PaulYoungPak

2 Contributions 15 People Helped

Member Since: January 2012

Most Helpful Contribution

If I apply for a car loan with two different lenders, will that lower my credit score?

Nov 18, 2012
Helpful to 10 out of 13 people

Because the law requires that your personal credit report list all organizations that have requested it, the inquiries cannot be removed.

However, most credit scoring systems allow people to shop for the best rates on car loans without having any significant negative impact on their credit scores. Today, credit scoring systems count all inquiries for auto loans within a given period of time, usually around 14 days, as a single inquiry.

Car dealerships often send your application to multiple lenders at the same time in a process called “shotgunning” to find the best loan terms. As a result, lenders compete for the loan and the consumer benefits by getting the best rates and finance terms available to them.

If the drop in your score was in fact due to the loan application with the auto dealer, it should have had the same impact, whether there were eight inquiries or just one.

It is also important to be aware that the impact of inquiries decreases over time, so your credit scores should rebound fairly quickly, assuming there are not other issues with your credit history.

source: Experian Q&A

http://www.experian.com/ask-experian/20120229-inquiries-for-multiple-car-loan-applications-cannot-be-removed.html

Activity (2 Total Contributions)

If I apply for a car loan with two different lenders, will that lower my credit score?

Nov 18, 2012
Helpful to 10 out of 13 people

Because the law requires that your personal credit report list all organizations that have requested it, the inquiries cannot be removed.

However, most credit scoring systems allow people to shop for the best rates on car loans without having any significant negative impact on their credit scores. Today, credit scoring systems count all inquiries for auto loans within a given period of time, usually around 14 days, as a single inquiry.

Car dealerships often send your application to multiple lenders at the same time in a process called “shotgunning” to find the best loan terms. As a result, lenders compete for the loan and the consumer benefits by getting the best rates and finance terms available to them.

If the drop in your score was in fact due to the loan application with the auto dealer, it should have had the same impact, whether there were eight inquiries or just one.

It is also important to be aware that the impact of inquiries decreases over time, so your credit scores should rebound fairly quickly, assuming there are not other issues with your credit history.

source: Experian Q&A

http://www.experian.com/ask-experian/20120229-inquiries-for-multiple-car-loan-applications-cannot-be-removed.html

LendingClub Personal Loans

Oct 15, 2015
Helpful to 5 out of 7 people

I had a 785 fico score when I applied for a loan from lending club. I was bombarded by mail from them saying I was pre approved. Awesome I thought.

I was trying to consolidate my debt. My credit cards, my car loan and one private loan for $25,000.

So I filled out an application submitted and instant approval and showed that it was being funded.

The next day I got a call from an underwriter whosuspiciously asked why I was trying to borrow so much money. I said I was trying to consolidate my credit cards, what's left of my car loan (wasn't much), and a student loan that had a few k left.

He responded with a yeah I am going to have to decline your loan application.

lol. This was 2 years ago. I have since paid off all the debt I was trying to consolidate and purchased a house.

I definitely do not recommend using these jokers.