I foolishly signed a credit app at a dealership and had at least 6 inquiries reported and adverse effects as a result. How many times can they access your credit legally? Where and what are the specifics of the laws regarding pulling credit?
If you read the application you are authorizing them to shop pretty much as many places as they want. 5-7 seems to be pretty average. This is one of many good reasons to get preapproved with a credit union before shopping for a car. The reality is those inquiries won't really hurt because they are all for a single purpose done within a day or two of eachother but it can be a bit frustrating. Next time join Penfed, DCU or NFCU, apply take one HP and get preapproved for a better rate with less hassles. If you have good credit and want to get a promotional rate from the captive lender than next time only authorize them to send your application to that one lender.
Thank you for your response!
I appreciate the information. Truth is truth, whether we like it or not. My advice to anyone who might read this: Let the buyer beware and trust no one in the marketplace. Trust must be earned in ALL relationships, especially business relationships, period.
DO NOT sign ANYTHING without reading what you are obligating yourself for.
You can talk to the finance person and ask them to only run your credit with the bank they think will get the best deal. However, once they have your signature they are free to pursue getting you financing.
I'm currently fighting with the dealership that I purchased a vehicle from last fall. Went in with a pre-approved offer. Made that clear from my initial contact with the dealership and throughout the entire process. They still ran by credit about 9 times. I've gotten most of the fraudulent inqueries removed but have about 4 left and the dealership is being difficult about helping to undo the damage caused by their sales and finance staff.