back by not knowing the rules of the game, because it is a jungle, and survival of the fitess.  Kudos to CreditKarma, though, for the education for the masses and this forum.

Reply by
njazrael71

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Not entirely suire why you claim CreditKarma is only so-so on quality of reporting. They can only pull from your creditors and the 3 major credit reporting bureaus. It's up to you to ensure they have proper information.
You bringing a copy of your credit report means nothing if you are bringing an old one or are not bringing them from all 3 agencies. Dealerships could care less what's on your report. They care only about the score AND if you were saying you would secure your own financing, then they dont even need to run your report or score to begin with.

Reply by
Vixer

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I was one of those kids who got knifed in the back....I went car shopping for my first real newer car unaware of said hard inquiries, and that every dealer I went to that day ran multiple ones.

I've HEARD that since they are all auto-loan related I can call someone and get them lumped together, but I don't know who to contact.  the annual credit report site above looks like it may be able to assist me in this endeavor.

Top Contributor

Reply by
danie828

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Agreed DeltaBum!!

Reply by
khalilbutt

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I never did this.

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check this out      http://activerain.com/blogsview/1151616/can-you-sue-a-car-dealer-for-excessive-hard-credit-inquiries-

look for     Auto Loan Inquiries   read the following parigrgh ""Fair Isaac changed the rules a bit for Auto and Home Loan credit inquiries:

The credit-scoring model recognizes that many consumers shop around for the best interest rates before buying a car or home and that their searching may cause multiple lenders to request their credit report. To compensate for this, multiple auto or mortgage inquiries in any 14-day period are counted as one inquiry.

In the newest formula used to calculate FICO scores, that 14-day period has been expanded to any 45-day period. This means consumers can shop around for an auto loan for up to 45 days without affecting their scores. But the old 14-day rule might still apply at some lenders that aren't using the new version.""

Reply by
MrOskiBear

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Debi423 said this isn't true, so I wanted to clarify.  The multiple instances still appear as multiple instances on the report, but they only count as a single instance when calculating your score.

Reply by
sisterluje

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A few months ago I applied at a car dealership for a lease on a new car.  I explained to the dealer that my credit wasn't so great, and he said he would find a credit company to finance the lease.  I had no idea that the dealer would apply to ten different places in order to find a deal for me.  So, in one day I ended up having ten hard inquiries on my credit report.  I read your comments and see that all of these inquiries should count as one hard hit.  How do I know that the credit reporting agencies are counting them as one, rather then ten hard inquiries?

Reply by
debi423

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Not true.  I have had 4 hard inquires in one week and they are still on my credit report.

Reply by
IronMaidn

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This is was we did and ended up with a bunch of hits - what you are talking about would fall under that rule.

We have been recovering from a bankruptcy 8 years ago. We kept home and used-truck payments up, never missed any payment, built credit, paid off a lot of bills, medical, credit, etc. over time. Then the next move was to refinance our home to a nice 3.5% from 7.5%. There were multiple inquiries there. Once - a year later - it was all done and every little wrinkle ironed out properly, we knew it was getting time to retire our 18-year old car. Runs great, but falling apart, lol.

We were pre-approved for well more than what we wanted to spend. Found the right car. Presented the pre-approval. They literally demanded we fill out the credit application to N***** because we were from out-of-state (we took a trip to AZ; no cars available of what specific car we were looking for, here) and there were multiple hits.

We went from 2 to more than 8 hard hits inside of a few weeks once and then, again when we bought the car. Nowhere can one present a short summary of what we did. We paid, consolidated, reformulated, and followed a plan we made years ago on how to rebuild. The right thing. The hard inquiries hurt.

Reply by
SFXPHIL

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Apparently this rule does not apply in Maine. In August 2013 I went to a Dodge Dealer to inquire about a new truck They told me that I could get a better deal than the 4.9% I was offered by Cap-One I received 6 hard hits on my credit score all of which was within 2 days of my visit to the dealers?

Oh! and they could not come close to the 4.9% i already had. Needless to say i didn't buy from that dealer…

Reply by
JET6442

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Question: I had 4 hard inquiries when I purchased a new car. How do I get those combined into one inquiry? Does that happen automatically? The hard inquiries are showing up as 4 separate items. Thanks!

Reply by
trdunn

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Not true that 14 day is not true I shopped for a car and got a bunch of inquiries done on me and I still have them and its been over a year. The inquiries were done all on the same day . So that 14 day period is no true!!

Reply by
Tracieeee

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i recently tried to apply for auto loan. and few days later i found out 2 more hard inquiries on my account without any permission. and there was 7 hard inquiries totoal right now. they all showed up on my account. Do you mean that will count as 1 only? but it all there sniff**

Reply by
khalilbutt

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I never apply for auto loan

Reply by
SFXPHIL

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Apparently this rule does not apply in Maine. In August 2013 I went to a Dodge Dealer to inquire about a new truck They told me that I could get a better deal than the 4.9% I was offered by Cap-One I received 6 hard hits on my credit score all of which was within 2 days of my visit to the dealers?

