After working on my credit for a year, My scores are all in the mid 700's now. I just purchased a new Mercedes at 3.9%, put 10K down and financed the rest.
I got the alert that there has been an inquiry reported, but it did not affect my credit score. Does it take a while for an auto loan inquiry to affect your fico? I was expecting to at least lose a few points.
ALso, what will the new auto loan do to my score? It has not yet been reported.
I want to try and get a rewards credit card so that I can start earning miles. I am wondering if I should apply now before the new clar loan is reported.
There's no reasonable way to for the folks here to guess. We'd need to know:
Whether you have any derogs (lates, collections, chargeoffs, etc.). So called dirty profiles behave differently than one that is completely clean.
Whether you have any other installment accounts (loans, auto leases, financing furniture at Rooms To Go, etc.). If you do we'd need to know the balance and original loan amount for each account.
The age of your youngest account
Even so, it would still be guesswork on our part. The simplest way to know is to wait until the auto loan appears and then pull your three scores at CCT for a buck.
Based on what I've read here, an auto loan inquiry (or inquiries) may be buffered, i.e. it may take a couple of weeks or maybe a month for them to be scored. That would be because any auto inquiries within X number of days would be scored as one, and FICO would be waiting to see if there were any more.
No collections, charge off, etc. Only negatives are some 5 year old late pays. Open credit is a 10 year old mortgage and small credit cards- one is 8 months old and the other is 12 months old.
I also have some paid as agreed/closed auto loans.
my scores are
Eq 736/TU 743/Ex 752
That makes sense about the inquiry... no effect of my score for 30 days I have read!
Your score shouldn't drop too much, but we don't have a lot of test cases of a person going from closed loans only to one open loan on which he owes 100% of the loan. I wish we had more.
You might want to hang out on the CC forum and talk to them about what cards you want and what scores are needed. I think your idea of applying before the new loan appears is reasonable.
Are all your lates of the same severity? E.g. all Day 30? Or do you have some Day 30 and some Day 90 (say)?
Auto loan inquiry question here based on what was posted above. My understanding is that multiple auto inquiries made during a certain period of time, say 30 days, are scored as 1 inquiry (if coded correctly). That being said, I always was under the impression that the score hit from the inquiry would happen from the first of these inquiries and simply that additional inquiries during that time period wouldn't further adversely impact score. I've never heard of an auto inquiry landing on a credit report and then not being counted for 30 days. Am I mistaken in my understanding of this?
Does the [FICO] formula treat all credit inquiries the same?
No. Research has indicated that FICO Scores are more predictive when they treat loans that commonly involve rate-shopping, such as mortgage, auto and student loans, in a different way. For these types of loans, FICO Scores ignore inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won't affect your scores while you're rate shopping. In addition, FICO Scores look on your credit report for rate-shopping inquiries older than 30 days. If your FICO Scores find some, your scores will consider inquiries that fall in a typical shopping period as just one inquiry. For FICO Scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO Scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO Scores.
Gotcha, so I have understood how auto inquiries work incorrectly for some time now. Good information!