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Contributor
BlueHusky
Posts: 193
Registered: ‎04-01-2012

Does a hard pull lower credit score a lot?

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)
Current Score: 783 (Walmart Free FICO, March 20, 2012), 774 (Equifax, BoA Pull, 2/20/13)
Goal Score: 800+


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Contributor
TravisD
Posts: 94
Registered: ‎01-02-2013

Re: Does a hard pull lower credit score a lot?

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.
........???................659 (FICO)................659 (TU08) ........
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Does a hard pull lower credit score a lot?


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.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Senior Contributor
myjourney
Posts: 25,176
Registered: ‎02-07-2013

Re: Does a hard pull lower credit score a lot?

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

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Contributor
TravisD
Posts: 94
Registered: ‎01-02-2013

Re: Does a hard pull lower credit score a lot?

I guess mine was "coded" incorrectly since I got 4 hard inquiries. :smileysad:
........???................659 (FICO)................659 (TU08) ........
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Does a hard pull lower credit score a lot?


TravisD wrote:
I guess mine was "coded" incorrectly since I got 4 hard inquiries. :smileysad:

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.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

Re: Does a hard pull lower credit score a lot?

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.



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Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
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myjourney
Posts: 25,176
Registered: ‎02-07-2013

Re: Does a hard pull lower credit score a lot?

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

"Intelligence plus character--that is the goal of true education"
I will be gardening until a better offer/bonus comes along
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Regular Contributor
ukimafija
Posts: 127
Registered: ‎08-13-2012

Re: Does a hard pull lower credit score a lot?

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.

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Valued Contributor
android01
Posts: 1,206
Registered: ‎09-22-2009

Re: Does a hard pull lower credit score a lot?

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.   

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