Oh! and they could not come close to the 4.9% i already had. Needless to say i didn't buy from that dealer…

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I only applied for a **** credit card because I read that it would improve/help to rebuild my credit. Then i get approved, and come back a week later to see my credit rating went down 14 points? What gives? If Credit Karma is going to pimp the credit cards, perhaps they should ensure that this information is understood before you hit that 'apply' button. Highly iritated.

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Well, before CK my score was an F, they told me I neede dto apply for a Cap One CC and explained what I needed to do. I didnt want to get a CC because I am a Shopaholic and didnt want to take the chance on having this bill. They sent me the mailers for cap one (already preapproved) I did the application online and was approved for $300 credit limit (this was Nov 2013), this month my score has risen by 20 points! Kudos to CK

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Reply by
dpk1nba

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1st off, if you don't undersatnd something don't blame credit Karma. All the information you need to make an informed decision is right here on this wesite. You have to read it. 2nd, whay was your new credit card limit and what was your balance when your score dropped 14 points? You must keep your credit utilization below 30% and shoulb be below 20% if you want your score to improve.

Reply by
DaveAu

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dpk1nba is correct.  I now only use less the 20% of my total available credit. My score was in the dumps, but with using Creditkarma's suggestions, My score has gone up over 200 points. I now check it about twice a month, and will not exceed to 20% mark. My suggestion for those who want to build their credit, start with a Prepaid card. Pay it OFF every month, then gradually add more cards. (It took me two years to get my second card) Now I have five, and thats MY limit! I can do what I need with that.

Reply by
DeepDarkStar

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Your rating went down because you had a "hard" inquiry. Your credit card spending rebuilds it IF you handle it well and pay off quickly. Credit card is basically seen as money management through the eyes of someone looking at your report.

Reply by
MagniKen

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I find every information on this site very helpful, I took CK's advice and my score jumped by 38 massive point in a month. I was so surprised to see that happen but each comment on this forum counts. I have just one CC and I'm ok with it. 

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Reply by
cdf19699

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i do so agree. they tell us one thing and something else happens. this is so not fair.

Reply by
debelou

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I did the same thing. I read what CK suggested and applied for a Capitol One as they suggested to increase my credit score. Well, I got approved for the CC and I just checked my CK score and between the CC and the hard inquiry from the CC company my credit score dropped 23 pts. and I have yet to receive the CC so it isn't because of any balance. Very confused and quite unhappy about the -23pts it cost me on my credit score.

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we are buying a house, and i have been able to check my credit every day to see what affects my score.  i am very careful not to use my credit cards, because even a 5.00 purchase on your card affects your credit score, and some time it takes a month for it to come off once you paid on your credit card.  thank you credit karma for all this free info and all the helpful advice.  love the site.  i tell everyone about this site.

Reply by
SandyRose1984

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The biggest portion of how you get a score is based on payment history and balances owed. Creditkarma even states, as well another sites, that carrying a small balance won't hurt your score as long as it is time and under 30% of the limit. You get points based on what is reporting so a late payment can kill your score as well as high balance. Just use your accounts responsibly. I've had accounts for years and never missed a payment and keep my cards under 30% of the limit. I have always had scores above 750 and up to 800. 

Reply by
craigejr

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What???? You are badly misinformed . It is not a bad thing to use your credit cards and even more so a $5 purchse would actually raise your score not hurt it . Credit Card utilization is very important for building a good credit score and has a very high impact on your fico score as well . Heres an example .... If you have a credit card with a $500 limit. You have between $1-$150 that you can use to achieve 30 % or under utilization . Meaning this can actually raise your score by using it and paying off your balance monthly . And not just a little , sometimes as much as 30 point gain in 1 month

Reply by
Zenophobe

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You ain't kidding on what you said about cc purchases.

I just dropped 40 points in my CK score for a $32 purchase that showed up on one of my cards that previously was carrying $0 balance.  Hopefully my score readjusts after this reporting period as I have just paid off all my balance.

Reply by
wallstreet07

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40 points for a $32 purchase?  That sounds impossible.  I spent over $2000 during Christmas, paid it off the next month and my score didn't move one point.  There have to be some other factors involved with your score dropping that many points so quickly.  

Reply by
Shaunakay1

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Find out when is the closing date for your credit card and pay it at least 2-3 days before the closing date.  Eg:  My Macy's closing date is the 21st of each month.  That is also the date my payment is due.  I pay the balance off by the 18th so that on the closing date the 21st, may account will show a $0 balance.  I know this for a fact because I have monitored how the cards report and the pattern is always the same with all my cards.  Use Credit Karma to see ont he Transunion side what day your card reports to the bureau then check your statement to see what they list as the closing date.  NOTE: some cards closing and payment due dates are different so pay attention to that.

