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Posted in Auto Loans
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Question By
JayPA

6 Contributions
14 People Helped
Apply for Auto Financing=9 hard hits = minus 24pts in credit. yay
I think it counted more than one hard hit for an auto loan. That stinks.

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Sad but true

Helpful to 1 out of 1 people

A lot of times when you apply at a dealer you need to read the fine print of the loan application, what they do is feed it into the computer which automaticaly applies for your auto loan if you have great credit than you get maybe 1 or 2 hits because you are considered "prime" and you get the top tier loan obviously they want to get you the best loan so you will be more inclined to sign. If your score is less than solid gold than you get denied the prime loan than you move into the different tiers of the "sub-prime" catagory and depending on where your score stands depends on how many hits you take untill they find a lender willing to finance you. 

 On the bright side you can write a letter of contest requesting the companies that pulled your credit to remove the pull and sometimes as a courtesy they will.  All you have to do is find a cookie cutter draft online "there are hundreds" and fill it out to your needs it does need to say something along the lines of, I did not give permission, if you find me remiss please send proof of my error etc. send them via certified to each of the companies and wait 30 days, if no responce "more than likely" contact the credit bureaus, show proof that you sent the letters "certified mail receipt" along with a copy of the original.  More than likely it will be taken care of.  If on the off chance the company responds with a "we had permission to pull your credit" letter fire one back stating  that the termenology in the agreement was too complex for the layman.  Most of the time just to save trouble they will remove it just as a courtesy but also because they don't want an issue, they have nothing to gain by holding that pull on your record and all to loose "you in the future as an example".  Try it you may be suprised.

5 Contributions
5 People Helped

Thanks

Just wanted to thank you for your advice.  I got an auto loan but only after there were 9 hard inquires were run and now my credit score has gone down 20 points and it brought me under 700.  I have been trying so hard for the past 5 years to bring up my score to over 700 and I finally reached it.  My nephew asked me to co-sign an auto loan for him since he had NO credit history and NO credit report.  The rate I got was lower than what he would have gotten if he applied by himself, but now my credit score is affected in a bad way.  I am going to write to the 8 finance companies that didn't approve me and ask for them to remove the inquiry from my report.  Should I be truthful and tell them what I just mentioned here, or should I tell them that I didn't give permission?

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