topic Re: Inquiries for Lenders I Didn't Apply WIth in Auto Loans

Inquiries for Lenders I Didn't Apply WIth

Anonymous — Tue, 03 Nov 2015 16:48:17 GMT

I shopped for a car this weekend and I apped with WF, DCU, Chase and my credit union. I was preapproved with WF but at the dealer I apped with Toyota Motor Credit too.

Since then I've gotten 13 inquiries on my report. I got one with each bank, except Chase which did EXP twice for some reason, and Toyota did all three plus EXP twice. But now I've gotten some from banks I've never heard of: CUDL/Hughes FCU, CUDL/Vantage West, Kinecta FCU and Ally Financial.

What's the deal? DId I possibly sign off on a whole slew of applications at the dealer? I'm a little bit irritated, however one of my scores actually went up in the midst of all these inquiries so I'm not sure if this will have long lasting detrimental effects. I know multiple auto inquiries in a short period don't have an impact like revolving lines do.

Has anybody heard of these other lenders? The only thing I can think of is that the dealer instigated all these. Does that make sense?

Re: Inquiries for Lenders I Didn't Apply WIth

Anonymous — Tue, 03 Nov 2015 18:21:35 GMT

@Anonymous wrote:
I shopped for a car this weekend and I apped with WF, DCU, Chase and my credit union. I was preapproved with WF but at the dealer I apped with Toyota Motor Credit too.

Since then I've gotten 13 inquiries on my report. I got one with each bank, except Chase which did EXP twice for some reason, and Toyota did all three plus EXP twice. But now I've gotten some from banks I've never heard of: CUDL/Hughes FCU, CUDL/Vantage West, Kinecta FCU and Ally Financial.

What's the deal? DId I possibly sign off on a whole slew of applications at the dealer? I'm a little bit irritated, however one of my scores actually went up in the midst of all these inquiries so I'm not sure if this will have long lasting detrimental effects. I know multiple auto inquiries in a short period don't have an impact like revolving lines do.

Has anybody heard of these other lenders? The only thing I can think of is that the dealer instigated all these. Does that make sense?

When you apply for an auto loan at the dealership it is common to end up with multiple inquries as the applications goes to several lenders. I went to the dealership with a loan already approved that was at 5%. I walked out with a 2.49% rate because the dealership shop for a better rate for me.

Re: Inquiries for Lenders I Didn't Apply WIth

2b2rich — Tue, 03 Nov 2015 20:25:29 GMT

Weatherguy is right. I believe there is a 2 week window where all of those inquiries from auto lenders only count as one so it shouldn't have tanked your score as a result.

Re: Inquiries for Lenders I Didn't Apply WIth

Anonymous — Tue, 03 Nov 2015 21:49:33 GMT

@Anonymous wrote:
@Anonymous wrote:
I shopped for a car this weekend and I apped with WF, DCU, Chase and my credit union. I was preapproved with WF but at the dealer I apped with Toyota Motor Credit too.

Since then I've gotten 13 inquiries on my report. I got one with each bank, except Chase which did EXP twice for some reason, and Toyota did all three plus EXP twice. But now I've gotten some from banks I've never heard of: CUDL/Hughes FCU, CUDL/Vantage West, Kinecta FCU and Ally Financial.

What's the deal? DId I possibly sign off on a whole slew of applications at the dealer? I'm a little bit irritated, however one of my scores actually went up in the midst of all these inquiries so I'm not sure if this will have long lasting detrimental effects. I know multiple auto inquiries in a short period don't have an impact like revolving lines do.

Has anybody heard of these other lenders? The only thing I can think of is that the dealer instigated all these. Does that make sense?
When you apply for an auto loan at the dealership it is common to end up with multiple inquries as the applications goes to several lenders. I went to the dealership with a loan already approved that was at 5%. I walked out with a 2.49% rate because the dealership shop for a better rate for me.

That's what I was guessing. I thought I was getting the loan through Toyota Credit or whatever they're called. I didn't examine my credit contract so maybe one of these lenders with the inquiry is on the contract.

Re: Inquiries for Lenders I Didn't Apply WIth

Anonymous — Tue, 03 Nov 2015 22:04:37 GMT

@2b2rich wrote:
Weatherguy is right. I believe there is a 2 week window where all of those inquiries from auto lenders only count as one so it shouldn't have tanked your score as a result.

Yeah, I was pretty sure multiple auto loan inquiries was not an issue (you're only gonna pick one lender compared to apping for CCs where you want every one) but was mainly concerned with all these inquiries that I didn't solicit (but I guess I did). There was probably some fine print on the app at the dealership about them shopping around.

