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Posted in Auto Loans
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shelia714

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Inquiries for a auto loan
If a car dealership runs your credit by four or more credit companies does each one count as a credit inquiry.

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That can be a complicated answer.

In General, A dealership will run your credit as many times as they feel they need to,  to get the best interest rate for you. They will generally run it at least twice,  once, when they have your name and the city you live in they'll do a credit check. Even though your haven't given them permission or signed anything. Then once they have you on the hook for a car you love, they'll shop you around for the loan that makes them the most money.  This is specially true if you have a lower score or some blemishes on your credit.    I've heard of as many as 16 inquiries in one day. 

         They want to know if your worth their time before they any time trying sell you anything.  

That being said.  Credit rating agencies take into account that the dealers are going to do this. Often, When you've had your credit checked  many times in a short period of time,  such as when you go car shopping and visited several dealerships,  They will delete or bundle most the inquiries, counting all the inquiries for a 30 day period as 1 plus another 1 for the loan that was actully signed.  The inquires will still show on your report, but the scoring shouldn't  reflect it. 

I purchased a new car in January.  Even though I had a pre-qualified loan offer from my credit union in hand, The dealer still ran my credit twice. once through their corporate financing and a second with another local credit union.  

A new loan and all those inquiries hits your score hard at first but generally,  make those first few loan payments and your scores should bounce back.  

Good luck 

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