credit score?
Thursday, September 24th, 2009 at
2:35 am
BillmanWife asked:
When you go to a dealership and they run your credit history to give you a better idea of what rate they can finance you at. How many points does it take away from your credit score? We’ve been car shopping here lately for two vehicles one for my hubby and one for me. Well he already got one, but we went to a few different dealerships and now we’re going to our second one for my car.
When you go to a dealership and they run your credit history to give you a better idea of what rate they can finance you at. How many points does it take away from your credit score? We’ve been car shopping here lately for two vehicles one for my hubby and one for me. Well he already got one, but we went to a few different dealerships and now we’re going to our second one for my car.
Tagged with: Car Shopping • Credit History • Hubby
Filed under: Credit
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Because loan rate shopping is more common today all auto loan inquiries within 14 days are treated as 1 inquiry. So if you have been loan or rate shopping make sure it is done within 14 days and those inquiries will be treated as only one.
Inquiries, in general, only take a couple of points off unless you go too crazy with them.
A large number of inquiries on your credit report will have a negative effect on you credit score and could lower it slightly. Usually it will only lower your score by a few points. This is minor compared to a late payment.
Save up and pay cash for you car. If you can’t afford to pay cash, then you can’t afford the car. From my own experience, I found that the credit score is a complete scam. When I ran my score recently, I got a message stating that I don’t have enough of a history to generate a number. Oh well. I’m debt free, I pay cash for everything, and I can pour money into savings/investments every month. Every financial emergency I’ve had in the last two years was neatly handled by my emergency fund (3-6 months of expenses). Does my lack of a credit score really reflect my financial situation? I don’t even have a credit card. If you really want to succeed financially, you’ll avoid debt and pay cash for everything.