Hard Inquiries??

[Anonymous]

Either way is there anyway I can get those hard inquiries removed after I had told them not to run an auto loan to Cap 1 Auto?  Also by doing that would that impact my score in a positive way?  I'm working so hard on trying to get my credit repaired and I don't know 10+ inquiries pulling me down due to a person who was drinking who hit my car in the first place.

I have a question about hard inquiries on my credit report.  I don't know if I should of posted this in the auto on I guess since a good percentage of them are auto loan inquiries, but I'm trying to rebuild so if it needs to be moved that's totally fine.

There way back in June of last year I was approved for my first auto loan with out a co-signer thru Cap 1 auto.  Pays where on time and I paid early and extra when I could.  Then in late March I get in a car accident and my car is totaled so I'm needing to get a new car, sadly at the time my car insurance hadn't paid off my auto loan yet, with Cap 1 Auto and one of the car dealerships I went to ran my credit through them several times after I advised them not to since I knew I had an open loan out with them; needless to say that dealership wasn't the nicest so I went to another dealer who also ran me through to Cap 1 Auto and wasn't able to get approved, now I'm looking at my report update that myFico gives me and now I have like 10+ hard inquiries on my credit and about five of them are Cap 1 Auto and I'm sure I've read on  here several times that if you're applying for a major loan like that it won't hurt your score that much if it's done in a small frame of time which it was, but I honestly don't feel that Cap 1 Auto should ding me five times after I had told the dealers to not run my loan through them since it wasn't close out.  Sorry if this sound like a long rant.

[AndySoCal]

Auto loans inquiries are treated differently in FICO scoring calculation as compared to a credit card inquiry. All auto loans made within a 30 day period are treated as one inquiry.  FICO is trying to factor in the possibliy of you shopping for a loan. Secondly, inquiries impact your FICO socre for one year they will be on your credit report for 2 years. I would wait about a month and let time take care of the inquiry impact on the score.

[Anonymous]

So basically since they all processed around mid to late April, so hopefully June would reflect them not looking as bad correct?

[RobertEG]

Yes.

Auto and mortgage-related inquiries, PROVIDED they are correctly coded as such when made, are "de-duped" in FICO scoring.  If not properly coded, FICO has no way of "de-duping" them.  Most commercial credit reports dont provide you with the reason codes for inquiries, but some, such as the free CR from annualcreditreport.com, do.

That means that multiple inquiries made for auto loans within in sliding window of 30-45 days prior to the date of the credit pull, depending on the version of the FICO algorithm being used, are treated under FICO scoring as a single inquiry.  Your CR may not show you that, as all of the inquiries will still be posted, but FICO will treat them as only one if properly coded.

Permissible pull for business transactions intitiated by the consumer dont require your pre-approval under FCRA 604.  While multiple pulls related to the same transaction are kinda unfair, they are nevertheless not barred under the permissible pull provisions of FCRA 604 if they are legitimately related to a business transaction intitiated by you.  You are assisted in scoring impact by the de-duping of auto or mortgage related inquiries, but not if they are related to other types of business transactions.  Just another glitch in the not-always perfect FICO scoring algorithms.

[Anonymous]

What's the best plan of action with this since I just noticed that hardly any of those hard inquiries have been removed from my CR.

[llecs]

I personally wouldn't do anything since only one of those inquiries is hurting (if at all) your score due to FICO ignoring the rest. Assuming all of those inquiries were removed, and since FICO only dings for one at the most, I bet you would only see 0 to 5 pts returned, and come March, FICO will ignore all of them.

If wanting them removed due to principle, then that's different. You can call, write, fax, e-mail, etc. the execs at CapOne and see what happens. If you think they ran your credit without permission, maybe you can sue. But what are your damages? How much is 0  to 5 points worth? I've read over and over that dealers will run your credit up to a dozen times plus. I haven't bought a car in over 8-9 years, long before this site, but my next purchase would be at a CU or bank.

[Anonymous]

---

@Anonymous wrote:

What's the best plan of action with this since I just noticed that hardly any of those hard inquiries have been removed from my CR.

---

The inquiries are not actually removed leaving only a single inquiry. They are simply treated like one inquiry for scoring purposes, within the rules as explained above by RobertEG. Disputing inquiries with the bureaus can open up a can of worms (e.g. fraud alerts) and is rarely successful as recounted in many threads.

Best bet, just let it alone and enjoy your new vehicle. The minor damage done is over in March as FICO does not score any inquiry older than one year, although they display for two.

[RobertEG]

Disputes over the appropriatness of credit inquires have been so pervasive and time consuming in the past that, in enacting the implementing rules for the new direct dispute process, such disputes were specifically exempted from ability to dispute with the inquiring party.  16 CFR 660.4(b).  If you wish to dispute, you must do it through a CRA, and go through their dispute resolution process.  That interjects the CRA into the process through their own "reinvestigation" rights, and the ability to verify the accuracy of the reporting from their own files.  Very difficult to prevail on a dispute through the CRA relating to credit inquiries.  For example, disputes over coding of hard vs soft inquiry is not based on any provision of the FCRA, and thus there is no statutory standard for disputing their coding.

By the time the whole dispute mechanism winds its way, the one-year exclusion from credit scoring that is practiced by FICO has normally passed, making it kinda a moot point as to its significance.