Re: Inquiries for Lenders I Didn't Apply WIth

Anonymous — Fri, 06 Nov 2015 01:37:50 GMT

I've herd that the inquires won't count but will the fall of the report or will the score just improve bc I have about 10 inquires 😓

Re: Inquiries for Lenders I Didn't Apply WIth

joedtx — Sat, 07 Nov 2015 20:30:13 GMT

@2b2rich wrote:
Weatherguy is right. I believe there is a 2 week window where all of those inquiries from auto lenders only count as one so it shouldn't have tanked your score as a result.

False.....there is no such thing as a window. These are the deceptive sales fodder, the inquiries can be coded differently depending on the lending source which can differ there is never a good opportunity to shoot bulletholes through your credit reports by multiple inquiries and these WILL stay on your reports for a minimum of 2 years. NEVER give the dealer permission to shop your credit.

Re: Inquiries for Lenders I Didn't Apply WIth

fury1995 — Sun, 08 Nov 2015 13:35:00 GMT

@joedtx wrote:
@2b2rich wrote:
Weatherguy is right. I believe there is a 2 week window where all of those inquiries from auto lenders only count as one so it shouldn't have tanked your score as a result.
False.....there is no such thing as a window. These are the deceptive sales fodder, the inquiries can be coded differently depending on the lending source which can differ there is never a good opportunity to shoot bulletholes through your credit reports by multiple inquiries and these WILL stay on your reports for a minimum of 2 years. NEVER give the dealer permission to shop your credit.

You are simply wrong.

This is directly from this site:

"Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score."

Of course all inquiries stay on a bureau for 2 years.

10% of your FICO scores.. are comprised of inquiries AND new accounts.

If inquiries are affecting someon's ability to obtain credit, there are bigger issues they should be dealing with.

Inquiries are overrated. I would gladly trade the possible results of saving hundreds if not thousands over the impact of inquiries any day.

Re: Inquiries for Lenders I Didn't Apply WIth

joedtx — Mon, 09 Nov 2015 07:52:27 GMT

@fury1995 wrote:
@joedtx wrote:
@2b2rich wrote:
Weatherguy is right. I believe there is a 2 week window where all of those inquiries from auto lenders only count as one so it shouldn't have tanked your score as a result.
False.....there is no such thing as a window. These are the deceptive sales fodder, the inquiries can be coded differently depending on the lending source which can differ there is never a good opportunity to shoot bulletholes through your credit reports by multiple inquiries and these WILL stay on your reports for a minimum of 2 years. NEVER give the dealer permission to shop your credit.
You are simply wrong.

This is directly from this site:

"Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score."

Of course all inquiries stay on a bureau for 2 years.

10% of your FICO scores.. are comprised of inquiries AND new accounts.

If inquiries are affecting someon's ability to obtain credit, there are bigger issues they should be dealing with.

Inquiries are overrated. I would gladly trade the possible results of saving hundreds if not thousands over the impact of inquiries any day.

Firstly, you just answered that question in the part that says "typically" it doesn't say 'it won't' and the reason it says that is because the credit is evaluated based on the lending criteria of said institution along with which model of the FICO scoring model being utilized. Inquiries certainly are a factor in the evaluation process there is a reason why a creditor will deny credit stating denial reasons such as: “too many inquiries last 12 months".

My apologies to the OP this was not intended to go off topic, but rather shed light on an aspect of it. I will refrain from further commentation as this is not related to the question asked.

Re: Inquiries for Lenders I Didn't Apply WIth

Anonymous — Mon, 09 Nov 2015 21:29:25 GMT

2b2rich That is a total myth that multiple inquires count as one. I have talked to multiple people after they got 10 plus inquires from getting a car loan and there Fico dropped over 20 points on each CRA. The only time it counts as one is IF and ONLY IF the inquires are coded right which is rarely the case. My sister got a car loan and they ran her credit on all 3 CRAs a total of 17 times and her Fico dropped 55 points. If I apply for Ford Motor Credit they should ONLY run a credit inquiry ONE time for each CRA not multiple times.

@fury1995 Your simply wrong. 10 percent is a ton. One of my buddies got a new car and they shopped his credit. He got 15 inquires and his Experian dropped 71 points. His score was 765 before. So going from 765 to the 690's is a BIG DROP.

Re: Inquiries for Lenders I Didn't Apply WIth

fury1995 — Tue, 10 Nov 2015 17:20:00 GMT

@joedtx wrote:
@fury1995 wrote:
@joedtx wrote:
@2b2rich wrote:
Weatherguy is right. I believe there is a 2 week window where all of those inquiries from auto lenders only count as one so it shouldn't have tanked your score as a result.
False.....there is no such thing as a window. These are the deceptive sales fodder, the inquiries can be coded differently depending on the lending source which can differ there is never a good opportunity to shoot bulletholes through your credit reports by multiple inquiries and these WILL stay on your reports for a minimum of 2 years. NEVER give the dealer permission to shop your credit.
You are simply wrong.

This is directly from this site:

"Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score."

