Unauthorized?

[Anonymous]

What counts as unauthorized? I applied for a car loan at a dealership on 1-5-12 and was denied inevitably. Ok fine whatever. However a few days later i see 6 hard inquiries on my cr. I feel like one of those are authorized not all of them!

[pizzadude]

Car dealers are the middleman between you and creditors. As such they will frequently shotgun your credit to multiple lenders in an attempt to secure the best financing for your car purchase. When you filled out a credit application at the dealer you authorized this.

From a FICO scoring perspective the impact should be minimal as AUTO inquiries within a few weeks of each other are scored as only one inquiry.

[pakman92]

This is typical, auto dealer will pull on for itself and the lenders it works with will also pull one each for themselves.  Good thing is for scoring purposes this counts as one inquiry.   For important thigns liek mortgages, the LO will know that this was one single shopping for rates.

However, credit card companies may often use automated methods where these will hurt in getting approvals for CC's.  YMMV

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I'm starting to sound like what i'm talking about, but don't take it for granted.  I'm just regurgitating what's I've read here.

[RobertEG]

Unauthorized is defined as any credit inquiry that is not made for a permissible purpose set forth under one or more subsections of FCRA 604.

When a consumer initiates a business transaction, that is a defined permissible purpose under section 604 for receiving the consumer's credit report, and requires no separate authorization from the consumer.

[Anonymous]

Thanks for the info. If it just counts as one inquiry why would my equifax fako drop 15 points? I can see now its a waste of money for their credit monitoring service. Looks like i'll getting a myfico monitor service.

[pizzadude]

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@Anonymous wrote:
Thanks for the info. If it just counts as one inquiry why would my equifax fako drop 15 points? I can see now its a waste of money for their credit monitoring service. Looks like i'll getting a myfico monitor service.

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Becauase it is a FAKO score ~ it has its own set of scoring guidelines which likely don't follow FICO scoring guidelines.    For example many FAKOs disregard AU accounts.   Some FAKOs ding you for having low credit card limits, or for not having a morgage.....etc...

[Anonymous]

Yea Pizzadude is right and I think as long as it's all with in 30 days then it really dosen't affect you any more than a normal credit check would or applying for credit that is.  For instance when I bought my truck I was also buying a toyhauler,  I planned everything to happen with in a 30 day window so that it wouldn't hit my credit score and bring it down a few points like it will anyway after an inquire.  It just appeared that I was shopping around and it's true I was shopping around to get the best deal!