How will applying for an auto loan on-line at several places affect my credit rating?
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I heard that comparing auto loans before shopping for a car is a prudent thing to do. But I’ve also heard that every time you apply for a loan your credit rating is negatively affected. What’s the truth?
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Hiro said:
This is a common misconception about FICO scores. While having too many inquiries on your report can lower your score the timing and frequency make a difference. Because it’s common for most people to shop their loan to multiple lenders the scores block out a period, usually 30 days, to count as a single inquiry. So if you’re shopping for a loan it’s best to do it all at once. They’ll all show up on your report but the scores will only count them once.
Where you hurt yourself is if your shopping for a new credit card, loan, line of credit etc every couple of months. Usually the number of inquiries are counted over a 12 month period. And it’s worse if you were shopping recently vs. 6 months ago. The recency makes a difference as well. Which is why it’s best not to do anything 6-12 months prior to a mortgage application.
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0February 21st, 2010 at 5:43 pm -
tonalc1 said:
Each time you apply, the loan company runs your credit report. Excessive inquiries can lower your rating.
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0 0February 21st, 2010 at 5:43 pm -
redhairedmama75 said:
In general every time a lender checks your credit your score drops x number of points. The lower your score is the less likely you are to get decent financing. It seems to be a catch 22.
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0 0February 21st, 2010 at 5:43 pm -
Bret N said:
Applying at a lot of places is bad. This is why, when you buy a home, they tell you to not do ANYTHING credit wise till your house is signed on and all.
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0 0February 21st, 2010 at 5:43 pm -
Marry M said:
need an auto loan from online…don’t worry you surely get it.i think that th e below website will help you to find the right solution.
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0 0February 21st, 2010 at 5:43 pm
