Multiple hard pulls when auto loan shopping

Anonymous · ‎11-18-2018

I ran into this experian article https://www.experian.com/blogs/ask-experian/impact-on-credit-scores-of-inquiries-for-an-auto-loan/

it says that all Hard pulls get consolidated into 1 when auto loan shopping. Is this true? Because when I'm looking at my my fico report it still shows all of them.

HeavenOhio · ‎11-18-2018

Your report will show all the pulls. Pulls within a certain time frame that are properly coded as "auto" will be treated as a single pull by FICO. That time frame might differ from one FICO model to the next. Of course, lenders can consider these pulls any way they'd like.

Anonymous · ‎11-18-2018

it says that all Hard pulls get consolidated into 1 when auto loan shopping. Is this true? Because when I'm looking at my my fico report it still shows all of them.

I guess it depends on what you mean by "consolidated into 1." If you take on 12 HPs from 12 different lenders when auto shopping, all 12 will appear on your CR as their own HP. They will not be "consolidated into 1" [inquiry] which to me suggests that only one HP would appear on your CR. The FICO algorithm however assuming the inquiries are coded properly will view (score) them as if it was only one HP. Upon a MR a lender would clearly see that you were rate-shopping, which is completely expected. They would understand that the 12 HPs in this case are really only going to result in 1 actual application for credit, so that's why your score will reflect that.

Anonymous · ‎12-13-2018

Also, there are some places where you can get prequalified for a loan and get an offer based on a "soft credit pull" which doesn't imapct your credit score. Then only if you 100% want to move forward with that offer, will the bank do a hard pull. So instead of going to multiple banks and getting multiple hard pulls done, you can get prequalifeied via a source that does soft pulls 1st. For example, FiWize.com does soft pulls and I know several others too.