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Hard inquiry effect on car loan decision

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Anonymous
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Hard inquiry effect on car loan decision

I am looking to finance a car in the coming months. I currently have 1 on my report now(a lease). I also have between 6-8 inquiries on my report in the past 2 years, although many of those are duplicates. For example, before I leased my current car, I had bought/financed a car in august of 2015. I got slapped with 2 inquiries for that, and 2 inquiries on a car that i decided not to close on. I traded that car in when i leased my current car. I only have 1 inquiry in the past 15 months on my report. And my FICO is about 740. When i am going for the new car loan, will i have problems with my multiple inquiries or will this not be a factor? I will try to get a loan from PenFed if that matters at all. 

 

Thanks in advance. 

Message 1 of 5
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Anonymous
Not applicable

Re: Hard inquiry effect on car loan decision


@Anonymous wrote:

I am looking to finance a car in the coming months. I currently have 1 on my report now(a lease). I also have between 6-8 inquiries on my report in the past 2 years, although many of those are duplicates. For example, before I leased my current car, I had bought/financed a car in august of 2015. I got slapped with 2 inquiries for that, and 2 inquiries on a car that i decided not to close on. I traded that car in when i leased my current car. I only have 1 inquiry in the past 15 months on my report. And my FICO is about 740. When i am going for the new car loan, will i have problems with my multiple inquiries or will this not be a factor? I will try to get a loan from PenFed if that matters at all. 

 

Thanks in advance. 


The inquiries that you currently have will not be an issue getting a new auto loan financed with PenFed or any other creditor.  Enjoy your new vehicle when you get it.

Message 2 of 5
800goal800
Frequent Contributor

Re: Hard inquiry effect on car loan decision

I just applied for a car loan with a dealer ( carmax ).  Went out to multiple banks the same day which is fine - approx 8.    Separately I had a mortgage brooker do a tri-merge.   Each score, under factors, said ' too many inquiries had an impact on your score ' - all three CRA.    I was under the impression that these are counted a 1 ?    Approx 2 years ago I was shopping for a nother car so those 6-8 inquires are still on there for another 3 months.    Should the  most recent bunch of inquries have had an impact ?

Message 3 of 5
Anonymous
Not applicable

Re: Hard inquiry effect on car loan decision

FICO scoring will count auto or mortgage inquiries as one within the same time frame...for FICO scoring purposes only.

For manual underwriting or those who use their own internal scoring system, it could be counted individually or as one. No one knows.

If they ask, say your seller was shopping around for a best rate loan.
Message 4 of 5
800goal800
Frequent Contributor

Re: Hard inquiry effect on car loan decision

Is that FICO 8 or all FICO Scores.  The report used :

 

Transunion used Fico Classic 4:  " inquiries impacred the credit score "

Experian used FICO Version 2 :  " too many inquiries last 12 month.s

Equifax used FICO Classic 5:  " number of inquiries adversely affected the score, but not significantly "

 

 

These notes were under each score and not from the lender as far as approval as I never applied.   It was a merged infile credit report from Credit Plus.

 

Thanks

Message 5 of 5
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