Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
Re: Auto Credit and Scoring
[ Edited ]


So then it's not like applying for credit cards then? But it does count as one point? Is that for each request? I only ask because my regular scores are just on the margin; two were a few points above and one was just below (last time I checked).

The only difference between home\auto and CCs is FICO calculates all auto\home Inqs as one. For a CC your score gets dinged for every Inq.
Here are some examples...
Auto or Home Shopping:
01-01-2007 -- AUTO1 Inq
01-01-2007 -- AUTO2 Inq
01-02-2007-- AUTO3 Inq
01-10-2007 -- AUTO4 Inq
Total Inqs: 4
Total Inqs Counting Against Score: 1
Est Points Lost: 2-9
01-16-2007 -- AUTO5 Inq
Whoops.. you just got dinged again for AUTO5 since the 14 days from your orginal inq is up.
Credit Cards:
01-01-2007 -- CC1 Inq
01-01-2007 -- CC2 Inq
01-02-2007-- CC3 Inq
Total Inqs: 3
Total Inqs Counting against Score: 3
Est Points Lost: 2-9 PER INQ
As you can see, Inqs generally cost you 2-9pts each (YMMV). Remember, with any inq your total number of inqs still increases. So while scorewise you only get dinged once with auto\home, all the inqs still show up, and you total Inq count still increases.
There is a chance that the auto\home creditor pulling your reports could incorretly code the Inq. If this happens, you could get dinged for all just like any other Inq. That is why it is important to compare your scores before and after rate shopping. I know I am being paranoid, but depending on how much comparing you do, incorrectly coded Inqs could add up start to hurt you real quick.
Make sense?

Message Edited by Tuscani on 05-12-2007 06:05 PM