Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
SeanAdcock1

1 Contribution
6 People Helped
My score went down 16 points after 5 hard inquiries by the auto company. What is the average?
I did not know I was authorizing them to look for loans. Can I dispute these?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-7 of 7Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
1 Contribution
19 People Helped
Most Helpful Response

About killed my score

Helpful to 19 out of 19 people

I recently purchased a car  (shared by my husband and I but I had a slighly better credit score).    Without telling us they made 11 hard inquiries to my report and my credit score dropped over 40 points.   Never crossed my mind that this would count as more than 1 hard inquiry and certainly never crossed my mind that they would take so long to come off.    Will they ALL come off at the same time?  This was 1 yr ago and none have come off yet,  

  Of course this ruins my chance to purchase a house next spring - we were in the process of paying off other low balance cards so we could make headway on the larger ones as part of post-retirement downsizing.         Lessoned leared - get your financing locally elsewhere and then go to an auto dealership with your loan approved.  Our local credit union would likely have been very close but my husband was concerned about somebody purchasing the car (our credit union is a little slow).    

Reply by
dadstruck5

1 Contribution
0 People Helped
Helpful to 0 out of 5 people

Enter Your Reply i think that should be inlagely for inquirier .you make it hard on people.

Reply by
doloreswhite34

1 Contribution
1 Person Helped
Helpful to 1 out of 2 people

Good Evening, question, when you say get your finance locally elsewhere and then go to an auto dealership with your loan approved can you elaborate? Are you speaking only credit unions or can you try banks as well? I had the same thing happen to me in regards to hard inquiries on my report after co-signing for a vehicle. Thank you.

Top Contributor
5038 Contributions
1136 People Helped

Helpful to 20 out of 24 people

You most likely gave them your permission to pull your credit reports when you gave them the information they needed to pull your reports, so I doubt a dispute would do you any good. 16 pts sounds about right for 5 inquiries. The damage to your scores should be gone within a year and the inquiries will fall off in two years.

Reply by
TheRealGreyGhost

2 Contributions
13 People Helped
Helpful to 13 out of 17 people

On  the contrary. I would file the dispute that you only allowed 1 inquiry. If the say something like "well you credit inquiry allowed us to obtain credit for however many sources we needed to file". Once you have th dispute refusal pay the $100 and file a small claime naming the credit companies on the inquiry and the dealer. When you go into a dealership they will "shop" your loan around to all kinds of sources so they can make the sale. they don't give a **** about the impact to your score. I just had this done to me.

1 Contribution
3 People Helped

sbro

Helpful to 3 out of 3 people

I just had the same happen to me at a dealership. Eleven hard hits,which I had no idea was occurring. IAm so ****ed! My score took a nose dive it dropped nearly 30 points! They truly care nothing about your score at all,just getting that sale.

Reply by
longie3

4 Contributions
10 People Helped
Helpful to 8 out of 11 people

I can't speak for all dealers, but where I work we just pick banks where we feel we can get the best rate for the situation. Typically it could come up to about four or five total inquiries.  One for the dealership and one for each bank the deal was submitted to.  That being said,  if those inquiries are all made at the same time, they should just count as one instance  This also holds true for mortgage and student loan inquiries as well.  This was specifically designed to allow consumers to rate shop for the best deal without being penalized for excessive inquiries. This does not apply to inquiries for credit cards or other types of loans. 

Reply by
doitnow2

1 Contribution
4 People Helped
Helpful to 4 out of 8 people

Check out this info on myfico.com regarding multiple auto loan inquiries (known as rate shopping).

http://www.myfico.com/crediteducation/creditchecks/inquiries.aspx

1 Contribution
2 People Helped

HARD INQUIRIES

Helpful to 2 out of 2 people

I AM WRITING THIS IN CAPS FOR ONE REASON ONLY......I WANT IT TO STICK IN YOUR MIND WHEN YOU GO CAR SHOPPING

NEVER GIVE THE DEALERSHIP YOUR PERSONAL INFO WHERE THEY CAN PULL A CREDIT CHECK WHILE YOU ARE LOOKING AT CARS ON THE LOT......THATS WHAT THEY DO

GO AND OBTAIN YOUR OWN FINANCING BEFORE YOU GO CAR SHOPPING....THEY WILL TELL YOU THEY CAN BEAT THE RATE YOU ARE GETTING FROM THEIR LENDER..........THIS IS WHERE YOU WILL GET BANGED ON YOUR CREDIT REPORT....I THINK THERE IS A UNSPOKEN PRACTICE BETWEEN DEALERSHIPS AND THEIR LENDERS, WHERE THERE MIGHT BE KICKBACKS INVOLED............PROTECT YOUR SCORE BECAUSE NOBODY ELSE CARES ABOUT YOUR CREDIT

MY SCORE WAS REDUCED BY 60 POINTS FOR 8 INQUIRES. I DISPUTED IT WITH A CERTIFIED LETTER TO TRANSUNION  AND EXPERIAN....THEY BASICLLY SAID...SORRY ABOUT THAT.....STILL ON MY CREDIT REPORT.............ONLY GIVE PERSONAL INFO BEFORE SIGNING PAPERS

GOOD LUCK AND HAPPY CAR HUNTING

Reply by
harshitgupta

2 Contributions
2 People Helped
Helpful to 1 out of 1 people

I had the same thing in my mind. I didnt let them make a hard enquiry right away. I took my credit reports from Credit Karma with me. The first two places I went to, were not giving me positive signs. Then I went to this third place, explained my case and showed him my report. and It worked. I got the loan approved in just one enquiry and my score only went low by one point. Thanks to CK community.

2 Contributions
2 People Helped

Helpful to 2 out of 2 people

Unfortunately, no you can't because you had to give them your information in order for them to run a credit check. In the future, just refuse to give them personal information and instead tell them an estimate on your credit score so they won't run a check. I fell for this once this year and won't let them do it again.

3 Contributions
3 People Helped

peljam

Helpful to 2 out of 2 people

I had the same thing just happen to me and my husband.  We had 12 hard inquires on ours and it killed our credit.   They did not say they were going to do this and I have reported them.  It will not do any good though.  Now are credit is shot for at least 2 yrs.  Buyers beware!!!!!!!!!!!!!!!!!!!!!!!!!

Reply by
CrimsonKilljoy7

2 Contributions
2 People Helped

It should only hurt your credit score for one year, but will still show on the records when they run a check on you after that point.

1 Contribution
0 People Helped

I haven't had any auto loan inquiries

I'm sorry  but I haven't had any auto loan inquiries so I don't know why my score is down. I have a SUV and not quite finished paying for it so why would I have inquiries for an auto loan. 

                                                                                                                           Thank you, Benny Faye Douglass

Results 1-7 of 7Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.