Credit Inquiries due to Auto Rate Shopping

[Starting_Over2013]

My Husband and I purchased a vehicle last month and although I was assured by the dealership there would not be excessive inquiries made....we both ended up with several. I wasn't too worried, since I have read numerous times that inquiries related to auto rate shopping made within a certain time period only count as "1" inquiry. Last week I applied for a card with Citi and when I received the 7-10 day mesage, I immediately called them. I was told that my app has been declined due to "too many recent inquiries"! When I explained that they were due to purchasing a vehicle, the customer service rep indicated that those inquiries were not reflected as automotive or auto financing!

When I checked my credit reports, I found that only some of the inquiries were accurately reported. Most of them were reflected only as "credit unions" or "bank". So, my question is, does anyone know if the creditor controls how the inquiry is reported, or do the credit bureau's handle this? I attempted to file disputes, but changing how the inquiries are categorized was not an option. For now, I have just added a personal statement to each report, indicating that the inquiries on those dates pertain to auto rate shopping. Any helpful comments or suggestions would be greatly appreciated!!

[RobertEG]

In making any inquiry, the party requesting your credit report must provide the permissible purpose of their inquiry.

It will be one or more of the reasons detailed under FCRA 604.

If the permisible purpose is only identified as a consumer-initiated request for credit, without the clear additional statement that it is auto-related, then FICO will not score as only one inquiry.

There is no published manual as to the actual reporting process for an inquiry, as it is not covered under the CRA credit reporting manual.

It is not a credit reporting issue, but rather the opposite.... a request to see what others have reported.

As such, I know of no published procedure detailing whether the inquiree must actually provide the auto-related inquiry code, or whether the CRA interprets that coding from the permissible purpose statement provided by the inquiree. 

Perhaps someone who has worked for a creditor who extends auto loans could provide some insight as to whether they actually specify a numeric inquriy code to the CRA, or whether the CRA interprets the code from the statement of their auto-related purpose.

As a side-note, the entire scoring issue is moot if the inquiry is coded as soft, but again, there is no publication issued by the CRA of which I am aware that designates how an inquiree actually controls the coding of their inquiry as "soft".

Are there two codes for a consumer initiated request for credit, for example, with one stating "consumer inititated, but hide the inquiry from others (i.e., record as "soft")" ?

[Starting_Over2013]

Thank you for the info! I will most likely contact the creditors and request that they modify the inquiries, or at least provide me with some type of documentation stating that the inquiries pertained to automotive financing.  

[UncleB]

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@Starting_Over2013 wrote:

Thank you for the info! I will most likely contact the creditors and request that they modify the inquiries, or at least provide me with some type of documentation stating that the inquiries pertained to automotive financing.  

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With enough legwork you might be able to get the HPs updated, but keep in mind in your case with Citi if you were denied for inquiries how they are categorized (auto, general, etc.) woudn't have made a difference. 

While HPs related to an auto application are combined for FICO scoring purposes (if coded correctly), they are still reflected individually on your credit report and any prospective creditor that is HP sensitive - such as Citi - will usually still count them as separate inquiries.

[Starting_Over2013]

Citi actually said that if I'm able to provide documentation within 90 days, they will reconsider my application without another hard pull. But at this point, I'm more concerned with getting the inquiries straightened out.

[UncleB]

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@Starting_Over2013 wrote:

Citi actually said that if I'm able to provide documentation within 90 days, they will reconsider my application without another hard pull. But at this point, I'm more concerned with getting the inquiries straightened out.

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That's unusual but if they are able to make that happen it will be fantastic!  (stranger things have happened...)

If it doesn't work out don't be too worried... it's been reported by many that Citi is usually only concerned with HPs over the last six months, so in any case you won't have to wait long.