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Dealership's inquiry effect on Finan. Inst.'s inquiry

Frequent Contributor

Dealership's inquiry effect on Finan. Inst.'s inquiry

When buying a car, the dealership will pull your credit first, then the finance companies will pull your credit. So you will always have at least 2 pulls when buying a car (one from the dealer and one from the financial institution).


Well here's my question......If the dealership pulls the report first, and then the finance companies pull the report second, do the finance companies pull a slightly lower score than what the dealership pulled because of the inquiry by the dealership......???


I don't mind multiple inquiries as long as the scores are the same between them all.

Myfico scores.....
EX... 805 (11-10-13)
EQ... 810 (12-02-13)
TU... 810 (12-02-13)
Message 1 of 4
Established Contributor

Re: Dealership's inquiry effect on Finan. Inst.'s inquiry

I do not think so because the dealership pulled 9 times for me and only got one approval because I got rejection letters or decline of credit letters from all the banks listed in the INQs for the bureau  that approval was in the middle of the inquiries so I have had at least 5 before that approving bank

Message 2 of 4
Valued Contributor

Re: Dealership's inquiry effect on Finan. Inst.'s inquiry

When I bought my car...I left with 11 inquires. Dealership pulled my credit and then I got pulled by several banks. I already had financing but I wanted to see if they could beat my rate. I wasn't worried about inquires but I wanted to know what rate I deserved. They matched my rate. I wanted in-house financing for the car I bought (Hyundai car--Hyundai finance). It was simple. So now I'll have good credit tier with Hyundai if I ever traded up.

As of 2017, rebuilding...
Message 3 of 4
Super Contributor

Re: Dealership's inquiry effect on Finan. Inst.'s inquiry

Most dealerships use a "shotgun" approach when it comes to financing. They will submit all apps simultaneously, before hearing back about the results and terms. As a result, it can often result in unnecessary hard inquiries.

When I applied for an auto loan back in feb, the dealership did 6 apps for me. Ended up I could have just gotten financing from BMW directly for their best rates. Chase, BofA and other banks approved my loan, but ended up not needing them since they had worse terms and I just need 1 car.
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
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