Looking for an auto loan, and I want to go ahead and apply for a loan so I know what price range to look in based on interest, etc. The issue is, I also might want to try to take advantage of dealer financing later, but if I apply now I will have a HP when I go to the dealer. How much will it lower me? My Wal-mart FICO is 770, my Credit Karma FAKO is 764 and says that I have a utilization of 3%, 100% on time payments, and 4 hard credit inquiries in the last 2 years.
Starting Score: 583 (CreditKarma, 2009)
Its hard to say since it varies. I had 1 HP last month and I dropped 6 pts but 2 recently and didn't drop any.
Just know with a car loan if going through a dealer they may try several different banks, so be prepared for multiple HPs.
Just know with a car loan if going through a dealer they may try several different banks, so be prepared for multiple HPs.
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........659 (FICO)........
........659 (TU08) ........
@TravisD wrote:
Its hard to say since it varies. I had 1 HP last month and I dropped 6 pts but 2 recently and didn't drop any.
Just know with a car loan if going through a dealer they may try several different banks, so be prepared for multiple HPs.
Yes, but those pulls will only be scored once (provided they are coded correctly). OP, just time it so that you are going to the auto dealer fairly soon after apping with your bank/CU. All auto inquiries within a short time (45 days?) are scored as one inquiry. Each inquiry will appear on your report, but they will be scored as one.
An inquiry typically only dings you for a couple points. If you are approved for a loan, you end up losing a few more points because of the new account and the lowering of your average age of accounts. Though sometimes, if you have a thin file, the new account might help you if it improves your mix of credit.
I guess mine was "coded" incorrectly since I got 4 hard inquiries. 
@TravisD wrote:
I guess mine was "coded" incorrectly since I got 4 hard inquiries.
No, as I stated, each inquiry will appear on your report. FICO's algorithm, however, will recognize them as auto inquiries and will only score one of them.
INQ'S are 10% of your fico score. 1 or 2 isnt a big deal but you do not want a large amount of recent INQ's it can drop your score a little but the older the inq's age the lesser the effect on your scores. Same applies for new accounts.
Score goes down 4-6 pts nothing to worry about, now if you get approved, it will go down even more when the card or whatever you are getting reports, but the score will jump back up in about 3 months give or take depending on your credit file.