Of course all inquiries stay on a bureau for 2 years.

10% of your FICO scores.. are comprised of inquiries AND new accounts.

If inquiries are affecting someon's ability to obtain credit, there are bigger issues they should be dealing with.

Inquiries are overrated. I would gladly trade the possible results of saving hundreds if not thousands over the impact of inquiries any day.
Firstly, you just answered that question in the part that says "typically" it doesn't say 'it won't' and the reason it says that is because the credit is evaluated based on the lending criteria of said institution along with which model of the FICO scoring model being utilized. Inquiries certainly are a factor in the evaluation process there is a reason why a creditor will deny credit stating denial reasons such as: “too many inquiries last 12 months".

My apologies to the OP this was not intended to go off topic, but rather shed light on an aspect of it. I will refrain from further commentation as this is not related to the question asked.

You stated:

"False.....there is no such thing as a window."

This is the statement I am pointing to. You didn't say "unlikely" or "not always" or "questionable" .. you said there is NO SUCH THING as a window.

Again, you are simply wrong.

There is such a thing as a window.

Believe what you want but It's confirm by this very site that actually provides FICO scores and created the formulas..

Re: Inquiries for Lenders I Didn't Apply WIth

fury1995 — Tue, 10 Nov 2015 17:36:02 GMT

@Anonymous wrote:
2b2rich That is a total myth that multiple inquires count as one. I have talked to multiple people after they got 10 plus inquires from getting a car loan and there Fico dropped over 20 points on each CRA. The only time it counts as one is IF and ONLY IF the inquires are coded right which is rarely the case. My sister got a car loan and they ran her credit on all 3 CRAs a total of 17 times and her Fico dropped 55 points. If I apply for Ford Motor Credit they should ONLY run a credit inquiry ONE time for each CRA not multiple times.

@fury1995 Your simply wrong. 10 percent is a ton. One of my buddies got a new car and they shopped his credit. He got 15 inquires and his Experian dropped 71 points. His score was 765 before. So going from 765 to the 690's is a BIG DROP.

That may be dependent on what score your buddy was looking at...

This is from this site:

Does the formula treat all credit inquiries the same?
No. Research has indicated that FICO Scores are more predictive when they treat loans that commonly involve rate-shopping, such as mortgage, auto and student loans, in a different way. For these types of loans, FICO Scores ignore inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won't affect your scores while you're rate shopping. In addition, FICO Scores look on your credit report for rate-shopping inquiries older than 30 days. If your FICO Scores find some, your scores will consider inquiries that fall in a typical shopping period as just one inquiry. For FICO Scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO Scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO Scores.
What to know about "rate shopping."

Looking for a mortgage, auto or student loan may cause multiple lenders to request your credit report, even though you are only looking for one loan. To compensate for this, FICO Scores ignore mortgage, auto, and student loan inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won't affect your scores while you're rate shopping. In addition, FICO Scores look on your credit report for mortgage, auto, and student loan inquiries older than 30 days. If your FICO Scores find some, your scores will consider inquiries that fall in a typical shopping period as just one inquiry. For FICO Scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO Scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO Scores.

Re: Inquiries for Lenders I Didn't Apply WIth

Anonymous — Tue, 10 Nov 2015 20:34:17 GMT

Well I've learned some things here. I did not go into the dealer planning to have them finance it so when they offered to see what they could do, I said "what the heck" without realizing (and they didn't tell me) that they were going to shop it. So, I got about 14 inquiries between my shopping and theirs.

Since then, EQ went up 4 pts and TU went down 2 points, while EX stayed the same. Nothing too dramatic. I'm sure there'll be more changes to come once the actual loan hits.

BTW, the dealer messed up and didn't get the lender all the correct docs and they cant finalize the loan until they do. I've had the car two weeks now, by the way.. The lender the dealer went with (which they never told me, BTW) contacted me to see if the dealership had contacted me about the missing docs. No, I told them I hadn't heard a peep from them. So, anyway I think we've got it all straight now but I kind of wish I'd financed through one of my banks instead. I would have saved a bunch of inquiries too.

Re: Inquiries for Lenders I Didn't Apply WIth

Anonymous — Fri, 04 Mar 2016 10:48:18 GMT

I know this post is a little dated but I thought I'd add my 2 cents. I bought a car in nov 2015. I went into the dealership already approved but they still ran my application through multiple lenders. Telling people that multiple inq's in a short period only count as one sets them up for failure. You're absolutely correct about them needing to be coded as auto for them to be consolidated as 1. I know because it happened to me. Only a handful of the inquiries were coded as an auto loan application. The others were coded as finance, bank and even miscellaneous. So in short, I ended up with 8 inquiries that each counted individually and 5 that will be consolidated. That absolutely had an impact on my score AND the dealer couldn't beat the rate.