02-16-2013 06:43 PM
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.
02-16-2013 06:47 PM
02-16-2013 06:51 PM
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.
02-16-2013 06:54 PM
Shop around and ask the dealer before he pulls who he will pull. I once had a dealer pull 5 HP form various BMW financial options BAD
02-16-2013 06:58 PM
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.
02-16-2013 06:59 PM
02-16-2013 07:11 PM
Each case for a HP is different I had 2 pulls on dec.31 and scores didn't go down at all as a matter of fact EX jumped 10 pts next day!!!!!! figure that one out
02-16-2013 08:25 PM
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.
02-16-2013 08:35 PM
The last hard pull I had was last September after an evening of drapping for HP CLI's. I had two inq's on EQ and my score dropped by 20 points. I've read that the effect of new inq's or new accounts can depend on FICO's algorithmic "bucketing". I'm guessing that the bucket I'm in doesn't have too many people getting inq's and new accounts, hence the dramatic score drop.