Credit Cards Center Credit cards from our partners
Reply
Frequent Contributor
Posts: 367
Registered: ‎03-28-2008
0

I have financing lined up, but the dealer wants to run credit app?

This is rather irritating. I applied for a loan through my local CU, to purchase a pre owned vehicle. Long story short the deal fell through and I am still shopping. I found another car tonight that I want to purchase. After we agreed on the price, I told the salesman I already had a loan approved through my CU. He said in order to buy the car I need to fill out a credit app. He said the owners of the dealership require this. I don't want any unnecessary inquires on my file. He stated that it would just show up as the name of the dealership. What is going to make my blood boil, is if I give them the info and they shop a bunch of loans. Im buying an older vehicle, and I doubt they can beat the rate I have. I feel confident enough that I don't even want them to try. Is this legit? Is there anyway I can authorize just one pull, or will they have free reign to submit my file to a bunch of banks?

Highlighted
Valued Contributor
Posts: 1,941
Registered: ‎10-31-2011
0

Re: I have financing lined up, but the dealer wants to run credit app?


going2tdc wrote:

This is rather irritating. I applied for a loan through my local CU, to purchase a pre owned vehicle. Long story short the deal fell through and I am still shopping. I found another car tonight that I want to purchase. After we agreed on the price, I told the salesman I already had a loan approved through my CU. He said in order to buy the car I need to fill out a credit app. He said the owners of the dealership require this. I don't want any unnecessary inquires on my file. He stated that it would just show up as the name of the dealership. What is going to make my blood boil, is if I give them the info and they shop a bunch of loans. Im buying an older vehicle, and I doubt they can beat the rate I have. I feel confident enough that I don't even want them to try. Is this legit? Is there anyway I can authorize just one pull, or will they have free reign to submit my file to a bunch of banks?


SOP for a dealer that wants to shop your loan, expect at least 3 HP's which will count as 1, but still. If I were you I'd say "well tell your owner that I am a cash buyer (check in hand from your CU) and if he's willing to lose a sale because I don't want my credit run for a cash sale, then so be it I'm walking". There is always another car out there if he actually lets you walk.

Super Contributor
Posts: 9,668
Registered: ‎01-28-2010
0

Re: I have financing lined up, but the dealer wants to run credit app?


I have also heard some dealers claim that they have to run your credit on cash sales to verify your identity as required via the patriot act. Personally I don't think it is necessary, there are many ways to prove who you are without running credit.

+1 to pipeguy's advice ~ be prepared to walk out. If they happen to change their mind be sure to write in "dealer agrees not to run credit" on the sales contract.
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Blogger
Posts: 2,876
Registered: ‎02-02-2012
0

Re: I have financing lined up, but the dealer wants to run credit app?


pipeguy wrote:
 SOP for a dealer that wants to shop your loan, expect at least 3 HP's which will count as 1, but still. If I were you I'd say "well tell your owner that I am a cash buyer (check in hand from your CU) and if he's willing to lose a sale because I don't want my credit run for a cash sale, then so be it I'm walking". There is always another car out there if he actually lets you walk.

What he said +1011111

 

If you have something lined up with a CU and you really doubt that they are going to beat the CU's buyer, you aren't a finance customer to them, you are a cash buyer.

They need to treat you as such or you just walk away.

 

I'll bet they'll start backpedaling.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Senior Contributor
Posts: 3,491
Registered: ‎07-25-2008
0

Re: I have financing lined up, but the dealer wants to run credit app?

I'd walk.

 

There's no legit reason (I can think of) for them to pull a credit report when it's already been done by a CU and OP is essentially paying cash.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge
Moderator
Posts: 9,084
Registered: ‎03-06-2010
0

Re: I have financing lined up, but the dealer wants to run credit app?


pizzadude wrote:

I have also heard some dealers claim that they have to run your credit on cash sales to verify your identity as required via the patriot act. Personally I don't think it is necessary, there are many ways to prove who you are without running credit.

+1 to pipeguy's advice ~ be prepared to walk out. If they happen to change their mind be sure to write in "dealer agrees not to run credit" on the sales contract.

+1 If you fill out a credit app, they will run your credit.  You are taking away a large part of their revenue by coming in with outside financing. Don't let them run your credit and no matter what they tell you, don't give them your permission by filling out the app. If you walk, they will either come after you to do the deal your way or you find another car.

 

I've heard and seen reference to dealers pulling credit using the Patriot Act excuse. There was a lively discussion on another board about a cash (no loan) buyer that had his credit run without his permission. They said they had to do it to make sure his check would clear. Crazy, right????

Blogger
Posts: 2,876
Registered: ‎02-02-2012
0

Re: I have financing lined up, but the dealer wants to run credit app?

I think something is missing from the OP's post.

 

It makes a huge difference in whether when asked how the car was gonna be bought, if he said CU financing or cash.

If OP said that he was already approved from a CU, then the salesman probably just wanted to compete for the loan.

 

But if the OP said that he had a check cut already for the car and then the salesman says that he has to run the credit, then I'd think twice.

 

And definitely write down on the copy of your ID that you don't authorize a credit check to be run.

Shady things can happen at car dealerships.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Established Contributor
Posts: 1,013
Registered: ‎05-14-2008
0

Re: I have financing lined up, but the dealer wants to run credit app?

[ Edited ]

The seller has to identify exactly who you are under the heavy hand of the Federal Government.  Part of this is for terrorism purposes and part is to prevent money laundering.  The days are long gone when you could walk in with a wad of cash, or a check, and buy a car with no questions asked.  Your credit will be run if you are going to buy the car to properly identify you.  You can resist, but you won't get the car if the seller is staying legal......just get over it.  Your right to privacy is not absolute any longer.

Established Contributor
Posts: 1,013
Registered: ‎05-14-2008
0

Re: I have financing lined up, but the dealer wants to run credit app?

[ Edited ]

drkaje wrote:

I'd walk.

 

There's no legit reason (I can think of) for them to pull a credit report when it's already been done by a CU and OP is essentially paying cash.


 

 

Yes there is.....it's called the Patriot Act..

Senior Contributor
Posts: 3,491
Registered: ‎07-25-2008
0

Re: I have financing lined up, but the dealer wants to run credit app?


Watchmann wrote:

drkaje wrote:

I'd walk.

 

There's no legit reason (I can think of) for them to pull a credit report when it's already been done by a CU and OP is essentially paying cash.


 

 

Yes there is.....it's called the Patriot Act..


I speciflcally wrote "legit reason". Smiley Happy


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.