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too many inquiries?

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pizzadude
Moderator

Re: too many inquiries?


@jenrhi wrote:

I too have this issue and my question is this, can I request to have those inquiries removed if I did not authorize all those different lenders to check my credit? I went to one dealer, not several? I dont recall signing anything to allow them to run my credit, of course what I did sign di not have any particular name of a bank either??



IMO, it would be difficult to get the inquiries removed, and you probably wouldn't gain much from a FICO scoring perspective.

 

Car dealers are the middle man between you and the lending institution.   They use many banks, CUs, etc... to attempt to win your financing business, in addition to selling you a car.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 11 of 17
haulingthescoreup
Moderator Emerita

Re: too many inquiries?


@CS800 wrote:

Since we are on the topic of inqs. IS there a ceiling that inqs can affect us pointwise?

 

Like if you have 14 and above you get hit with the same penalty?

 

0-2

3-6 etc


As best as we can tell, the inq penalty poops out at 5-6 inqs. That's within 12 months, on the same report. If you have 2 on EQ, 1 on TU, and 3 on EX, you don't total them as 6. You just look at the number on each individual report. (This startles a lot of people, which is why I'm posting it.)

 

On my reports, especially on EQ which is easiest to track d/t Scorewatch, I've seen no penalty for inq #1, a drop for #2, nothing for #3, etc. But I * think * it varied a bit with the other reports.

 

In other words, you're not automatically dinged for your first foray into the credit world in a year. And if you go bat-wild and apply for every piece of plastic known to humankind, you won't get dinged after inq 5-6 or so. But you'll probably see dips as you move between 1 and 6.

 

And even when the inq dings give up and slink away, you can still be affected by the lowered AAoA and by the presence of a new account.

 

The only way to truly isolate the effect of an inq is to apply and be denied; thus no new account and no lowering of AAoA. Seems a harsh thing to wish for, though. Smiley Very Happy

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 12 of 17
Revelate
Moderator Emeritus

Re: too many inquiries?


@haulingthescoreup wrote:

@pizzadude wrote:
Most car dealers will "shotgun" your CR to their financing companies, which as you now know, means a lot of inquiries.

Dealers want to sell you the car, and arrange your financing if possible. There is money to be made by doing both.

If you were to be denied credit for this, like by a CC for example, you should recon the denial and point out the fact that they are all auto related.

+1  Many denials are done by computers, which don't differentiate between a dozen apps for CC's and a dozen for a car. It's unlikely that you were shopping for 12 cars, but there are plenty of members here with 12 apps for 12 different CC's.

 


I have to respectfully disagree with this: the scoring algorithms from both FICO and the ones that lenders use internally are enormously complex animals.

 

It is utterly trivial in this day and age for most inquiries to be classified into either Auto, Credit, or even Mortgage-related inquiries by the algorithms: we're talking one extra query to a database table with the name of the inquiry originator (they all had different names even for the same financial insitution on my own reports) and a simple join in order to do so.  That's not an intensive operation from a computer / algorithm perspective in either place they're likely to institute their business logic (database or middle-ware application server in this instance).  Without getting even more horrifically geeky, it's even cheaper than this in a reasonably-designed system from a performance perspective.

 

I can't state that they all do that, but unilaterally ruling out all lenders from having this comparitively low level of sophisitication is unlikely to be accurate.

 




        
Message 13 of 17
haulingthescoreup
Moderator Emerita

Re: too many inquiries?

I think you're saying that lenders ought to be able to differentiate among different types of apps, yes?

 

If so, I agree that they ought to do so. Whether they have bothered to tweak their programs is another question. Smiley Sad

 

We've had a lot of posts by people who were denied withing 30 seconds of hitting the app button (i.e., the app was not reviewed by a human, but run through an algorithm) for having too many inqs. When they called for recon and asked for a pair of eyeballs to examine the report, and pointed out that X amount of inqs were for an auto loan, the denial got reversed. Not all the time, but often.

Again, I agree that this shouldn't be rocket science for lenders to figure out, and I wish they would. And sorry if I misread your post.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 14 of 17
p-
Valued Contributor

Re: too many inquiries?


@haulingthescoreup wrote:
Also, next time around, you might want to get with a local credit union first. Their rates are generally way better, and it will only be one app.

+1 - Learned my lesson - my next auto purchase will be 1 inquiry only from my cu.

Message 15 of 17
CS800
Super Contributor

Re: too many inquiries?

If you apply for a card and get denied, you can do a recon adn explain your inqs.




Message 16 of 17
Booner72
Senior Contributor

Re: too many inquiries?

I have 20 inquiries for 2011.  All but 5 are from house/car/truck refi.  When I recently was in the CU getting a CC the loan lady sat down and we went through them all and I explained them to her and it was no big deal at all.  My current MYFICO score report says I have "8" inquiries affecting my score - which is exactly right.  So I know FICO is doing it right on their end.

 

Also, bc I have SW, I get an alert whenever I get a new inquiry (Well, I didn't last time but accidents happen I guess).  I have NEVER gotten even ONE SINGLE POINT LOSS for inquiries.  NEVER NOT ONCE.  Even the last one w/o the SW report, I see that my score is still the same as pre-inquiry due to the "no change" alert.

 

I have everything, and more, I need for credit so I'm not getting any more inquiries for years unless something weird and unexpected comes up, which I hope doesn't. 

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 17 of 17
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