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Established Member
Pickle027
Posts: 32
Registered: ‎07-17-2012

Credit inquiries when shopping for a loan

In October I purchased a new car and, like most people, shopped aorund for the best rate. It ended up putting 8 inquiries on my report in a period of a couple weeks. Last week, I applied for a streamline FHA refinance and was told I need to "Stop applying for new credit" because it looks bad,  even though the inquiries were obviously from car dealerships and right around the same time. I was also denied an FHA streamline refinance with a FICO of 690. 

 

Everything I've read says multiple inquiries count as just one when looking for a car or home loan. So why are they not showing up like that in my credit reports? It's very frustrating...I've gone from a 490 FICO to a 690 in less than a year and while it's not a great score, it's still being considered "bad." 

Established Contributor
bettercreditguy1
Posts: 746
Registered: ‎02-11-2012

Re: Credit inquiries when shopping for a loan

The inquiries from all of the possble creditors will show up as individual credit pulls. For Fico scoring, you are only dinged for one of the credit pulls as long as they dealers code the credit inquiry as "automobile". So yes, the reports are correct in showing all of the inquiries and they will stay on your report for two years. Generally speaking, do not apply for any credit cards, personal, auto, or any other fincancial instruments for a minimum of 6 months before apping for a home mortage. Some underwriters like to see no inquiries for one full year. As always, YMMV. Good luck.
Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Valued Contributor
beb86
Posts: 1,117
Registered: ‎10-31-2011

Re: Credit inquiries when shopping for a loan


bettercreditguy1 wrote:
The inquiries from all of the possble creditors will show up as individual credit pulls. For Fico scoring, you are only dinged for one of the credit pulls as long as they dealers code the credit inquiry as "automobile". So yes, the reports are correct in showing all of the inquiries and they will stay on your report for two years. Generally speaking, do not apply for any credit cards, personal, auto, or any other fincancial instruments for a minimum of 6 months before apping for a home mortage. Some underwriters like to see no inquiries for one full year. As always, YMMV. Good luck.

bettercreditguy1 wrote:
The inquiries from all of the possble creditors will show up as individual credit pulls. For Fico scoring, you are only dinged for one of the credit pulls as long as they dealers code the credit inquiry as "automobile". So yes, the reports are correct in showing all of the inquiries and they will stay on your report for two years. Generally speaking, do not apply for any credit cards, personal, auto, or any other fincancial instruments for a minimum of 6 months before apping for a home mortage. Some underwriters like to see no inquiries for one full year. As always, YMMV. Good luck.

I would say this is more on the extreme side....it is a HUGE problem if you app and open accounts while in the process but the INQ prior to apping for a mortgage at most will need a LOE.

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