Shopping for auto loans

[Anonymous]

Looking to buy a used car for $15k, 20% down.  My Fico is TU 652 and EQ 712.  Unfortunately, I have a Discover card that has a $2899 balance still showing but I paid that off 2 days ago. I'm hoping when the 0 balance goes through, my scores will go up.

Anyways,,, I've been reading on the forums to shop around for a loan. It would be great to go to the dealership already approved since it is an hour away. However, wouldn't applying at various lenders cause my credit score to go down?  I tried to get a loan last year at one dealership and MyFico still shows 3 credit inquiries (I got approved but unfortunately, the dealer sold the car before I could get there).

Would shopping around with 2-3 lenders cause my scores to go down?  I'm assuming each would run my credit and that would negatively affect my score.

[Eager2Learn]

As long as all inquiries are of the same type (auto loan), if done within 14 days of each other they will be calculated as a single inquiry.  If you belong to a credit union, start with them, they will likely be the easiest to qualify for.  For better advice from the "experts" you will probably need to disclose any baddies, prior/current loans, annual income, etc.   

[Anonymous]

Depending on what or if you have any baddies...if EQ is your best score, try PenFed or Alliant Credit Union.  They only pull EQ.  Costs you less inquiries on CRA's, they tend to have lower rates and work with you better and if you have 712 that may go up with the CC payoff, you should do quite well on a $12k loan (15 minus 20%).

Once your CC updates, you should do well at a CU, probably would do okay even with balance, but since you paid I would wait.

The other benefit of the CU, once you have a loan, you will be able to get a CC and other services.  This provides a great financial relationship, not just a good one time deal.

Message Edited by txjohn on 04-14-2009 03:45 AM