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Posted in Auto Loans
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cmed2c2

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While purchasing a new car, the finance manager ran rate checks at over 12 banks and lenders.
These now show up as credit checks on my credit report and act as a negative. I was told that these were "soft" checks and would not affect my credit.

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When applying for credit anywhere it is usually a hard inquiry on your credit report not a soft inquiry. This means that your score could go down anywhere from 4-7 points/hard inquiry. But that being said, normally when you go to a dealership for financing and they do the "rate shopping" for you, it will only show up as a single hard inquiry on your report. I would review the document you signed giving them permission to pull the rates on your behalf and read the fine print to see if what you agreed to. Here is some more helpful information to save you money when car shopping from a New England nonprofit organization More Than Wheels: http://blog.morethanwheels.info/2014/05/14/5simpledecisionscouldsaveyouthousands/

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That is a typical occurance when dealing with dealerships. All of the inquiries will be visible on your report(s), but will only be counted (scoring wise) as one inquiry as long as they entered the correct information for the inquiries. Auto, mortgage and student loan inquiries are scored as only one if multiple inquiries are done within a short window of time, different versions of FICO have different time frames, to be on the safe side, do all of your inquiries within a 14 day period. Other inquiries such as inquiries for credit cards do not get this special treatment and each inquiry with them will be scored separately.

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