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I think it's wrong that hard inquiries affect our scores....I have A's in everything but hard inquiries, which is a D.  This is because I look around for the best rate in everything I apply for such as insurance, refinancing, personal loans, etc.  I particularly hate it that insurance companies check your credit score....how are you supposed to find the best price without getting hit on your credit????

Reply by
nikolausi

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We get penailzed for being smart consumers, because your score is an indicator of how profitable you are to a company (and not how good you are with money). The more loans you pay and the less you shop around, the more attractive you are to someone who wants to make money off of you. 

Reply by
cowboymike911

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I absolutely agree. We get penalized for being smart consumers.

Reply by
anc098020

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Insurance is a soft hit. It does not affect your credit. 

Reply by
GypsyGurl07

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I was recently approved for a Credit One credit card (pending verification of my identity), and a First Premier credit card. The latter required an initial fee of $95~just to activate the card! I wasn't interested. They had a Representative call me and put me on the spot. In a "momentary lapse of reason", I put down $25. I was told I could cancel if the card wasn't activated or used. I was then offered a better credit card option and took it. I called to cancel my First Premier card and the Representative wasn't so nice. She threatened me about "Hard Inquiries". Will canceling before even activating hurt my credit score? And thanks to everyone who commented about keeping your credit card balance less than 50% of your limit. It is 50%? Or is it 30-40%? I also didn't know that medical depts can hurt your credit. That's true, right? Mine are unsubstantiated and I need to address them! I've already forwarded one to my lawyer. Accurate answers welcomed!!!

Reply by
Liz5055

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I have the same issue here too. I searched online for best rates on auto loans. I made the mistake of using lending tree which dealt with multiple quotes. Therefore, ended up with multiple hard hits on my credit! Ugh! I read somewhere that if you shop for rates within one week to 10 days, they will count that as 1 hard hit. But who is "they"? LOL. Im so frustrated.

Reply by
ndeed

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I thought I was the only one who thought about that

Reply by
mdcarver

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I totally agree with thegrunt286

Reply by
rico303

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My take on this whole thing is this; most of the time I really do not need to buy anything on credit and so if I get, "not approved", I feel relieved and reason that I really did not need to go into debt and so they are doing me a favor. When I do get approved I get into debt.

Reply by
Tenanta

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Its not fair that inquires bring down my score when i didn't apply for a credit card, just keep receiving  offers in the mail , i never accept the applications.  Just because i move every  2 years,my credit score gets penalized  because the future landlord checks my payment backrounds which i keep PIF(paid in full).

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What can I do if a company did a hard inquire without my permission.  

You can first check your full credit report at AnnualCreditReport.com to see the full details of this inquiry. Then, you can attempt to dispute it, if it's erroneous. Here's an article on how to do so: http://www.creditkarma.com/article/dispute-credit-report-errors

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CK Moderator

Reply by
Blubanana

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I just had 1 removed, now I only have 1 left but tthis one is legitimate.  All that you need to do is get a Free credit report from Trans Union in the mail.  Once received, get a letter from the company that did the hard hit(s)stating that it was in error.  Mail that to Trans Union along with Name, Report number, Last 4 of SS#, DOB, Address and thats it.  Works like a charm if you get all that.

I learned all this from this site! : )  Thanks Credit Karma, you guys are AWESOME!!!!  Learned a lot.

Reply by
thurmanator

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i would like to know the same thing....we did not apply for 4 diffrent checks in one day, thats crap

Reply by
margiesegneri

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i would like to know why my credit drops as i continue to pay offf cards to o balalce 

Reply by
irishgirl59

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I have 9 hits for hard inquires and have not given permission for any of them.  How do I get them off?

Reply by
r4y6tt

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Just because my company changed names doesn't axplain an inquiry.

Reply by
Kandle5

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You need to go to that company and have them send information to the credit bureaus immediately so it can be removed. They need to send you a copy also. I just recently had to do this and it was quick....but then I might have just gotten lucky for once. But try that.

Reply by
rsams1951

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I don't have a account with bank of america. I don't know where the information came form.

Reply by
mactheknife22

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i didnt  give premission on must of these inquieries

Reply by
sherriness

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ok, i do not know who these people.  I have not applied for cards, loans nothing

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One failure of CreditKarma- when CK calculates their version of your credit score, they do not view hard inquiries the same way that the threecredit bureaus do - All related inquiries for the same borrowing attempt (aka - automobile or mortgage shopping) within a certain time period all count as one hard inquirty.  

