Does anyone know why a credit inquiry dings your credit score? We applied for a auto loan online and it seems like 4 banks have run our credit 10 times each. My score has dropped alot!
hale (not verified)
If are making self inquiries or inquiries made by your employer do not negatively affect your score and are called soft inquiries. But those made by prospective creditors (called hard inquiries) do affect your score somewhat.
Any prospective creditor considers too many inquiries as desperate and base part of their decision whether to lend or not on it.
Let me also tell you that credit scoring models nowadays count multiple inquiries within a short span of time as a single request.
When it comes to hard inquiries, just one doesn't "ding" your score. You have a certain limit you shouldn't exceed in a given amount of time. The exact ratio slips my mind, but I do know that 10 inquiries is not good. Like previously mentioned, it shows desperation for something others think you can't afford. Whether going to a dealership or applying on line, be aware that your credit may be run multiple times. An auto salesman would run it multiple times just to find someone to lend you the money so you can buy the car and allow him to get a commission check. The same with online. Your credit is run multiple times to find someone to loan you the money. In this scenario, the commission check is given to the person who was advertising the auto loan on line. So its not a commission for selling a car, but a commission for referring someone to an auto loan on line.
Does anyone know why a credit inquiry dings your
credit score? We applied for a auto loan online and
it seems like 4 banks have run our credit 10 times each.
My score has dropped alot!
WOW...
That's 4 (banks) x 10 (Hard pulls) x (2 CRs)= 80 "Hard
Inquiries" for a couple making one online auto
application. That's outrageous!!!
Did you get the auto loan? Are the terms favorable?
They are thugs and out to make money at your expense.
I would dispute each and every one of the 80 Inquiries.
Make the potential lenders prove that you had given
them authorization. Although you may have Authorized
Bank #1, you certainly did not authorize their buddies
(Bank #2, #3 and #4).
Dispute ALL "80 Hard Inquiries" because you have
absolutely nothing to lose. If not removed, they shall
remain for 2 full years (to the day).
I just want to add:
An INQUIRY is not just "running" your credit, or verifying
your name, address, phone number and SS numbers.
Know and understand that an Inquiry IS receiving your
FULL Credit Report with all your personal and financial
information.
In this case, your (and your husband's) complete CRs
were released 80 times to complete strangers
over the Internet.
Who are these people (employees) or companies with
full access to your information, and will the 80 copies of
your CRs be shredded or otherwise disposed of properly?
It's no wonder there is a huge ID Theft problem in America.
Just something for us all to think about before doing
business, anywhere.
If are making self inquiries or inquiries made by your employer do not negatively affect your score and are called soft inquiries. But those made by prospective creditors (called hard inquiries) do affect your score somewhat.
Any prospective creditor considers too many inquiries as desperate and base part of their decision whether to lend or not on it.
Let me also tell you that credit scoring models nowadays count multiple inquiries within a short span of time as a single request.
credit inquiry
When it comes to hard inquiries, just one doesn't "ding" your score. You have a certain limit you shouldn't exceed in a given amount of time. The exact ratio slips my mind, but I do know that 10 inquiries is not good. Like previously mentioned, it shows desperation for something others think you can't afford. Whether going to a dealership or applying on line, be aware that your credit may be run multiple times. An auto salesman would run it multiple times just to find someone to lend you the money so you can buy the car and allow him to get a commission check. The same with online. Your credit is run multiple times to find someone to loan you the money. In this scenario, the commission check is given to the person who was advertising the auto loan on line. So its not a commission for selling a car, but a commission for referring someone to an auto loan on line.
Does anyone know why a credit inquiry dings your
credit score? We applied for a auto loan online and
it seems like 4 banks have run our credit 10 times each.
My score has dropped alot!
WOW...
That's 4 (banks) x 10 (Hard pulls) x (2 CRs)= 80 "Hard
Inquiries" for a couple making one online auto
application. That's outrageous!!!
Did you get the auto loan? Are the terms favorable?
They are thugs and out to make money at your expense.
I would dispute each and every one of the 80 Inquiries.
Make the potential lenders prove that you had given
them authorization. Although you may have Authorized
Bank #1, you certainly did not authorize their buddies
(Bank #2, #3 and #4).
Dispute ALL "80 Hard Inquiries" because you have
absolutely nothing to lose. If not removed, they shall
remain for 2 full years (to the day).
Access to Personal and Financial Information
I just want to add:
An INQUIRY is not just "running" your credit, or verifying
your name, address, phone number and SS numbers.
Know and understand that an Inquiry IS receiving your
FULL Credit Report with all your personal and financial
information.
In this case, your (and your husband's) complete CRs
were released 80 times to complete strangers
over the Internet.
Who are these people (employees) or companies with
full access to your information, and will the 80 copies of
your CRs be shredded or otherwise disposed of properly?
It's no wonder there is a huge ID Theft problem in America.
Just something for us all to think about before doing
business, anywhere.