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Pre-approved for a car loan by one credit union. Rejected by other CU I didn't apply to.

New Member

Pre-approved for a car loan by one credit union. Rejected by other CU I didn't apply to.

So I recently was pre-approved for a car loan by my credit union. They ran a hard inquiry. The dealership that I was buying from also ran a hard inquiry, as I wanted to see who had the better finance option.  Got a notice from another credit union (that I'm not a member of) saying that I was rejected for a car loan. Here's the thing, I didn't apply for a car loan from that credit union. When I went into MyFico to examine my activity, I learned that several other institutions ran hard inquiries for car loans. I didn't apply to any of those institutions either. Is this normal?


Starting Score: EQ 780, TU 780, EX 761
Current Score: EQ 806, TU 791, EX 804
Goal Score: 800+ ALL 3


3 REPLIES
Community Leader
Super Contributor

Re: Pre-approved for a car loan by one credit union. Rejected by other CU I didn't apply to.

The dealership is the culprit here hence, look no further. Since you gave them permission to run your credit, that is usually what happens unfortunately.

Message 2 of 4
New Member

Re: Pre-approved for a car loan by one credit union. Rejected by other CU I didn't apply to.

Ah, I see. Thanks!  I guess they were running multiple inquiries to see if someone could give me a better deal than my credit union. Iff any of those other institutions were able to compete with my credit union, what would have been the benefit to the dealer?


Starting Score: EQ 780, TU 780, EX 761
Current Score: EQ 806, TU 791, EX 804
Goal Score: 800+ ALL 3


Message 3 of 4
Valued Member

Re: Pre-approved for a car loan by one credit union. Rejected by other CU I didn't apply to.

Yup they should put a rule that lenders should only use credit reports pulled by the dealerships..

 

Now its like 5 inquiries minimum when you try to buy a car... lol

Message 4 of 4