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Established Member
Posts: 48
Registered: ‎01-24-2017
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Credit Inquiries

It says that credit inquiries have low impact on our score but how much does it impact it?  We had 2 in the last couple of years and now we have 11.  We applied for a few credit cards, Capital One for a car loan and then apparently the dealer we went through sent out a ton for our new car even though we were preapproved through Cap One.  They said that they do one standard credit app for all even though we had the Cap One but I did not know it would be so many inquires.  When do they fall off?

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Registered: ‎02-28-2015

Re: Credit Inquiries


freshstart17 wrote:

It says that credit inquiries have low impact on our score but how much does it impact it?  We had 2 in the last couple of years and now we have 11.  We applied for a few credit cards, Capital One for a car loan and then apparently the dealer we went through sent out a ton for our new car even though we were preapproved through Cap One.  They said that they do one standard credit app for all even though we had the Cap One but I did not know it would be so many inquires.  When do they fall off?


INQs fall off your report in 2 years, but has less impact on you after year 1. 

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Posts: 16,338
Registered: ‎12-30-2011

Re: Credit Inquiries

[ Edited ]

kaykay65 wrote:

freshstart17 wrote:

It says that credit inquiries have low impact on our score but how much does it impact it?  We had 2 in the last couple of years and now we have 11.  We applied for a few credit cards, Capital One for a car loan and then apparently the dealer we went through sent out a ton for our new car even though we were preapproved through Cap One.  They said that they do one standard credit app for all even though we had the Cap One but I did not know it would be so many inquires.  When do they fall off?


INQs fall off your report in 2 years, but has less impact on you after year 1. 


For FICO it's zero impact after one year.

 

Freshstart: auto lending inquiries all get lumped together and scored as a single inquiry (rate shopping) if they're within a certain time frame... even the oldest models still being used that time frame is 14 days (newer ones are 45).  Since the dealer ones were sorted likely on the same day, if you picked up the Cap One financing right beforehand you're only looking at 1 inquiry on each bureau that was pulled.

 

For whatever it's worth, I would've done the same thing as you and let the dealer try to beat my financing, you did fine Smiley Happy.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 693, EX 2 719, EQ 8 732, TU 8 732, EX 8 728 (2/01/17)
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Re: Credit Inquiries

Revelate, what about inquiries that aren't coded as Auto Loans?  My EQ is showing 5 INQs from auto shopping last year and two of them aren't listed as Auto Financing.  

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Valued Contributor
Posts: 4,143
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Re: Credit Inquiries

If they aren't coded as auto, they may not be counted as a single inquiry.

 

Don't sweat it though.  Inquiries are as stated in the original post/question a low scoring impact criteria.  There are people with 40-50 inquiries that still have fantastic credit scores.

 

As has already been mentioned, inquiries while visible for 2 years only impact score for up to 1 year.  I say up to because many people only feel the impact for half that time or less, depending on how strong their profile is.

Established Member
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Registered: ‎01-24-2017
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Re: Credit Inquiries

I feel better now Smiley Happy  It was aggravating because one of the places they applied at was the Credit Union we filed Chap 7 on so of course they said no. 

Valued Contributor
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Re: Credit Inquiries

That happened to me too.  I had a car dealership a few years back do rate checking with about 12 different places, one was my CU and my CU actually cancelled my credit card with them shortly after.  My scores were pretty low at the time, but the CC was my oldest credit line of 14-15 years at the time that was a perfectly clean account.  Of course they denied me the auto loan which is fine, but cancelling my card put a very sour taste in my mouth.  Live and learn I suppose.

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Re: Credit Inquiries


EAJuggalo wrote:

Revelate, what about inquiries that aren't coded as Auto Loans?  My EQ is showing 5 INQs from auto shopping last year and two of them aren't listed as Auto Financing.  


The summation is pretty broad; I haven't figured it out yet frankly (maybe JLK93 knows more) but even ones listed as Miscellaneous are either deduped or flatly not counted.

 

Saw this explicitly during my mortgage process; it might be more complicated based on lender name as well though since this changes on a semi-regular basis I suspect it's simply a much broader scope for dedupe.  I wouldn't worry about it as a result, though out of curiosity what were the others coded as?

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 693, EX 2 719, EQ 8 732, TU 8 732, EX 8 728 (2/01/17)
Goal Score:    EQ 5 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Re: Credit Inquiries

To summarize one aspect of this thread:

 

You were offered what seemed like a no-way-to lose proposition, namely to have the dealer check your credit at a dozen different financing groups.  The dealer was to do the legwork, to make sure it all counts as one inquiry, etc.

 

Instead unexpected stuff happened.  BBS had an incredibly valuable card cancelled in the process.  Our OP had multiple inquiries that were not coded as auto, and thus may have many inquiries rather than one (from the perspective of FICO).

 

I have heard this stuff a lot.  I have an allergy to distributing my SSN and authorizing car salesman to do stuff with it.  My own feeling is that it isn't that hard for me to check around and ask several banks and CUs what their best rates are.  Takes a few minutes.  Getting an auto pre-approval is free and easy and it makes negotiating with the dealer for the bext price a lot easier,  Otherwise they tend to leave the price untouched and instead try to sell you on the Amazing 0% Financing offer they just got for you.

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Posts: 4,143
Registered: ‎04-11-2016
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Re: Credit Inquiries

Good advice above from CGID.  Had I been more informed back then when I purchased my last automobile, I would have done my own research and found a place to score the loan rather than leaving it up to the dealership.

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