topic Re: Auto dealership pulled 12 credit inquiries to different lenders without my permission in Auto Loans

Auto dealership pulled 12 credit inquiries to different lenders without my permission

Anonymous — Mon, 04 Jan 2021 01:04:17 GMT

I use to have like 2-3 inquiries but bought a truck last year and dealership submitted my credit bureau to over 10 lenders so now I have like 17 inquires I n the past year. Awesome for them I guess but I was pissed after I found out so you all need to be careful when dealing with dealerships.

I am guessing they will fall off eventually but it makes it look like I have been asking for credit from a lot of different sources which I'm not other than one vehicle purchase.

Re: Auto dealership pulled 12 credit inquiries to different lenders without my permission

Anonymous — Mon, 04 Jan 2021 01:40:42 GMT

Unfortunately when you authorize them to pull your credit, that gives them permission to fire it off to all the lenders they work with. This is very common. Sometimes it pays off in the form of better loan terms. To avoid it, it's usually recommended to secure preapproved financing ahead of time and let them know you'll be using that.

Scorewise, this won't hurt much - the algorithm de-dupes the inquiries and they affect your score as a single pull (loan inquiries are treated this way to avoid unjustified damage to your score since they're all inquiries seeking to secure the same financing). Lenders will still see all of the pulls but the fact that they're clustered in the same day means that for a lender who will recon a denial, you can explain it if they don't discern that these were car inquiries on their own.

As with any other pulls, they'll influence score for exactly 365 days, and will drop off completely 24 months after they appeared (for TU and EQ), and for EX, they'll fall off on the first Saturday of month 25.

Re: Auto dealership pulled 12 credit inquiries to different lenders without my permission

Loquat — Mon, 04 Jan 2021 04:41:04 GMT

OP, sorry the dealership didn't inform you of how they go about obtaining financing on your behalf. As mention, this practice is common. I was a Finance Manager at a large automotive network in my previous career and I used to shotgun applications all the time...especially if i was working with a subprime customer.

Some deals require such to be done in efforts to obtain financing. But also as mentioned, it doesn't hurt your credit as much as you think. Hopefully your enjoying the new truck!

Re: Auto dealership pulled 12 credit inquiries to different lenders without my permission

MitchDeerfield — Tue, 05 Jan 2021 21:20:19 GMT

Were you a hard person to place with the finance companies? What rate did you finally get.

Re: Auto dealership pulled 12 credit inquiries to different lenders without my permission

Anonymous — Wed, 06 Jan 2021 01:07:19 GMT

4 percent and no this dropped by 820ish score by 10 pts

Re: Auto dealership pulled 12 credit inquiries to different lenders without my permission

Harvey26 — Thu, 07 Jan 2021 04:42:38 GMT

@Anonymous With that kind of score 4% seems king of high unless you have an longer than normal term. If not then I would certainly consult your local credit union or even your primary finanical instituion. I recently refinanced my car with NIH Federal Credit Union and with a 748 I got a 3.49% interest rate.

Re: Auto dealership pulled 12 credit inquiries to different lenders without my permission

Anonymous — Thu, 07 Jan 2021 14:50:43 GMT

Yes it was on a 84 month term and I do plan to refinance it later. Just needed the truck at the time, and this was to get the deal done. Which they went through a local credit union anyway which I found funny. They could have just sent it to them to begin with instead of running me through 12 different lending institutions.

They do not offer zero percent on the particular model I purchased. I am not sure if I will be able to beat it by much as there is not much difference in a half to a point in interest percentage. The zero percent is only general only offered on certain vehicles at certain times.

Re: Auto dealership pulled 12 credit inquiries to different lenders without my permission

805orbust — Sat, 09 Jan 2021 03:16:13 GMT

Yep, they call that the "shotgun". That's why I always go in with my own financing. I hate dealers.