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Posted in Auto Loans
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Question By
Rmpwarren

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Why do I have so many inquires on a specific day when I applied for 1 loan?
Do these inquires hurt my score?

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Inquiries

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My score went down 16 points after a test drive, and 5 hard inquiries by the auto company.  Is that average?

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Multiple same-loan-inquiries

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Fact of Vantage score scoring model..... 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.

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It depends on what the loan was for. If it was a mortgage, auto or student loan, then the multiple inquiries will only be scored as one inquiry when done within a short time frame. You still would have the multiple inquiries on your reports, but the score ding would only be for one inquiry. If the loan applications was for something other than mortgage, auto or student loans, then each inquiry will be separately scored resulting in a greater decrease in scores. This is how FICO scoring works, your other reply was explaining Vantage ( I am not sure how Vantage calculates scores, nor does it matter in the majority of the lending world). Remember that most lenders use FICO scores, Vantage scores are used by very few lenders. The Fico scoring system is the one that you want to appease.

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I am sorry, I forgot to answer your question. You must have applied with a company that searches for loans for you, they submitted the information that you provided to them to many different lenders and that is how you ended up with the mulitple inquiries.

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