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giggs42

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hard hits for car loan
Just bought a car. The dealer said the hits would all count as one. But I have 5. They are listed as Bank, Credit Union, Auto, and MISC. Is the different categories the reason they are not lumped as one? How can I clear it up?

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Dont sweat it...

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As a Fact of the VantageScore scoring model (as with most other scoring models like FICO brand as well).....

Consumers are encouraged to shop for the best loan rates and conditions. Accordingly, the VantageScore model does not penalize multiple inquiries made within a short period of time. When several inquiries are made within a shortened timeframe, it is assumed that the consumer is shopping around for a rate and not opening up multiple lines of credit.

The VantageScore model uses a 14-day rolling window in which all credit inquiries are de-duplicated. All inquiries within that window are considered one inquiry regardless of the type of account. So regardless of whether the credit inquiry is made in response to a mortgage, auto or bank credit card application, it will be counted only once during that 14-day window.

However, since you are allowed to know who looked at your credit, it will show you the other inquiries, even if they only count as one in your score.

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My answer regards Fico. If the lenders coded the inquries wrong, then you will suffer for their mistakes. Multiple inquries for Auto, Mortgage and Student loans will be scored as one when they are done within a short time period, that time period varies between different models of Fico. Even if the lenders coded the inquiries correctly you will still see the inquiries on your reports, however the score ding will only be for 1 inquiry.

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Credit card inquiries or loan inquiries other than auto,mortgage or student, do NOT get this special treatment, they will always be scored individually.

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Good news is that they only remain on your reports for 2 years and after 1 year they start to lose their effect on your score.

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