Multiple Credit Pulls = One Hard hit question?

[Anonymous]

In January I'll be 6 months post BK. I'll have $3000.00 for down payment and Fico score will probably be around 620. 5 years on job of $60K plus per year

I've been doing some serious shopping online and I'm not in a hurry to make a purchase.

I want to make the best deal possible with my limited credit rating.

From my understanding if I visit 20 dealerships that all run a hard inquiry within 30 days, all of the credit bureas will only post One hard hit?

Is this correct?

Any other advise / help with my position please reply!

[Anonymous]

Avoid the headache and have a check in hand before you go car shopping.  Credit Unions are a good place to start and to answer your question, that is correct-

[Anonymous]

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@Anonymous wrote:

Avoid the headache and have a check in hand before you go car shopping.  Credit Unions are a good place to start and to answer your question, that is correct-

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Agree on getting the preapproval.  However, technically it's not correct that all the inquiriies will show as 1.  They will count as 1 towards Fico scoring but everyone of the inquiries will appear on the credit reports and can still be harmful towards credit approvals as the computer will pick up the total inquiries and not distinguish between what type they are.  Only on manual review will a CSR see that they're all auto related.  This is why getting the preapproval ise even that more important.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Avoid the headache and have a check in hand before you go car shopping.  Credit Unions are a good place to start and to answer your question, that is correct-

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Agree on getting the preapproval.  However, technically it's not correct that all the inquiriies will show as 1.  They will count as 1 towards Fico scoring but everyone of the inquiries will appear on the credit reports and can still be harmful towards credit approvals as the computer will pick up the total inquiries and not distinguish between what type they are.  Only on manual review will a CSR see that they're all auto related.  This is why getting the preapproval ise even that more important.

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I think that is what OP is asking.  He/She knows it won't be just 1 inquiry.

[Anonymous]

With this information, I will change my strategy.

My plan was to spend a couple of days visiting many dealerships. Getting their best loan approval for lets say a $13,000.00 vehicle at every dealership. Then sorting out the best looking loan options and re-visiting looking for my next vehicle in the $13,000.00 range.

I don't want to add to my already large list of inquiries, so I'll need to slow down on how many dealers I visit.

My Credit Union will only talk to me after 1 year post BK. So other than getting approved at sales lot (Not Buy Here Pay Here) I don't know where else to try pre-approval??

[Anonymous]

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@Anonymous wrote:

With this information, I will change my strategy.

My plan was to spend a couple of days visiting many dealerships. Getting their best loan approval for lets say a $13,000.00 vehicle at every dealership. Then sorting out the best looking loan options and re-visiting looking for my next vehicle in the $13,000.00 range.

I don't want to add to my already large list of inquiries, so I'll need to slow down on how many dealers I visit.

My Credit Union will only talk to me after 1 year post BK. So other than getting approved at sales lot (Not Buy Here Pay Here) I don't know where else to try pre-approval??

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Is the car a [MUST HAVE] for you now?  If so, wait 1 year post BK for the CU and also see your scores improve.  If not, then go to fewer dealerships as you suggested...

[Anonymous]

This vehicle is NOT a must have. I could easily wait another 6 months.

I'm in a good situation right now to buy a vehicle for lets say $14K put down $3K loan 11K and pay off 50-60% of the 11K it in the next 6 months.

My thoughts were to do this and then by July my scores should greatly improve because of the car payments and I will have a car with positive value to trade in with a credit union loan.

Does this make sense?

[Anonymous]

I would suggest joining DCU and see if they will prequalify you.  Subprime lenders often times require dealers to chip in money to get you financed which of course you end up paying.  Buying in the 13k range means you wont have a lot of room for them to do that.  The best case is really to get a prequalified deal with a credit union and buy the car from a private party.  One decision you will need to make is if your shopping for a car or a loan.  I would shop for the car and if you have to take crappy terms take them, then in 6 months when your scores have improved and you have more time post BK refinance, just make sure you do all you can to improve the scores and make sure the LTV makes sense.  I ended up doing that last year took a 12.57% Santander deal then refinanced that down to 4.29% with NFCU.  Best of luck