I have 13 hard inquiries showing with Credit Karma - but 9 of them were all related to getting an auto loan - all happened the same day...  And while CK says this is not a big part of the score - it does, none the less, reflect in the score they give.  How much, though - I have no idea, but I do know my CK score dropped 20+ points in one day - and that was the only credit activity change...

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Reply by
cdf19699

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i agree with you The Battman. i too was told that a hard inquiry would not affect my credit score, but it did. i applied for a credit card on this site. i just looked at my credit score today, and it had dropped -14 points. i am sure because of that, i will not get the card. somebody does not know what they are talking about. it doesn't pay to even apply for credit. why does a hard inquiry take that many points from you?  i am done with this sight, because i think it is full of $&#@. i will check my credit scores when i have to elsewhere!

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this helped out alot and this site is #1 

Thanks for the love!

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CK Moderator

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I have 7 hard inquiries - all from the same auto dealership on the same day when I purchased a car last June.  I thought when one "event" did multiple checks looking for the best auto rate, it counted as one inquiry.  Is there anyway i can get that down to 'just" one ding?  Or do i have to wait it out for 2 years?   Thank you.   This service is awesome. 

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Reply by
danie828

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Repost: When buying a car, you will usually have your credit pulled at least twice. This practice is used by the dealer as a negotiating tool. 

1) DEALERSHIP runs your credit, usually pulls all 3, with scores. 

2) LENDER will then pull your credit AGAIN. Each lender the dealer submits to will probably also pull your report(s). 

There ARE rules in place to only show one inquiry on your report - but in my experience, since DEALERSHIPS are not auto lenders (as a general rule) .... you'll see one from the dealer and one from the lender. So if your report is submitted multiple times to multiple lenders, those will be multiple inquiries. If you KNOW your credit is a-tier, demand that the dealer not run your credit, and have them submit direct to the factory bank. Any time a lender pulls your credit report at your request to consider you for a loan, that inquiry will show up on your credit report and influence your credit score. The difference however is, if you are shopping around for a mortgage and apply at several places, the multiple loan applications won't hurt your credit score as long as the applications were made over a relatively short period of time.

Reply by
Freewaymc

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I know this is a little older post, but people are still reading and there's some bad information about shopping for a car here.  I have owned and operated an auto dealership for 11 years and was a finance manager for 5 years prior to that.   You SHOULD let the dealership pull your credit and shop rates for you!  Most dealerships are indirect lenders for muliple banks, 10 or more at my dealership .. designed for every situation.  Depending on your score, credit profile, debt ratios, year of the car, mileage, loan to value, all these factors the banks look at.  By telling a dealership to not pull your credit, they are blind to which banks would be the most likely to give you a  loan at the best rates available for you.  The dealership may still shop 6 banks, but thats pretty unusual as most finance managers will know by experience which banks are likely to give you the best rate and shop only them.  The score you see from this site, or any other site you get your score from, will not be the same score potential lenders use.  When shopping for an auto loan, the lenders will use a specific scoring model base on auto lending worthiness.  AUTO ENHANCED BEACON, FICO AUTO 11, or similar.  Your score is not attached to your credit and is calculated by the information on your bureau every time it is pulled and is different depending on which type of score they pull.  The 'Hard Inquiries' are always there, but most scoring models will 'clump' inquries pulled within a short period (1 month). 

http://www.myfico.com/crediteducation/creditscores.aspx

You may be pre-approved at your local bank, say at 3.99%.. and the dealership could be sitting on banks that will roll out the same loan for 1.99%, saving you a ton of money.   And, YES, dealerships make money (reserve) for signing that loan.  It's called business. And like every business, this is another way that dealerships depend on making money to be profitable.  It's usually 1-3% of the loan, and there is flexibilty to write that loan at a small percentage higher or lower depending on what the dealerships standard margin is for writing loans.  The loan at 1.99% may have a 'buy rate' or '0 participation' at 1.49% and the dealership marks it up a small amount sat 1/2 percent to make 1 point (1%).. Making a profit and still saving the consumer money over what they may get by themselves. 

Unless your credit is absolutely impeccable, with no possible reason for denial, let the dealership pull your credit and do not let them send it to the banks blindly.  When we talk to the banks, they may ask about information on you credit file while they are deciding wether they are going to give the loan.. Finance managers need to be prepared for this.. If they see any red flags on your file or credit app , that's the time to address them, not while your on the phone with the lender fumbling around for an answer.

Don't let bad information cost you money.  Believe it or not, all reputable dealerships WILL get the BEST loan for you!

Reply by
goddessguru

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a reply years later i see.... however, if you didn't get this info already... re: your car purchase.  anything pulled within a 14 day span of your search for the car/and the lenders... counts as 1. it can be disputed at each of the 3 C.B.- somethimes they catch it... or maybe one company  will catch it and the others wont.- remember to dispute in writing. good luck

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