Intro: One of the most frequent concerns coming up in the auto loan forums are how multiple auto loan inqs affect you and your credit score. The purpose of this thread is to answer frequently asked questions about auto loan inqs and dispel any myths.
What time frame do I have to apply for multiple inqs to count as 1?: The answer is that it depends on the scoring model used by your chosen lender. There are countless versions of FICO, Vantage, Beacon or other credit scoring models out there. Some scoring models gave you 14 days others 30 days. The rule of thumb is to keep it within 14 days. My personal suggestion is to simply plan your application and apply all at one time.
*Do multiple auto loan inqs really count as 1 inq?: Yes, they count as only 1 inq for credit scoring only. So if you have 10 auto loan hard pulls in one day, most credit scoring models will only ding you for 1 inq against your score. However, they will count as separate inqs for all other purposes. For example, when applying for other credit you can still be denied for "too many recent inqs". Remember that it takes more than a credit score to get approved. And you can be denied for a host of other reasons even with a 800+ score.
What can you do about being denied for "too many recent inqs"?: Most commonly, credit card applications can auto deny based on number of inqs. Call a backdoor number and recon the application. Get a manual review (actual person looking at your file), and they should be able to override "too many recent inqs" given everything else looks good. Your results may vary.
Why did the dealership pull my credit mulitiple times?: Dealerships make more money in their finance office than they do on the sales floor. They generate revenue for setting up loans with their captive lenders and other banks. The dealership will apply at several banks on your behalf and if they setup the loan they get a commission.
I didn't give the dealership permission to pull my credit!: If you've reached this point, then its hard to get them removed. To prevent this problem, never give your social security number to a dealership unless you intend to apply with them. Please read and then ask about what you're signing before signing anything. They might say its required for insert bogus reason here, but it is only required when you pay in cash in excess of $10,000. Be wary of shady dealership practices.
Conclusion: This is the first draft and I'll edit as questions or suggestions come up. So please feel free to add input or ask your own question. Remember, I'm just a myfico member and that any advice given here is based upon my own experiences and opinions.
